DOL/Employee Benefits Security Administration (EBSA) Before publication of todays proposed rulemaking, the departments Wage and Hour Division considered feedback shared by stakeholders in forums during the summer of 2022 and will now solicit comments on the proposed rule from interested parties. These changes moved the threshold to $684 per week . These exemptions are commonly referred to as the white-collar or EAP exemptions. Please purchase a SHRM membership before saving bookmarks. In its recent spring regulatory agenda, the U.S. Department of Labor (DOL) announced its plans to issue a proposed overtime rule in October 2022. The federal overtime provisions are contained in the Fair Labor Standards Act (FLSA). Many experts expect the DOL to set the salary threshold around $800 the mid-point between the current level and the proposed 2016 level. This website uses cookies to understand your use of our website and to give you a better experience. The proposed rule, which would rescind and replace a prior rule published in January 2021, would shift the analysis of whether a worker is an employee of a business for purposes . Find the latest news and members-only resources that can help employers navigate in an uncertain economy. . Before sharing sensitive information, make sure youre on a federal government site. Supreme Court: Salary, Not Daily Pay, Required for FLSA Overtime Exemptions. While this aspect of the exemption rules is not anticipated to change with the 2022 proposed rule changes, the duties test is important to remember when considering the classification of a particular role. To cope with a paradoxical labor market, HR pros still squarely focused on recruiting may need to re-evaluate role requirements, inclusion initiatives and more. The U.S. Department of Labor (DOL) recently announced its intent to update the salary level threshold for "white-collar" exemptions to parts of the Fair Labor Standards Act, a regulatory change that could significantly affect community colleges. Different workweeks may be established for different employees or groups of employees. Thank you again for providing me the opportunity to testify on the Department of Labor final overtime rule, and I would be happy to answer any questions that any of the members may have. Please confirm that you want to proceed with deleting bookmark. Lee Schreter, an attorney with Littler in Atlanta, said she wouldn't be surprised if the DOL tightens up the administrative exemption. Matt Popovich. Learn how SHRM Certification can accelerate your career growth by earning a SHRM-CP or SHRM-SCP. Notably absent from the spring regulatory agenda is an entry for an FLSA independent-contractor rulemaking, given that a recent blog post on the DOL's website stated that such a proposal is in the works, Plunkett said. .agency-blurb-container .agency_blurb.background--light { padding: 0; } Partner Russell Bruch spoke to HR Today about a proposed US Department of Labor overtime rule expected to lead to increased eligibility for overtime pay. ACTION: Notice of proposed rulemaking; request for comments. "This type of change would also disqualify many currently exempt employees from their current exempt status," he said. Marcus G. Keegan, EEOC regional attorney for the Atlanta District Office stated, The ADA requires employers to provide reasonable accommodations to employees with disabilities to ensure those with disabilities have an equal opportunity to work to their full ability. The services of an appropriate professional should be sought regarding your individual situation. Procedures on voluntary recognitionof unions. On Jan. 4, the Biden administration released its long-awaitedFall 2022 Unified Agenda of Regulatory and Deregulatory Actions. The agency plans to release a new overtime threshold in May. June 29, 2022. Before the Fifth Circuit reviewed Judge Mazzants decision, the Trump administration rescinded the rule and raised the salary threshold to the current $684/week standard. var currentLocation = getCookie("SHRM_Core_CurrentUser_LocationID"); It remains to be seen whether the DOL will follow its own timeline, however. overtime pay and the ability to organize into unions. USCIS Modernizing H-1B Requirements and Oversight and Providing Flexibility in the F-1 Program, In May 2023, the Department of Homeland Security (DHS)s United States Citizenship and Immigration Services (USCIS) plans to release an NPRM to amend its regulations governing H-1B specialty occupation workers and F-1 students who are the beneficiaries of timely filed H-1B cap-subject petitions. The NPRM will specifically propose to revise the regulations relating to employer-employee relationship and provide flexibility for start-up entrepreneurs; implement new requirements and guidelines for site visits including in connection with petitions filed by H-1B dependent employers whose basic business information cannot be validated through commercially available data; provide flexibility on the employment start date listed on the petition (in limited circumstances); address cap-gap issues; bolster the H-1B registration process to reduce the possibility of misuse and fraud in the H-1B registration system; and clarify the requirement that an amended or new petition be filed where there are material changes, including by streamlining notification requirements relating to certain worksite changes, among other provisions., ICE Optional Alternative to the Physical Examination Associated With Employment Eligibility Verification (Form I-9), According to the Regulatory Agenda, DHS plans to issue an NPRM in July 2022 to revise employment eligibility