Regulatory agenda lists the status of anticipated regulatory actions. These exemptions are commonly referred to as the white-collar or EAP exemptions. The Notice of Proposed Rulemaking was originally slated for April 2022 but then delayed to October of that year. 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 Overtime Rule. 96% of members agree: "SHRMs information is very useful to me". As we previously reported in our New Year's Update for 2022, the US Department of Labor (DOL's) regulatory agenda included proposed rulemaking on the Fair Labor Standards Act (FLSA) overtime rules by April 2022. Please enable scripts and reload this page. The Biden Administration's fall 2021 regulatory agenda projects that the Department of Labor (DOL) will revisit before April 2022 the salary level at which an employee could be exempted from federal overtime and minimum wage requirements, as well as address other aspects of the overtime regulatory regime. Our goal is to ensure that all New York workers are being paid the proper wages, do not have their right to a meal period or day of rest violated, and to uphold New York State Labor Laws. New DOL Overtime Threshold in 2022. 2022: Fall 2022 Rulemaking Comments. The FTC noted that the proposed rule would make it illegal for an employer to: EEOC Settles COVID Discrimination Lawsuit The Equal Employment Opportunity Commission (EEOC) announced that it settled a lawsuit alleging disability discrimination in violation of the Americans with Disabilities Act (ADA) by an employer who denied an employees reasonable request to work from home and subsequently fired her. The salary basis threshold was increased in 2019 from $23,660/year to $35,568/year. The Federal Trade Commission has issued a proposed rule that would ban employers from imposing noncompete agreements on their workers. Final Regulatory Text. While that guidance is onlytemporary, DHS issued aRequest for Public Input (RPI) on October 26, 2021, to determine whether those flexibilities should be kept in place permanently. These changes moved the threshold to $684 per week . Fair Labor Standards Act The FLSA establishes minimum wage, overtime pay, and payday standards, in addition to recordkeeping obligations . if(currentUrl.indexOf("/about-shrm/pages/shrm-china.aspx") > -1) { "Thus, it is premature to make internal changes to pay policies in anticipation of the rulemaking. However, Section 13(a)(1) of the FLSA provides an exemption from overtime pay for individuals employed as bona fide executive, administrative, and professional employees and who receive pay on a salary basis of not less than $684/week. $("span.current-site").html("SHRM MENA "); 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. Survey Participation and Information Templates, CUPA-HR Welcomes a New Board of Directors for 2022-23. Any information you send to Locke Lord LLP through this website is on a non-confidential and non-privileged basis. 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. 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. For questions or additional information, contact Reichenberg atneilreichenberg@yahoo.com. $(document).ready(function () { President Biden touted increasing the salary threshold throughout his presidential campaign. Another increase has long been on the Biden administrations agenda, but it has not said what dollar figure it has in mind. Your session has expired. When autocomplete results are available use up and down arrows to review and enter to select. 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. The new proposal is likely to be issued in the near future and could be issued as early as this month. However, Schreter said, "I don't think they're going to give up on that.". Additionally, CUPA-HR submitted commentsin response to the RPI based on a recent survey detailing members experiences with the Form I-9 verification process flexibilities. CUPA-HR filedcommentsin opposition to the Trump administrations regulations on the issue andin responseto the Biden administrations RFI. 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In fact, Walsh indicated in the June hearing that the DOL thinks the rule should be reviewedand possibly updatedregularly. p.usa-alert__text {margin-bottom:0!important;} 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. By Jill Desjean, NASFAA Policy & Federal Relations Staff. 