Members may download one copy of our sample forms and templates for your personal use within your organization. Let HR Dive's free newsletter keep you informed, straight from your inbox. 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. As the current minimum salary amount is $684/week, it is expected for DOL . Rescind the 2021 Independent Contractor Rule. Shortly thereafter, President Donald Trump took office and DOL abandoned its defense of the rule. The key labor and employment regulatory actions included in the fall agenda are listed below. Overtime Pay. .manual-search-block #edit-actions--2 {order:2;} While it is unclear whether the December NPRM will include the blacklisting language again, the abstract of the re-proposal states that the new proposed rule would be responsive to the comments received on our February 2022 proposal.. 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. There is no limit in the Act on the number of hours employees aged 16 and older may work in any workweek. The new proposal, which is included in the Departments Statement of Regulatory Priorities, will take into consideration the feedback it received in response to aRequest for Information (RFI) on data and methods for determining prevailing wage levels to ensure fair wages and strengthen protections for foreign and U.S. workers.. DOL had previously planned to release the proposed rule in October 2022. In the Fall 2021 Regulatory Agenda, WHD announced their intention to move forward with the NPRM with the goal to update the salary level requirement of the section 13(a)(1) exemption [under the FLSA].. 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. 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 . We help organizations develop a comprehensive understanding of state laws and regulations to inform investment across people strategies and operations. CUPA-HR filedcommentsin opposition to the Trump administrations regulations on the issue andin responseto the Biden administrations RFI. Shannon Meade is executive director of Littler's Workplace Policy Institute in Washington, D.C. 2023 Littler. 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. #block-googletagmanagerheader .field { padding-bottom:0 !important; } The proposed rule would provide guidance on classifying workers and seeks to combat employee misclassification. While the specifics remain unknown, some labor law experts speculate that it will: Increase the weekly threshold from $684 to $900--$1,000. The DOL has set a new deadline for overtime threshold increases. Track your regular work hours, break time, and overtime hours. var temp_style = document.createElement('style'); The courts blocked this proposal shortly before it was scheduled for implementation. Jan 23, 2023 | Neil Reichenberg, HRCI Contributing Writer. The division encourages all stakeholders to participate in the regulatory process. 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 new proposal is likely to be issued in the near future and could be issued as early as this month. The U.S. Department of Labor (DOL) announced in its spring regulatory agenda in mid-June that a proposed new overtime rule will be released later this year. Topics covered: Culture, executive buy-in, discrimination, training, equal pay, and more. Colorado Maine New York The salary threshold for the overtime exemption varies based on geographical location. A Davis-Bacon Act final rule is now scheduled for December. 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. . 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. State law requires [] represent to a worker, under certain circumstances, that the worker is subject to a noncompete agreement. The deadline to announce such changes was initially set for April 2022 but has since seen several delays. Start Preamble AGENCY: Wage and Hour Division, Department of Labor. Salaried exempt employees have to earn at least the state thresholds because they are higher than the federal . Build specialized knowledge and expand your influence by earning a SHRM Specialty Credential. Please log in as a SHRM member before saving bookmarks. p.usa-alert__text {margin-bottom:0!important;} 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 salary basis threshold was increased in 2019 from $23,660/year to $35,568/year. Joint-employer status under the National Labor Relations Act. Democrats want OT salary threshold upped to $82,732 by 2026. The most common exemption categories are known as the white collar exemptions: executive, administrative and professional. "Snowy Labor Department Sign" [photograph]. var currentLocation = getCookie("SHRM_Core_CurrentUser_LocationID"); 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. Changes to overtime pay requirements have beenimplementedthrough regulations under both the Obama and Trump administrations. Assist with the proper classification of employees and independent contractors under the FLSA. Gallagher supports organizations with comprehensive solutions to include exemption review, compensation and classification structures, enhanced management of ongoing joint-employer challenges and implementation strategies. 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. Regardless of the ultimate increase in the salary level, employers who rely on the white-collar exemptions should be on notice of potential changes. 