verification regulations to allow the Secretary to authorize alternative document examination procedures in certain circumstances or with respect to certain employers.. Another item on the list of DOL priorities may be the creation of an automatic annual or periodic increase to the salary level by indexing it to the consumer price index or another economic indicator so that the amount will increase without the DOL having to undertake formal rulemaking. An agency within the U.S. Department of Labor, 200 Constitution Ave NW The move would have entitled millions more employees to overtime pay, economists estimated, but it was halted when a federal judge. That final rule took effect on January 1, 2020. In . .manual-search ul.usa-list li {max-width:100%;} @media only screen and (min-width: 0px){.agency-nav-container.nav-is-open {overflow-y: unset!important;}} More than 54,000 people submitted comments on the rule. Trumps DOL then revisited the threshold, agreeing that an increase was needed, but one far below the rate Democrats had planned. Many of these pending and future rulemakings outlined above are expected to face scrutiny via congressional oversight in the newly Republican-controlled House of Representatives. Employers should prepare now to review their workforce for exempt/non-exempt status to ensure they are compliant with the new overtime rule before the effective date is launched. proposed changes. #block-googletagmanagerfooter .field { padding-bottom:0 !important; } By continuing to use our site or by closing this banner without changing your cookie settings, you agree to our use of cookies. When the economy is unstable, employers are faced with difficult decisions around staffing, pay and benefits. } Before sharing sensitive information, make sure youre on a federal government site. var currentUrl = window.location.href.toLowerCase(); Guidance materials about overtime topics, including an Employment Law Guide, Qs & As, guide to overtime laws in the states, and more. In publishing the proposed new rule . However, Schreter said, "I don't think they're going to give up on that.". In the Fall 2021 Regulatory Agenda, the DOL's Wage and Hour Division (WHD) announced plans to issue an NPRM as early as April 2022 to address overtime pay requirements for certain white-collar employees.1 Since 1938, the Fair Labor Standards Act (FLSA or Act) has established the minimum wage and overtime pay The DOL, HHS, and Treasury just released an FAQ that provides guidance on if Drug Manufacturers' Coupons disqualify Health Savings Accounts. Specifically, the proposed rule would do the following: The department is responsible for ensuring that employers do not misclassify FLSA-covered workers as independent contractors and deprive them of their legal wage and hour protections. The Department delayed the rule on March 4, 2021, and then withdrew it on May 6, 2021, believing that it was inconsistent with the Fair Labor Standards Act's text and purpose. Neither Arthur J. Gallagher & Co., nor its affiliates provide accounting, legal or tax advice. The integral factor, which considers whether the work is integral to the employers business, is also included. The EEOC reported that in resolving the lawsuit, the employer agreed to a two-year consent decree; will pay the former employee $47,500 in monetary damages; train its employees on the ADA; make changes to its employment policies; and allow the EEOC to monitor how it handles future requests for accommodation. The proposed rule is intended to replace the 2021 independent contractor regulation. The Act applies on a workweek basis. Review Administrator Interpretations, Opinion and Ruling Letters as well as pertinent chapters of the WHD Field Operations Handbook. The site is secure. p.usa-alert__text {margin-bottom:0!important;} enter into or attempt to enter into a noncompete agreement with a worker; maintain a noncompete agreement with a worker; or. .dol-alert-status-error .alert-status-container {display:inline;font-size:1.4em;color:#e31c3d;} Eliminating recruitment and hiring barriers. The Equal Employment Opportunity Commission has settled a COVID discrimination case and also published for public comment its draft strategic enforcement plan. Topics covered: National employment laws, harassment, accommodations, training, and more. Of note, in 2016, the Obama administration attempted to raise the salary basis threshold from $455/week to $921/week. 96% of members agree: "SHRMs information is very useful to me". .h1 {font-family:'Merriweather';font-weight:700;} Democrats want OT salary threshold upped to $82,732 by 2026. * * *On October 11, 2022, the U.S. Department of Labor released a proposed rule to update the test for determining whether a worker is an employee under the Fair Labor Standards Act (FLSA) or an independent contractor. Consistent with the presidential memorandum, the DHS published a notice of proposed rulemaking on Sept. 28, 2021, to consider all issues regarding DACA, including those identified by the district court relating to the policy's substantive legality. The May goal represents a second delay. There is no limit in the Act on the number of hours employees aged . President Joe Biden directed the DHS on Jan. 20, 2021, to take all appropriate actions to preserve and strengthen DACA, consistent with applicable law. March 21, 2022. To find out more about our use of cookies and how to change your settings, please go to our Privacy Policy. The amount for small employers will increase again on Jan. 1, 2023 to $15 per hour. Final Regulatory Text. The federal rules governing overtime pay were established by the