In . The two areas of anticipated revision are to the salary level and duties tests for an employee to be exempt from overtime pay. To request permission for specific items, click on the reuse permissions button on the page where you find the item. The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely. Members can get help with HR questions via phone, chat or email. $("span.current-site").html("SHRM MENA "); Oct 11 2022 10:37 AM EDT Updated Tue, . While the specifics remain unknown, some labor law experts speculate that it will: Increase the weekly threshold from $684 to $900--$1,000. The integral factor, which considers whether the work is integral to the employers business, is also included. The most recent regulatory agenda set the date at May 2023. . Lee Schreter, an attorney with Littler in Atlanta, said she wouldn't be surprised if the DOL tightens up the administrative exemption. Though it marked the first increase to the FLSA's overtime threshold in over a . Please purchase a SHRM membership before saving bookmarks. $('.container-footer').first().hide(); Need help with a specific HR issue like coronavirus or FLSA? 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. .table thead th {background-color:#f1f1f1;color:#222;} The proposed rule sent stocks for gig companies like DoorDash, Lyft and Uber down. To find out more about our use of cookies and how to change your settings, please go to our Privacy Policy. Procedures on voluntary recognitionof unions. 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. While details of the 2022 proposed changes are forthcoming, organizations should prepare now to address pending challenges and associated opportunities. 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. The site is secure. In the spring regulatory agenda, the U.S. Department of Homeland Security (DHS) announced that it plans to issue a final rule on Deferred Action for Childhood Arrivals (DACA) in August. Please press Ctrl/Command + D to add a bookmark manually. EEOC Seeks Comments on Strategic Enforcement Plan The Equal Employment Opportunity Commission (EEOC) has published for public comment, a draft Strategic Enforcement Plan. The DOL plans to make the changes effective in 2023. The division encourages all stakeholders to participate in the regulatory process. The department said in the regulatory agenda that "the danger faced by health care workers continues to be of the highest concern and measures to prevent the spread of COVID-19 are still needed to protect them." 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. Matt Popovich. 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.". These changes moved the threshold to $684 per week ($35,568 annualized) and allowed for up to 10% of non-discretionary bonuses to satisfy threshold requirements. Regulatory agenda lists the status of anticipated regulatory actions. DOL/Employee Benefits Security Administration (EBSA) The following policy statements* will be included in your export: *Use of this material is governed by XpertHRs Terms and Conditions. Overtime Proposed Rule Release Planned in May, ISO/TC 260 HR Management and HRCI Global Standards Leadership, HRCI Certification for Military HR Personnel. The DHS has appealed the district court's decision. NAM Vice President of Infrastructure, Innovation and Human Resources Policy Robyn Boerstling joined us to explain what's happening. The proposal will likely amend the Trump administration's final . 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. Once proposed, stakeholders will have an opportunity to comment before the agency finalizes its rule. 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. Topics covered: Employee learning, training, onboarding, mentoring, career development and more. By continuing to use our site or by closing this banner without changing your cookie settings, you agree to our use of cookies. Therefore, do not send or include any information in your email that you consider to be confidential or privileged. Please confirm that you want to proceed with deleting bookmark. Conversely, there is nothing stopping the DOL from issuing new rules before its target dates, either. Labor Rights. Employees paid below that figure must receive time-and-one-half their regular rate of pay when they work more than 40 hours in a workweek. 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). For example, the lack of transparency in knowing what to expect makes it more difficult to hold the administrative state accountable for its plans. The deadline to announce such changes was initially set for April 2022 but has since seen several delays. The U.S. Department of Labor in September 2019 updated the federal overtime rules regarding executive, administrative, and professional workers. 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. June 27, 2022. 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 . 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 . "Snowy Labor Department Sign" [photograph]. Overtime Pay. @media only screen and (min-width: 0px){.agency-nav-container.nav-is-open {overflow-y: unset!important;}} 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. 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). $(document).ready(function () { The DOL initially planned to issue this new proposal in April 2022. The new 2022 rule largely returns to the "economic realities" test. Gain the intel you need now to successfully anticipate and navigate employment laws, stay compliant and mitigate legal risks. 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 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. Topics covered: National employment laws, harassment, accommodations, training, and more. ET, Webinar Copyright 2023 HRCI. By: Jenny R. Yang February 28, 2023. On Jan. 4, the Biden administration released its long-awaitedFall 2022 Unified Agenda of Regulatory and Deregulatory Actions. Colorado Maine New York The salary threshold for the overtime exemption varies based on geographical location. overtime pay and the ability to organize into unions. Your session has expired. That final rule took effect on January 1, 2020. The FTC stated that the proposed rule would apply to employees, independent contractors, and volunteers. 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. From March 2020 through June 2020, employees were required to work remotely four days per week due to the COVID-19 pandemic. 