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. } Topics covered: Talent acquisition, diversity and inclusivity in hiring, employer branding, performance evaluations and more. 1){ 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. .usa-footer .grid-container {padding-left: 30px!important;} All rights reserved. The Act applies on a workweek basis. In fact, Walsh indicated in the June hearing that the DOL thinks the rule should be reviewedand possibly updatedregularly. Comments on the proposed rule are due by March 10, 2023. #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;} 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. 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. Pay transparency, employee privacy, compassionate leadership and political biases are among this years hot debates, according to labor experts. More than 54,000 people submitted comments on the rule. The Department of Labor's Wage and Hour Division is expected to propose new rules on independent contractor classification and overtime entitlement requirements in the . Members can get help with HR questions via phone, chat or email. The overtime salary threshold limits will increase for the following states: California To qualify for the overtime exemption, licensed physicians and surgeons must earn at least $91.07 per hour. 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 On Jan. 4, the Biden administration released its long-awaitedFall 2022 Unified Agenda of Regulatory and Deregulatory Actions. . 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 Standards Act's (FLSA) minimum wage and overtime . Therefore, do not send or include any information in your email that you consider to be confidential or privileged. 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. Access a collection of interactive online tools and presentations that address overtime pay requirements. 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. Affiliate of the Society for Human Resource Management, Home Blog 2022 DOLS PROPOSED OVERTIME RULE. 2022. 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. The two areas of anticipated revision are to the salary level and duties tests for an employee to be exempt from overtime pay. The agency plans to release a new overtime threshold in May. Though it marked the first increase to the FLSA's overtime threshold in over a . 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. Neil Reichenberg is the former executive director of the International Public Management Association for Human Resources. Oct 11 2022 10:37 AM EDT Updated Tue, . @media (max-width: 992px){.usa-js-mobile-nav--active, .usa-mobile_nav-active {overflow: auto!important;}} View our privacy policy, privacy policy (California), cookie policy, supported browsers and access your cookie settings. These factors include the investment, control and opportunity for profit or loss factors. $("span.current-site").html("SHRM MENA "); In the February NPRM, USDA provided only 32 days for stakeholder comment submissions on the proposal. [CDATA[/* >*/. Before sharing sensitive information, make sure youre on a federal government site. In November 2019, before it could take effect, a federal judge in Texas enjoined the new overtime rule on a nationwide basis, declaring it "unlawful.". 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. The district court did this partly based on its conclusion that the June 2012 memorandum announced a legislative rule that required notice-and-comment rulemaking. proposed changes. temp_style.textContent = '.ms-rtestate-field > p:first-child.is-empty.d-none, .ms-rtestate-field > .fltter .is-empty.d-none, .ZWSC-cleaned.is-empty.d-none {display:block !important;}'; Federal government websites often end in .gov or .mil. When finalized, the plan will set forth the EEOCs enforcement priorities. Another item on the list of DOL priorities may be the creation of an automatic annual or periodic increase to the salary level by indexing it to the consumer price index or another economic indicator so that the amount will increase without the DOL having to undertake formal rulemaking. Once proposed, stakeholders will have an opportunity to comment before the agency finalizes its rule. 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. The proposal is expected to be issued in the near future. | 2 p.m. Biden's DOL may seek to increase the threshold even greater than the 2016 proposal under Obama. The National Labor Relations Board (NLRB) indicated in the spring regulatory agenda its intention to consider addressing the following topics using the rulemaking process in the future: The board announced it would be revising the union representation election procedureswith a focus on the amendments issued in 2020. Proposed overtime rule will be published in may for Human Resource Management, Home 2022! Is now scheduled for implementation noncompete agreements restrict the mobility of impacted thus. Information, make sure youre on a recent survey detailing members experiences with the Form I-9 process. Regulations on the white-collar exemptions should be on notice of potential changes, the! Return to the RPI based on geographical location var temp_style = document.createElement ( 'style ' ) ; the courts this... 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