The department believes the new rule would preserve essential worker rights and provide consistency for regulated entities. }
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Neil Reichenberg is the former executive director of the International Public Management Association for Human Resources. According to the FTC, this new rule could increase wages by nearly $300 billion annually and expand career opportunities for about 30 million Americans. The salary basis threshold was increased in 2019 from $23,660/year to $35,568/year. .manual-search ul.usa-list li {max-width:100%;} #views-exposed-form-manual-cloud-search-manual-cloud-search-results .form-actions{display:block;flex:1;} #tfa-entry-form .form-actions {justify-content:flex-start;} #node-agency-pages-layout-builder-form .form-actions {display:block;} #tfa-entry-form input {height:55px;} Many experts expect the DOL to set the salary threshold around $800 the mid-point between the current level and the proposed 2016 level. SUMMARY: This notice of proposed rulemaking (NPRM) proposes to rescind the final rule entitled "Joint Employer Status Under the Fair Labor Standards Act," which published on January 16, 2020 and took effect on March 16, 2020. "Snowy Labor Department Sign" [photograph]. Ensure that all factors are analyzed without assigning a predetermined weight to a particular factor or set of factors. This material was created to provide accurate and reliable information on the subjects covered but should not be regarded as a complete analysis of these subjects. Law360 (June 22, 2022, 2:05 PM EDT) -- The U.S. Department of Labor plans to propose a rule in October that would overhaul certain workers' entitlement to overtime pay, the agency said, pushing . Rather than appeal the judge's decision, which was criticized by many unions and worker advocates, the Trump administration proposed a new rule in 2019 that elevated the overtime wage . The proposal will likely amend the Trump administration's final . Additionally, not knowing regulatory priorities can have an impact on budget and resource planning for employers, especially during a time of high inflation and anticipated economic recission. | 2 p.m. Any information you send to Locke Lord LLP through this website is on a non-confidential and non-privileged basis. Virtual & Washington, DC | February 26-28, 2023. When finalized, the plan will set forth the EEOCs enforcement priorities. While details of the Democratic-majority NLRBs NPRM on joint employer status are unknown, we would expect them to revise the current standard to reflect the Obama-era decision. The .gov means its official. The DOL, HHS, and Treasury just released an FAQ that provides guidance on if Drug Manufacturers' Coupons disqualify Health Savings Accounts. Subscribe to HR Dive for top news, trends & analysis, The free newsletter covering the top industry headlines, Talent Attraction and Retention for 2023: Finance and HR leaders should look to on-demand pay,, The Omnia Group Releases 2023 Annual Talent Trends Report, TimeForge Integrates with Careerjet to Give Businesses Access to Thousands of Job Seekers, Talkspace Launches First-of-its-Kind Portal Dedicated to Employee Mental Health Resources, By signing up to receive our newsletter, you agree to our. Colorado Maine New York The salary threshold for the overtime exemption varies based on geographical location. Assist with the proper classification of employees and independent contractors under the FLSA. Please confirm that you want to proceed with deleting bookmark. Another increase has long been on the Biden administrations agenda, but it has not said what dollar figure it has in mind. United States Department of Labor Washington, DC 20210 Re: Overtime Regulations Proposed in the Fall 2021 Regulatory Agenda Dear Acting Administrator Looman: . ET, Webinar New DOL Overtime Threshold in 2022. Please press Ctrl/Command + D to add a bookmark manually. As an update, the April deadline has passed, but it is now anticipated that the DOL intends to propose new FLSA overtime rules this October. The FLSA does not require overtime pay for work on Saturdays, Sundays, holidays, or regular days of rest, unless overtime is worked on such days. Affiliate of the Society for Human Resource Management, Home Blog 2022 DOLS PROPOSED OVERTIME RULE. Matt Popovich. Comments on the proposed rule are due by March 10, 2023. Employers should carefully review all pay practices, exemptions from overtime, and potential FLSA liability in light of these potential changes. In closing AMB applauds the substantial effort of the Department of Labor in overhauling these regulations. The agenda says they will have proposed rule revisions and . Your browser does not allow automatic adding of bookmarks. Ruling on a narrow, but significant question, the US Supreme Court affirmed that the white . else if(currentUrl.indexOf("/about-shrm/pages/shrm-mena.aspx") > -1) {
Learn more about the Wage and Hour Division. They are not intended either as a substitute for professional advice or judgment or to provide legal or other advice with respect to particular circumstances. In September 2019, the Trump DOL issued a new overtime rule, which took effect on January 1, 2020, raising the weekly minimum salary for EAP exemptions from $455 per week ($23,660 per year . The federal overtime provisions are contained in the Fair Labor Standards Act (FLSA). }. 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. Survey Participation and Information Templates, CUPA-HR Welcomes a New Board of Directors for 2022-23. 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. CUPA-HR has engaged with DHS on the Form I-9 flexibilities through the pandemic. $('.container-footer').first().hide();
Neither members nor non-members may reproduce such samples in any other way (e.g., to republish in a book or use for a commercial purpose) without SHRMs permission. 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. }
The Internal Revenue Service has increased by three cents per mile, the optional standard mileage rates used to calculate the deductible costs of operating an automobile for business purposes. [CDATA[/* >*/. $(document).ready(function () {
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. In 2016, a proposed change would have moved the salary threshold from $455 per week ($23,660 annualized) to $913 per week ($47,476). The Notice of Proposed Rulemaking was originally slated for April 2022 but then delayed to October of that year. Jan 23, 2023 | Neil Reichenberg, HRCI Contributing Writer. One other item that may be in play is the duties test, Boonin added. }); if($('.container-footer').length > 1){