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. Retrieved from, The U.S. Department of Labor has again extended its timeline for proposing a new salary threshold for overtime eligibility, this time to May, according to the agencys. Starting in June 2020, employees were required to return to work onsite full-time. As the fight in Congress and the court of public opinion continues with respect to the proposed legislation to raise the federal minimum wage supported by President Obama, the White House has announced broad proposed reforms to the Department of Labor (DOL) regulations defining the exemptions from overtime under the Fair Labor Standards Act (FLSA). Jan 23, 2023 | Neil Reichenberg, HRCI Contributing Writer. $("span.current-site").html("SHRM China "); #block-googletagmanagerfooter .field { padding-bottom:0 !important; } 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 most recent regulatory agenda set the date at May 2023. . .cd-main-content p, blockquote {margin-bottom:1em;} $(document).ready(function () { .paragraph--type--html-table .ts-cell-content {max-width: 100%;} When the economy is unstable, employers are faced with difficult decisions around staffing, pay and benefits. /*-->*/. Employers should carefully review all pay practices, exemptions from overtime, and potential FLSA liability in light of these potential changes. Rescind the 2021 Independent Contractor Rule. The DOL promised to consider this feedback and may make changes to its draft rule before publishing a final version. From March 2020 through June 2020, employees were required to work remotely four days per week due to the COVID-19 pandemic. Ruling on a narrow, but significant question, the US Supreme Court affirmed that the white . .usa-footer .grid-container {padding-left: 30px!important;} Matt Popovich. 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. Neither Arthur J. Gallagher & Co., nor its affiliates provide accounting, legal or tax advice. To request permission for specific items, click on the reuse permissions button on the page where you find the item. In May 2016, the Obama administrations DOL issued afinal ruleincreasing the salary threshold from $23,660 to $47,476 per year and imposed automatic updates to the threshold every three years. DOL had previously planned to release the proposed rule in October 2022. The proposal will likely amend the Trump administration's final . 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 . The overtime rule was first slated for April 2022 and then for October 2022, so another delay would not be unusual. OSHA aims to complete a final rule by September. The FTC stated that the proposed rule would apply to employees, independent contractors, and volunteers. The Department of Labor (DOL) The overtime threshold is a salary level used to determine which employees are eligible to receive overtime pay when they work over 40 hours in a single workweek. 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 proposed overtime rule will be published in May, according to the agenda, which lists the status of anticipated regulatory actions. According to FTC Chair Lina M. Khan, Noncompetes block workers from freely switching jobs, depriving them of higher wages and better working conditions, and depriving businesses of a talent pool that they need to build and expand. The FTC cited research showing that noncompete agreements restrict the mobility of impacted workers thus harming competition in the labor markets. Once proposed, stakeholders will have an opportunity to comment before the agency finalizes its rule. Topics covered: Culture, executive buy-in, discrimination, training, equal pay, and more. The new 2022 rule largely returns to the "economic realities" test. proposed changes. The site is secure. The exempt duties generally fall within those categories, and each category has different criteria: The salary level was last adjusted effective January 1, 2020 when it was raised to the $684 per week level (equivalent to $35,568 per year for a full-year worker). #block-googletagmanagerheader .field { padding-bottom:0 !important; } In publishing the proposed new rule . WASHINGTON The U.S. Department of Labor will publish a Notice of Proposed Rulemaking on Oct. 13 to help employers and workers determine whether a worker is an employee or an independent contractor under the Fair Labor Standards Act. Misclassification is a serious issue that . Author: Michael Cardman, XpertHR Senior Legal Editor. Please enable scripts and reload this page. In a case closely watched by the oil and gas industry, the United States Supreme Court ruled in Helix Entergy Solutions Group, Inc. v. Hewitt that an oil rig worker earning more than $200,000 a year was misclassified as exempt by his employer, in violation of the Fair Labor Standards Act (FLSA), and is entitled to unpaid overtime wages. .usa-footer .container {max-width:1440px!important;} 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. Marty Walsh, the Secretary of Labor indicated previously that the salary basis threshold is too low and as part of the review, the DOL will consider whether regular and automatic updates are needed. According to the agency's regulatory agenda, this proposed rule is expected to address how to implement the exemption of executive, administrative and professional employees from the Fair Labor . It is not intended to provide specific legal, tax or other professional advice. #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;} The proposed rule will advise businesses on implementing the exemption of bona fide executive, administrative, and professional employees from the minimum wage and overtime requirements of the Fair Labor Standards Act (FLSA). The .gov means its official. According to the FTC, this new rule could increase wages by nearly $300 billion annually and expand career opportunities for about 30 million Americans. By continuing to use our site or by closing this banner without changing your cookie settings, you agree to our use of cookies. Averaging of hours over two or more weeks is not permitted. 