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 . Misclassification is a serious issue that . 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. /*-->*/. .agency-blurb-container .agency_blurb.background--light { padding: 0; } Your session has expired. 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"). Members may download one copy of our sample forms and templates for your personal use within your organization. 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. .dol-alert-status-error .alert-status-container {display:inline;font-size:1.4em;color:#e31c3d;} For questions or additional information, contact Reichenberg atneilreichenberg@yahoo.com. There is no limit in the Act on the number of hours employees aged 16 and older may work in any workweek. The policy directed U.S. Gallagher supports organizations with comprehensive solutions to include exemption review, compensation and classification structures, enhanced management of ongoing joint-employer challenges and implementation strategies. Federal government websites often end in .gov or .mil. Washington, DC 202101-866-4-US-WAGE1-866-487-9243, Administrator Interpretations, Opinion and Ruling Letters, Resources for State and Local Governments. On October 11, 2022, the U.S. Department of Labor (DOL) unveiled a new proposed rule that could make it more difficult for workers to be classified as independent contractors under the Fair Labor Standards Act (FLSA). Wage and Hour Division Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales and Computer Employees, According to the Regulatory Agenda, the Department of Labor (DOL)s Wage and Hour Division (WHD) is now planning to release a Notice of Proposed Rulemaking (NPRM) to address changes to the Fair Labor Standards Act (FLSA)s overtime pay requirements in October 2022. Last fall, the Department of Labor (DOL) published its 2021 regulatory priorities, which included plans to update the top salary level that would qualify for exemption from overtime pay (known as the "white collar exemption") under the Fair Labor . The proposed changes will impact Employers and employees. Updated October 25, 2022: The DOL has extended the comment period for this proposed rule until December 13, 2022. The agency plans to release a new overtime threshold in May. This spring, the U.S. Department of Labor (DOL) is expected to announce recommended changes related to employee salary for overtime rules as part of the Fair Labor Standards Act (FLSA). Existing noncompete agreements would need to be rescinded and workers informed that they are no longer in effect. An HR Advisor is here to help by email, live chat, or phone. Federal government websites often end in .gov or .mil. In closing AMB applauds the substantial effort of the Department of Labor in overhauling these regulations. 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. 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. . 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. When the economy is unstable, employers are faced with difficult decisions around staffing, pay and benefits. .paragraph--type--html-table .ts-cell-content {max-width: 100%;} 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. An official website of the United States government. United States Department of Labor Washington, DC 20210 Re: Overtime Regulations Proposed in the Fall 2021 Regulatory Agenda Dear Acting Administrator Looman: . The courts blocked this proposal shortly before it was scheduled for implementation. 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 Act applies on a workweek basis. } The Trump administration withdrew the 2016 proposal and proposed a lesser increase to $35,563, which was adopted in March 2019. According to the EEOCs lawsuit, Ronisha Moncrief worked for ISS Facility Services, Inc. as a health and safety manager. Many in the business community believe that current hiring and retention issues, supply chain disruptions, and inflationary pressures are all reasons why the DOL should not proceed with a rulemaking.". 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 . The US Department of Labor (DOL) now intends to propose new Fair Labor Standards Act (FLSA) overtime rules this October, six months later than originally planned. var temp_style = document.createElement('style'); 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. 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. 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. Track your regular work hours, break time, and overtime hours. 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). Agendas are generally released in the fall and spring and set target dates for each agency and sub-agencys regulatory actions for the coming year. 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, Webinar var currentUrl = window.location.href.toLowerCase(); A vast majority of organizations across numerous industries face potential compliance and monetary impacts if the legislation passes. 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. DHS has provided temporary flexibility in the Form I-9 verification process since the beginning of the COVID-19 pandemic. Supreme Court: Salary, Not Daily Pay, Required for FLSA Overtime Exemptions. * /, please go to our of. Often end in.gov or.mil proposed, stakeholders will have an to... 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And how to change your settings, you agree to our use of cookies ensures you! S final employees aged 16 and older May work in any workweek beginning of the 2022 proposed changes are,! Realities & quot ; test the FTC stated that the proposed rule until December 13, 2022 that they no... Agree to our Privacy Policy January 1, 2020 request permission for specific items, click on the where... And Deregulatory actions health and safety manager you agree to our Privacy Policy in 2023 HR like... Website and that any information in your email that you want to proceed with deleting bookmark find out about. Its long-awaitedFall 2022 Unified agenda of regulatory and Deregulatory actions in May, ISO/TC 260 HR Management and HRCI Standards!, employers are faced with difficult decisions around staffing, pay and the ability to organize into unions for... 0 ; } your session has expired, 2020 // ensures that you connecting! 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