Fair Labor Standards Act (FLSA), which also described which workers are exempt from . While the employer allowed other employees in her position to work from home, it denied her request and shortly thereafter terminated her employment. CUPA-HR participated in all of the calls, expressing our concerns with the timing of the rulemaking as it relates to the ongoing challenges of the COVID-19 pandemic, a historically tight labor market, and increasing inflation. Misclassification denies basic worker protections such as minimum wage and overtime pay and affects a wide range of workers in the home care, janitorial services, trucking, delivery, construction, personal services, and hospitality and restaurant industries, among others. . The U.S. Department of Labor (DOL) had predicted it would issue its proposed new rule to overhaul the overtime regulations of the Fair Labor Standards Act in October, but we are still waiting for that proposal. In particular, the House Education and Labor Committee (expected to be renamed the "House Education and Workforce Committee" by the new Republican majority) is expected to pursue aggressive oversight of the DOL and the NLRB. As an FLSA refresher, to meet the criteria for exemption from overtime, an employee typically must pass the standard of two "tests": The first test centers on the employee's responsibilities in the organization. In the February NPRM, USDA provided only 32 days for stakeholder comment submissions on the proposal. Some of the topics on which comment was requested, along with a number of alternative approaches described in the proposed rule, suggests that the ultimate product of the rulemaking may be less than a total ban. The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely. The move would have entitled millions more employees to overtime pay, economists estimated, but it was halted when a federal judge enjoined the rule just days before it was set to take effect. Now is a great time to put your "HR house" in order when it comes to accurate exempt/non-exempt classifications and earning thresholds. One other item that may be in play is the duties test, Boonin added. In 2021, four congressional Democrats argued for a threshold in line with the historical high point of salary thresholds the 55th percentile of earning of full-time salaried workers nationwide. That would have resulted in a threshold of $82,732 by 2026, the letter said. Under the FLSA, employees must receive overtime pay of at least one and one-half times their regular rate of pay for work in excess of forty hours per workweek. NAM Vice President of Infrastructure, Innovation and Human Resources Policy Robyn Boerstling joined us to explain what's happening. Please note that all such forms and policies should be reviewed by your legal counsel for compliance with applicable law, and should be modified to suit your organizations culture, industry, and practices. By: Jenny R. Yang February 28, 2023. Conversely, there is nothing stopping the DOL from issuing new rules before its target dates, either. The U.S. Department of Labor said it will review Fair Labor Standards Act regs that implement white-collar minimum wage and overtime exemptions and propose an update in April 2022. The United States Department of Labor (DOL) is expected to propose a new salary threshold for various overtime exemptions under the Fair Labor Standards Act (FLSA). Modify the duties tests so more employees are classified as non-exempt, and. Federal government websites often end in .gov or .mil. Webinar URL: https://www.complianceprime.com/details/980/new-proposed-overtime-rule-2022The Department of Labor will soon issue new . The law covers virtually every employer . Revert to the longstanding interpretation of the economic reality factors. $(document).ready(function () { The proposed overtime rule will be published in May, according to the agenda. The U.S. Department of Labor in September 2019 updated the federal overtime rules regarding executive, administrative, and professional workers. Among the subject matter priorities included in the draft plan are: IRS Increases Mileage Rates by Three Cents The Internal Revenue Service (IRS) advised that the optional standard mileage rates used to calculate the deductible costs of operating an automobile for business purposes increased by three cents to 65.5 cents per mile effective on January 1, 2023. div#block-eoguidanceviewheader .dol-alerts p {padding: 0;margin: 0;} But they delayed it and are now targeting October 2022 as the release date. else if(currentUrl.indexOf("/about-shrm/pages/shrm-mena.aspx") > -1) { . CUPA-HR filedcommentsin opposition to the Trump administrations regulations on the issue andin responseto the Biden administrations RFI. #block-googletagmanagerfooter .field { padding-bottom:0 !important; } View our privacy policy, privacy policy (California), cookie policy, supported browsers and access your cookie settings. Averaging of hours over two or more weeks is not permitted. In the Biden administration's fall 2021 regulatory agenda, the Department of Labor (DOL)'s Wage and Hour Division (WHD) announced that it planned to release in April 2022 a Notice of Proposed Rulemaking (NPRM) changing criteria for the "executive, administrative and professional" exemptions from the overtime pay requirements under the Fair Labor Standards Act (FLSA). ET, Webinar The case hinged on the "salary basis" test for the white . 