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. } The Equal Employment Opportunity Commission has settled a COVID discrimination case and also published for public comment its draft strategic enforcement plan. var temp_style = document.createElement('style'); . We anticipate the proposed new level will be higher. Neil Reichenberg is the former executive director of the International Public Management Association for Human Resources. Then the final rule would need to take effect no sooner than 60 days after it is published in the Federal Register, assuming it is classified as a major rule. 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. Find the latest news and members-only resources that can help employers navigate in an uncertain economy. The Act applies on a workweek basis. @media only screen and (min-width: 0px){.agency-nav-container.nav-is-open {overflow-y: unset!important;}} Members please Login here to view the article. The proposed rule would provide guidance on classifying workers and seeks to combat employee misclassification. DOL Plans Release of Overtime Rule in May In the most recent semi-annual regulatory agenda, the U.S. Department of Labor (DOL) announced that it plans to release in May the proposed salary basis threshold for overtime exemptions under the Fair Labor Standards Act (FLSA) for administrative, executive, and professional employees. .manual-search-block #edit-actions--2 {order:2;} While the specifics remain unknown, some labor law experts speculate that it will: Increase the weekly threshold from $684 to $900--$1,000. Feel free to contact us if you have questions about this matter. $("span.current-site").html("SHRM MENA "); Please confirm that you want to proceed with deleting bookmark. Require automatic future increases to the threshold. Different workweeks may be established for different employees or groups of employees. By: Jenny R. Yang February 28, 2023. 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. #block-googletagmanagerfooter .field { padding-bottom:0 !important; } Before sharing sensitive information, make sure youre on a federal government site. The move would have entitled millions more employees to overtime pay, economists estimated, but it was halted when a federal judge. Please understand that your communications with Locke Lord LLP through this website do not constitute or create an attorney-client relationship with Locke Lord LLP. .dol-alert-status-error .alert-status-container {display:inline;font-size:1.4em;color:#e31c3d;} 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. Comments on the proposed rule are due by March 10, 2023. 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). ol{list-style-type: decimal;} The proposed rule would provide guidance on classifying workers and seeks to combat employee misclassification. It is possible that DHS will use that feedback to develop and implement this NPRM. var currentLocation = getCookie("SHRM_Core_CurrentUser_LocationID"); 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. .usa-footer .container {max-width:1440px!important;} That salary threshold had been set at $23,600 ($455 per week) since 2004, and DOL sent shockwaves through the employment community when it proposed and finalized a rule to more than double . Learn more by reading fact sheets that cover a variety of overtime topics. According to the IRS, the standard mileage rate for business use is based on an annual study of the fixed and variable costs of operating an automobile. Let HR Dive's free newsletter keep you informed, straight from your inbox. 2023 Locke Lord LLP | Attorney Advertising, Employee Benefits & Executive Compensation, Environmental, Social and Governance (ESG). We help organizations develop a comprehensive understanding of state laws and regulations to inform investment across people strategies and operations. The California standards require that more than 50 percent of the employee's time be spent solely on performing exempt duties in orderto be classified as exempt, he noted. But they delayed it and are now targeting October 2022 as the release date. On June 15, 2012, theDHS established the DACA policy. Align the departments approach with courts FLSA interpretation and the economic reality test. Guidance materials about overtime topics, including an Employment Law Guide, Qs & As, guide to overtime laws in the states, and more. Copyright 2023 LexisNexis Risk Solutions Group. 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