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. #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 move would have entitled millions more employees to overtime pay, economists estimated, but it was halted when a federal judge. Last fall, the DOL said it would propose new overtime rules - which are expected to raise the minimum salary for most overtime-exempt employees and possibly update the . However, the district court temporarily stayed its order with respect to most individuals granted deferred action under the DACA policy on or before July 16, 2021, including with respect to their renewal requests. While the employer allowed other employees in her position to work from home, it denied her request and shortly thereafter terminated her employment. .manual-search ul.usa-list li {max-width:100%;} 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. Topics covered: HR management, compensation & benefits, development, HR tech, recruiting and much more. Please log in as a SHRM member. While details of the 2022 proposed changes are forthcoming, organizations should prepare now to address pending challenges and associated opportunities. 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. President Biden touted increasing the salary threshold throughout his presidential campaign. We also anticipate some proposed changes to the duties tests. 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. .usa-footer .container {max-width:1440px!important;} Let HR Dive's free newsletter keep you informed, straight from your inbox. DOL/Employee Benefits Security Administration (EBSA) The Notice of Proposed Rulemaking was originally slated for April 2022 but then delayed to October of that year. The Biden administration has signaled its desire to return to the approach attempted in 2016. Shannon Meade is executive director of Littler's Workplace Policy Institute in Washington, D.C. 2023 Littler. Lee Schreter, an attorney with Littler in Atlanta, said she wouldn't be surprised if the DOL tightens up the administrative exemption. CUPA-HR has engaged with DHS on the Form I-9 flexibilities through the pandemic. 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 U.S. Department of Labor (DOL) recently published its spring regulatory agenda containing a tentative date of October 2022 for a proposed overtime rule. There is no limit in the Act on the number of hours employees aged 16 and older may work in any workweek. @media only screen and (min-width: 0px){.agency-nav-container.nav-is-open {overflow-y: unset!important;}} Before sharing sensitive information, make sure youre on a federal government site. 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. .usa-footer .grid-container {padding-left: 30px!important;} It need not coincide with the calendar week, but may begin on any day and at any hour of the day. Misclassification is a serious issue that denies workers rights and protections under federal labor standards, promotes wage theft, allows certain employers to gain an unfair advantage over law-abiding businesses, and hurts the economy at-large. Although there are no legal implications regarding the administration's failure to issue the agenda in a timely manner, there are important considerations for the regulated community. It remains to be seen whether the DOL will follow its own timeline, however. 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 that number, upping the threshold to $47,476 threshold ($913 per week). 2023 Locke Lord LLP | Attorney Advertising, Employee Benefits & Executive Compensation, Environmental, Social and Governance (ESG). The courts blocked this proposal shortly before it was scheduled for implementation. Build specialized knowledge and expand your influence by earning a SHRM Specialty Credential. The DOL promised to consider this feedback and may make changes to its draft rule before publishing a final version. } 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. Conversely, there is nothing stopping the DOL from issuing new rules before its target dates, either. just days before it was set to take effect. brookstone therapeutic percussion massager with lcd screen; do nigel and jennifer whalley still own albury park Jan 23, 2023 | Neil Reichenberg, HRCI Contributing Writer. } This website uses cookies to understand your use of our website and to give you a better experience. Please log in as a SHRM member before saving bookmarks. Ultimately, Judge Amos Mazzant in the United States District Court for the Eastern District of Texas enjoined the new threshold from going into effect after determining the salary increase of more than 100% contravened Congresss intent by supplanting the job duties test and creating a de facto salary-only test. At the time, the DOL estimated that the $921/week threshold would make more than 4.2 million workers ineligible for a white-collar exemption and eligible for overtime pay. Updated October 25, 2022: The DOL has extended the comment period for this proposed rule until December 13, 2022. The integral factor, which considers whether the work is integral to the employers business, is also included. 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. USA August 24 2022. }. The FTC stated that the proposed rule would apply to employees, independent contractors, and volunteers. Averaging of hours over two or more weeks is not permitted. The .gov means its official. Neither Arthur J. Gallagher & Co., nor its affiliates provide accounting, legal or tax advice. 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. $('.container-footer').first().hide(); 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 . The salary basis threshold was increased in 2019 from $23,660/year to $35,568/year. 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. Shortly thereafter, President Donald Trump took office and DOL abandoned its defense of the rule. 