10.19.2022 The Department of Labor is seeking public comment on or before November 28, 2022, regarding its proposed changes to the classification of independent contractors under the Fair Labor Standards Act. The materials and information included in the XpertHR service are provided for reference purposes only. The DOL's proposed overtime rule would raise the minimum weekly pay threshold legally required to exempt salaried workers from overtime pay from $455 per week to the 40th percentile of earnings for full-time salaried workers. The U.S. Department of Labor (DOL) announced in its spring regulatory agenda in mid-June that a proposed new overtime rule will be released later this year. Based on a thorough review of the Regulatory Agenda, CUPA-HR would like to highlight the following proposed actions for members, including an updated target date for the release of a new overtime proposal. Please log in as a SHRM member before saving bookmarks. According to DOLs agenda, the proposed rule will update the salary level at which many workers become exempt from the Fair Labor Standards Acts minimum wage and overtime requirements. DOL's Wage and Hour Division plans to develop and release a notice of proposed rulemaking . Comments, which must be submitted from Oct. 13 to Nov. 28, 2022, should be submitted online or in writing to the Division of Regulations, Legislation and Interpretation, Wage and Hour Division, U.S. Department of Labor, Room S-3502, 200 Constitution Ave. NW, Washington, DC 20210. Many unions and other worker advocates believe the DOL should match or exceed the $921 salary level of the 2016 proposed rule, with several groups demanding the salary level be set at $1,000 per week. The DOL has considered modifying the regulations in this regard a few times in recent yearsbut hasended up leaving the current tests alone. Compete for talent by understanding how anticipated significant changes to FLSA earnings thresholds will affect your organization, Human Resources and Compensation Consulting, Prepare Now for FLSA Rule Changes Coming Soon, Affordable Housing Insurance and Consulting for Nonprofits, Business Continuity Planning and Resiliency Services, Claims Management and Third Party Administration, Compensation Consulting and Total Rewards Programs, Diversity, Equity and Inclusion (DEI) Consulting, Human Resources and Compensation Consulting Overview, Meet the Human Resource Compensation Consulting Team, Physical and Emotional Wellbeing Consulting, National Center for Civil and Human Rights, National Underground Railroad Freedom Center, Some analysts anticipate salary thresholds as high as. In October 2022, DOL's Employment and Training Administration (ETA) plans to issue an NPRM to establish "a new wage methodology for setting prevailing wage levels for H-1B/H-1B1/E-3 and PERM programs consistent with the requirements of the Immigration and Nationality Act.". Last October, the DOL proposed a new independent contractor rule that would establish a version of the "economic realities test" as the standard for determining whether a worker is an employee or an independent contractor under the FLSA. Please purchase a SHRM membership before saving bookmarks. The salary basis threshold was increased in 2019 from $23,660/year to $35,568/year. All rights reserved. On June 21, the Biden administration released the anticipated Spring 2022 Unified Agenda of Regulatory and Deregulatory Actions (Regulatory Agenda), providing the public with a detailed glimpse into the regulatory and deregulatory activities under development across approximately 67 federal departments, agencies and commissions. Comments on the proposed rule are due by March 10, 2023. The policy directed U.S. With the issuance of its spring regulatory agenda on June 21, the U.S. Department of Labor (DOL) announced that its proposed overtime rule is now tentatively slated to be released in October. Regardless of the ultimate increase in the salary level, employers who rely on the white-collar exemptions should be on notice of potential changes. .usa-footer .grid-container {padding-left: 30px!important;} The proposed rule sent stocks for gig companies like DoorDash, Lyft and Uber down. Please note that all such forms and policies should be reviewed by your legal counsel for compliance with applicable law, and should be modified to suit your organizations culture, industry, and practices. The agency ultimately proposed and, Another increase has long been on the Biden administrations agenda, but it has not said what dollar figure it has in mind. Review the laws and regulations that govern overtime in the United States. Restore the multifactor, totality-of-the-circumstances analysis to determine whether a worker is an employee or an independent contractor under the FLSA. Addressing selected emerging and developing issues such as qualification standards that discriminate against individuals with disabilities, protecting individuals affected by pregnancy, childbirth and related medical conditions under the Pregnancy Discrimination Act, employment discrimination associated with COVID-19 and other threats to public health, and technology related discrimination. 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As the white-collar or EAP exemptions Not Daily pay, Required for overtime... The amount for small employers will increase again on Jan. 4, Obama! Duties test, Boonin added faced with difficult decisions around staffing, pay and benefits..alert-status-container {:. // ensures that you want to proceed with deleting bookmark for FLSA overtime exemptions more about our of... Me '' the economic reality factors times in recent yearsbut hasended up leaving the current level and ability! The federal overtime rules regarding executive, administrative, and case and also published for public comment its strategic!
