#block-googletagmanagerheader .field { padding-bottom:0 !important; } In closing AMB applauds the substantial effort of the Department of Labor in overhauling these regulations. Many experts expect the DOL to set the salary threshold around $800 the mid-point between the current level and the proposed 2016 level. 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.". In . Congress must also have keen insight of the administration's regulatory plans to assess its budget requests and operations. The new standard will revise the 2020 Trump Administrations final rule, which reversed the Obama-era NLRB decision in the 2015Browning-Ferris Industriescase and established that an entity can only be a joint employer if it actually exercises control over the essential terms and conditions of another employers employees. .table thead th {background-color:#f1f1f1;color:#222;} .manual-search ul.usa-list li {max-width:100%;} Eliminating recruitment and hiring barriers. The agency plans to release a new overtime threshold in May. Joint-employer status under the National Labor Relations Act. According to DOL, the 40th percentile equated to $921 per week in 2013 and will be about $970 when the rule is . Author: Michael Cardman, XpertHR Senior Legal Editor. 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. Averaging of hours over two or more weeks is not permitted. 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. "Snowy Labor Department Sign" [photograph]. Reposted with permission. Background on the new overtime proposal. 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. USA August 24 2022. 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. Modify the duties tests so more employees are classified as non-exempt, and. Your browser does not allow automatic adding of bookmarks. Labor Department's New Overtime Rule Will Ruffle Feathers - Speaking of overtime, the DOL has indicated it will issue a new federal regulation transforming the overtime rule by April 2022, and . 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 . One other item that may be in play is the duties test, Boonin added. -1) { 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 . To request permission for specific items, click on the reuse permissions button on the page where you find the item. 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. This final rule went into effect January 1, 2020, and it remains in effect today. The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely. overtime pay and the ability to organize into unions. Starting in June 2020, employees were required to return to work onsite full-time. 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. Democrats want OT salary threshold upped to $82,732 by 2026. 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 . 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. 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. 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. By continuing to use our site or by closing this banner without changing your cookie settings, you agree to our use of cookies. 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. However, court challenges prevented the rule from taking effect and it was permanentlyenjoinedin September 2017. 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 FLSA does not require overtime pay for work on Saturdays, Sundays, holidays, or regular days of rest, unless overtime is worked on such days. CUPA-HR has engaged with DHS on the Form I-9 flexibilities through the pandemic. /*-->*/. | 2 p.m. Restore the multifactor, totality-of-the-circumstances analysis to determine whether a worker is an employee or an independent contractor under the FLSA. Please confirm that you want to proceed with deleting bookmark. Tuesday, February 28, 2023. An official website of the United States government. Separately, the National Labor Relations Board said it plans to propose in February 2022 an update to rules that govern when two or more employers are jointly liable . An employee's workweek is a fixed and regularly recurring period of 168 hours seven consecutive 24-hour periods. 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 order for an employee to be exempt, the employee must be paid a salary of at least $684 per week, and must meet certain duties tests. 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. 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. Federal government websites often end in .gov or .mil. Learn more about the Wage and Hour Division. } 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. These exemptions are commonly referred to as the white-collar or EAP exemptions. A sign stands in front of the U.S. Department of Labor. In December 2022, the Department of Agriculture (USDA) plans to re-propose an NPRM that was previously issued in February 2022 and included controversial provisions that would require federal contractors on projects procured by the agency to certify their compliance with dozens of federal and state labor laws and executive orders. For example, the lack of transparency in knowing what to expect makes it more difficult to hold the administrative state accountable for its plans. 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. Revert to the longstanding interpretation of the economic reality factors. To find out more about our use of cookies and how to change your settings, please go to our Privacy Policy. The NPRM proposes a framework more consistent with longstanding judicial precedent on which employers have relied to classify workers as employees or independent contractors under the FLSA. 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. The proposed rule sent stocks for gig companies like DoorDash, Lyft and Uber down. The salary basis threshold was increased in 2019 from $23,660/year to $35,568/year. 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. $('.container-footer').first().hide(); Now, the DOL is considering a new overtime rule and the proposal is expected to hit this coming fall. The following policy statements* will be included in your export: *Use of this material is governed by XpertHRs Terms and Conditions. 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 . 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. Pay transparency, employee privacy, compassionate leadership and political biases are among this years hot debates, according to labor experts. Protecting vulnerable workers and persons from underserved communities from employment discrimination. 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. Topics covered: Employee learning, training, onboarding, mentoring, career development and more. 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 DOL promised to consider this feedback and may make changes to its draft rule before publishing a final version. More than 100 business and industry groups are urging the U.S. Department of Labor to seek public input before it releases a highly anticipated rule to update overtime pay regulations that is expected to extend time-and-a-half wages to more workers. var currentLocation = getCookie("SHRM_Core_CurrentUser_LocationID"); Every employer of employees subject to the Fair Labor Standards Act's minimum wage provisions must post, and keep posted, a notice explaining the Act in a conspicuous place in all of their establishments. Let HR Dive's free newsletter keep you informed, straight from your inbox. Overtime Proposed Rule Release Planned in May, ISO/TC 260 HR Management and HRCI Global Standards Leadership, HRCI Certification for Military HR Personnel. [Mr. Fendly's statement may be found in the appendix.] .usa-footer .grid-container {padding-left: 30px!important;} The key labor and employment regulatory actions included in the fall agenda are listed below. OSHA aims to complete a final rule by September. When the economy is unstable, employers are faced with difficult decisions around staffing, pay and benefits. The proposed overtime rule will be published in May, according to the agenda, which lists the status of anticipated regulatory actions. The materials and information included in the XpertHR service are provided for reference purposes only. Review the laws and regulations that govern overtime in the United States. 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. By: Jenny R. Yang February 28, 2023. The U.S. Department of Labor in September 2019 updated the federal overtime rules regarding executive, administrative, and professional workers. Washington, DC 202101-866-4-US-WAGE1-866-487-9243, Administrator Interpretations, Opinion and Ruling Letters, Resources for State and Local Governments. Different workweeks may be established for different employees or groups of employees. The department believes the new rule would preserve essential worker rights and provide consistency for regulated entities. From March 2020 through June 2020, employees were required to work remotely four days per week due to the COVID-19 pandemic. Minimum Wages Are On the Rise in Several States. Comments on the proposed rule are due by March 10, 2023. 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. 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. 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. 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. Topics covered: Pay & bonuses, salary history, pay transparency, raises, total rewards, and more. Your session has expired. ET, Presented by studioID and Express Employment Professionals, The comprehensive list of HR trends to watch in 2023, Faith groups ask SCOTUS to overturn religious accommodation precedent, Biden to appoint Julie Su as Labor Secretary, Interpreting the FMLA, one case at a time, Quiet Black History Month a warning sign, DEI pros say, Everything employers must know on employee development, Boost Employee Engagement with Small Moments of Joy at Work, Winning the War for Talent: Why On-Demand Pay Is Becoming the Must-Have Benefit to Get and Keep the Best Employees, Diversity exec Saraswati resigns amid claims she lied about her race, People arent getting the COVID booster. , administrative, and it remains in effect today is not permitted 2019 from $ to! 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