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. (2015). Federal government websites often end in .gov or .mil. The new proposal is likely to be issued in the near future and could be issued as early as this month. 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. Most recently, DHS announced an additional extension of the Form I-9 flexibility guidance through October 31, 2022. On June 15, 2012, theDHS established the DACA policy. Sign up for our newsletter and get the latest to your inbox. Access a collection of interactive online tools and presentations that address overtime pay requirements. Revert to the longstanding interpretation of the economic reality factors. The proposed changes will impact Employers and employees. @media only screen and (min-width: 0px){.agency-nav-container.nav-is-open {overflow-y: unset!important;}} Must be a Paid Member or a Free Trial Member to Access Content. Generally, the rule applies to any salaried worker who does not supervise other workers and makes less than $684 a week . Guidance materials about overtime topics, including an Employment Law Guide, Qs & As, guide to overtime laws in the states, and more. $(document).ready(function () { Learn how SHRM Certification can accelerate your career growth by earning a SHRM-CP or SHRM-SCP. 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. On June 7, ICE sent its proposal to the Office of Information and Regulatory Affairs (OIRA). The agency already has missed its target for the overtime rule twice. Your session has expired. $("span.current-site").html("SHRM MENA "); 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. The department believes the new rule would preserve essential worker rights and provide consistency for regulated entities. Section 13(a)(1) of the FLSA, codified at 29 U.S.C. 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 site is secure. EEOC Seeks Comments on Strategic Enforcement Plan The Equal Employment Opportunity Commission (EEOC) has published for public comment, a draft Strategic Enforcement Plan. 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 . The Overtime Rule. The DOL has considered modifying the regulations in this regard a few times in recent yearsbut hasended up leaving the current tests alone. All rights reserved. Supreme Court: Salary, Not Daily Pay, Required for FLSA Overtime Exemptions. 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. 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.. The DOL plans to make the changes effective in 2023. 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. . 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. In the February NPRM, USDA provided only 32 days for stakeholder comment submissions on the proposal. If such an increase is proposed, it will impact millions of workers and almost certainly meet resistance in federal courts from private employers and business groups. 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. The law covers virtually every employer . From March 2020 through June 2020, employees were required to work remotely four days per week due to the COVID-19 pandemic. Your browser does not allow automatic adding of bookmarks. Colorado Whistleblower, Anti-Retaliation, Non-Interference, and Notice-Giving Rules ("Colorado WARNING Rules") 7 CCR 1103-11 Sandra Parker-Murray 11.01.2022; Brian Polovoy 11.02.2022; Prevailing Wage and Residency (PWR) Rules 7 CCR 1103-6 Ion Cotsapas 10.05.2022; Wage Protection Rules 7 CCR 1103-7 #block-googletagmanagerfooter .field { padding-bottom:0 !important; } In 2016, a proposed change would have moved the salary threshold from $455 per week ($23,660 annualized) to $913 per week ($47,476). President Joe Biden directed the DHS on Jan. 20, 2021, to take all appropriate actions to preserve and strengthen DACA, consistent with applicable law. 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. On July 16, 2021, the U.S. District Court for the Southern District of Texas vacated the June 2012 memorandum that created the DACA policy and permanently blocked the DHS from administering the DACA program and from reimplementing DACA without compliance with the Administrative Procedure Act. 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). The overtime rule was first slated for April 2022 and then for October 2022, so another delay would not be unusual. ET, Webinar 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. . .h1 {font-family:'Merriweather';font-weight:700;} The Division of Labor Standards protects all workers, including those that are undocumented or paid off the books, and ensures employers are following Labor Laws. Changes to overtime pay requirements have beenimplementedthrough regulations under both the Obama and Trump administrations. 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. When the economy is unstable, employers are faced with difficult decisions around staffing, pay and benefits. Feel free to contact us if you have questions about this matter. Procedures on voluntary recognitionof unions. 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. 2022: Fall 2022 Rulemaking Comments. In 2016, the Labor Department under President Obama had proposed a salary basis threshold of $47,476/year, which was invalidated by a District Court and the lawsuit was withdrawn by the Trump Administration. Been advocating for a tightening of the economic reality factors and associated.... June 2020, employees were Required to work from home, it denied her request and shortly thereafter, Donald! Issued in the Act on the Form I-9 flexibility guidance through October 31, 2022 of $ by...! important ; } Let HR Dive 's free newsletter keep you informed straight. A SHRM member before saving bookmarks its own timeline, however: HR,. President Donald Trump took office and DOL abandoned its defense of the rule executive director Littler... 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