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. The salary basis threshold has been raised numerous times since Congress enacted the FLSA in 1938. Members may download one copy of our sample forms and templates for your personal use within your organization. While employers should be monitoring these potential changes, the regulatory process is still in the early stages, said Jim Plunkett, an attorney with Ogletree Deakins in Washington, D.C. "At this time, stakeholders do not even know what changes the DOL will propose, much less finalize," he said. Federal government websites often end in .gov or .mil. Democrats want OT salary threshold upped to $82,732 by 2026. Gain the intel you need now to successfully anticipate and navigate employment laws, stay compliant and mitigate legal risks. After a new overtime rule is proposed, the public will have at least 30 days to comment on it before the DOL can issue a final rule. Topics covered: Culture, executive buy-in, discrimination, training, equal pay, and more. Digital platform companies like Uber, Lyft, Instacart, and DoorDash are waging increasingly aggressive campaigns to erode long-standing labor rights and consumer protections in states across the country. 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. 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. Trumps DOL then revisited the threshold, agreeing that an increase was needed, but one far below the rate Democrats had planned. Review the laws and regulations that govern overtime in the United States. The U.S. Department of Labor (DOL) recently published its spring regulatory agenda containing a tentative date of October 2022 for a proposed overtime rule. Normally, overtime pay earned in a particular workweek must be paid on the regular pay day for the pay period in which the wages were earned. The site is secure. .manual-search ul.usa-list li {max-width:100%;} President Joe Biden directed the DHS on Jan. 20, 2021, to take all appropriate actions to preserve and strengthen DACA, consistent with applicable law. While the specifics remain unknown, some labor law experts speculate that it will: Increase the weekly threshold from $684 to $900--$1,000. Let HR Dive's free newsletter keep you informed, straight from your inbox. Specifically, the flexibility guidance allows for remote inspection of Form I-9 documents in situations where employees work exclusively in a remote setting due to COVID-19-related precautions. Revert to the longstanding interpretation of the economic reality factors. CUPA-HR filed anextension request with the department asking for an additional 90 days to evaluate the NPRMs impact on [members] research missions and collect the information needed in order to provide thoughtful and accurate input to the USDA, as well as official comments that were pulled from 2012 comments CUPA-HR submitted with the Society for Human Resource Management (SHRM). ol{list-style-type: decimal;} It is not intended to provide specific legal, tax or other professional advice. Neither Arthur J. Gallagher & Co., nor its affiliates provide accounting, legal or tax advice. Members may download one copy of our sample forms and templates for your personal use within your organization. Copyright 2023 HRCI. An HR Advisor is here to help by email, live chat, or phone. 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). .usa-footer .container {max-width:1440px!important;} The .gov means its official. Please purchase a SHRM membership before saving bookmarks. Once anticipated in the spring, the proposed rule will recommend how to implement the exemption of bona fide executive, administrative and professional employees from the Fair Labor . #block-googletagmanagerfooter .field { padding-bottom:0 !important; } Comments on the draft plan must be submitted by February 9, 2023. A sign stands in front of the U.S. Department of Labor. Preserving access to the legal system focusing on overly broad waivers, releases, non-disclosure agreements or non-disparagement agreements, mandatory arbitration provisions, failure to keep applicant and employee data and records, and retaliatory practices that dissuade employees from exercising their rights. Sign up for our newsletter and get the latest to your inbox. Unless exempt, employees covered by the Act must receive overtime pay for hours worked over 40 in a workweek at a rate not less than time and one-half their regular rates of pay. A new overtime rule from the U.S. Department of Labor is likely to change some of the existing rule's white-collar exemptions. 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 . DHS has provided temporary flexibility in the Form I-9 verification process since the beginning of the COVID-19 pandemic. Topics covered: National employment laws, harassment, accommodations, training, and more. To request permission for specific items, click on the reuse permissions button on the page where you find the item. However, on March 14, 2022, a district court vacated the Department's rules to delay and withdraw the Independent Contractor Status Under the Fair Labor Standards Act . Effective Jan. 1, 2022, the minimum wage in California will increase to $15 per hour for large employers with 26 or more employees; it will increase to $14 for small employers with fewer than 25 employees. 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. In July 2022, the National Labor Relations Board (NLRB) is planning to release an NPRM to potentially amend the standard determining when two employers may be considered joint employers under the National Labor Relations Act. The case hinged on the "salary basis" test for the white . Its latest regulatory agenda lists May 2023 as the target date for two key Fair Labor Standards Act (FLSA) developments: a proposed overtime rule and a final independent contractor rule. President Biden touted increasing the salary threshold throughout his presidential campaign. The U.S. Department of Labor (DOL) recently published its spring regulatory agenda containing a tentative date of October 2022 for a proposed overtime rule. .manual-search ul.usa-list li {max-width:100%;} 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. .manual-search-block #edit-actions--2 {order:2;} .cd-main-content p, blockquote {margin-bottom:1em;} The DOL review and anticipated announcement represent a quick turnaround, given the previous update to overtime rules implemented in 2019 delivered the first substantive changes enacted since 2004. This final rule went into effect January 1, 2020, and it remains in effect today. 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. U.S. Department of Labor (DOL)/Wage and Hour Division (WHD), DOL/Office of Labor-Management Standards (OLMS), DOL/Employee Benefits Security Administration (EBSA), Occupational Safety and Health Administration (OSHA). "Some commentators, though, believe that the administration may go the distance this time and look toward conforming the federal rules to more closely reflect the California standards," he said. Certain groups have been advocating for a tightening of the duties tests, claiming that the tests are currently too loose and are toothless. We will advise you when the proposed test is finally issued. The agency plans to release a new overtime threshold in May. 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