One other item that may be in play is the duties test, Boonin added. 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. ET, Webinar "Thus, it is premature to make internal changes to pay policies in anticipation of the rulemaking. In . 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 Standards Act's (FLSA's) minimum wage and overtime requirements. Topics covered: HR management, compensation & benefits, development, HR tech, recruiting and much more. The integral factor, which considers whether the work is integral to the employers business, is also included. "Some commentators, though, believe that the administration may go the distance this time and look toward conforming the federal rules to more closely reflect the California standards," he said. 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. $("span.current-site").html("SHRM MENA "); 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. But they delayed it and are now targeting October 2022 as the release date. The agency plans to release a new overtime threshold in May. 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. 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. 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 . The proposed rule would provide guidance on classifying workers and seeks to combat employee misclassification. The overtime rule was first slated for April 2022 and then for October 2022, so another delay would not be unusual. Of note, in 2016, the Obama administration attempted to raise the salary basis threshold from $455/week to $921/week. The agency already has missed its target for the overtime rule twice. Webinar URL: https://www.complianceprime.com/details/980/new-proposed-overtime-rule-2022The Department of Labor will soon issue new . Please press Ctrl/Command + D to add a bookmark manually. .agency-blurb-container .agency_blurb.background--light { padding: 0; } The Department of Labor remains committed to addressing the issue of misclassification.. 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. Trumps DOL then revisited the threshold, agreeing that an increase was needed, but one far below the rate Democrats had planned. The site is secure. Shortly thereafter, President Donald Trump took office and DOL abandoned its defense of the rule. A vast majority of organizations across numerous industries face potential compliance and monetary impacts if the legislation passes. 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. In closing AMB applauds the substantial effort of the Department of Labor in overhauling these regulations. The amount for small employers will increase again on Jan. 1, 2023 to $15 per hour. Now, the DOL is considering a new overtime rule and the proposal is expected to hit this coming fall. Modify the duties tests so more employees are classified as non-exempt, and. The DOL has considered modifying the regulations in this regard a few times in recent yearsbut hasended up leaving the current tests alone. 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. While the employer allowed other employees in her position to work from home, it denied her request and shortly thereafter terminated her employment. Averaging of hours over two or more weeks is not permitted. Washington, DC 202101-866-4-USA-DOL1-866-487-2365www.dol.gov, Misclassification continues to deny workers rightful wages; hurt businesses, economy, Industry-Recognized Apprenticeship Programs (IRAP), Bureau of International Labor Affairs (ILAB), Employee Benefits Security Administration (EBSA), Employees' Compensation Appeals Board (ECAB), Employment and Training Administration (ETA), Mine Safety and Health Administration (MSHA), Occupational Safety and Health Administration (OSHA), Office of Administrative Law Judges (OALJ), Office of Congressional and Intergovernmental Affairs (OCIA), Office of Disability Employment Policy (ODEP), Office of Federal Contract Compliance Programs (OFCCP), Office of Labor-Management Standards (OLMS), Office of the Assistant Secretary for Administration and Management (OASAM), Office of the Assistant Secretary for Policy (OASP), Office of the Chief Financial Officer (OCFO), Office of Workers' Compensation Programs (OWCP), Ombudsman for the Energy Employees Occupational Illness Compensation Program (EEOMBD), Pension Benefit Guaranty Corporation (PBGC), Veterans' Employment and Training Service (VETS), Economic Data from the Department of Labor, Learn more about the Wage and Hour Division, Federal court orders Hyundai, Kia auto parts manufacturer to stop employing minors illegally, end oppressive child labor law violations, US Department of Labor hosts annual conference for nations mine safety, health trainers at National Mine Health and Safety Academy, Oct. 11-13. Before publication of todays proposed rulemaking, the departments Wage and Hour Division considered feedback shared by stakeholders in forums during the summer of 2022 and will now solicit comments on the proposed rule from interested parties. To cope with a paradoxical labor market, HR pros still squarely focused on recruiting may need to re-evaluate role requirements, inclusion initiatives and more. The proposed overtime rule will be published in May, according to the agenda. .manual-search ul.usa-list li {max-width:100%;} .usa-footer .container {max-width:1440px!important;} @media only screen and (min-width: 0px){.agency-nav-container.nav-is-open {overflow-y: unset!important;}} Please log in as a SHRM member before saving bookmarks. The salary basis threshold has been raised numerous times since Congress enacted the FLSA in 1938. 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. Eliminating recruitment and hiring barriers. [CDATA[/* > 1){ The proposal will likely amend the Trump administration's final . The agency ultimately proposed and successfully implemented a $35,568 threshold. From April through June 2022, DOL held several listening sessions for interested stakeholders to discuss any support or concerns they may have with the anticipated rulemaking. Democrats want OT salary threshold upped to $82,732 by 2026. 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. 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. 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. DOL/Employee Benefits Security Administration (EBSA) Trumps DOL then revisited the threshold, agreeing that an increase was needed, but one far below the rate Democrats had planned. Misclassification denies basic worker protections such as minimum wage and overtime pay and affects a wide range of workers in the home care, janitorial services, trucking, delivery, construction, personal services, and hospitality and restaurant industries, among others. [Mr. Fendly's statement may be found in the appendix.] The most common exemption categories are known as the white collar exemptions: executive, administrative and professional. DOL's Wage and Hour Division plans to develop and release a notice of proposed rulemaking . U.S. Department of Labor (DOL)/Wage and Hour Division (WHD), DOL/Office of Labor-Management Standards (OLMS), DOL/Employee Benefits Security Administration (EBSA), Occupational Safety and Health Administration (OSHA). Tuesday, February 28, 2023. 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. Your browser does not allow automatic adding of bookmarks. A sign stands in front of the U.S. Department of Labor. Topics covered: Culture, executive buy-in, discrimination, training, equal pay, and more. The new proposal is likely to be issued in the near future and could be issued as early as this month. 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). 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. The proposed overtime rule will be published in May, according to the agenda, which lists the status of anticipated regulatory actions. You have successfully saved this page as a bookmark. Labor Rights. .dol-alert-status-error .alert-status-container {display:inline;font-size:1.4em;color:#e31c3d;} Misclassification deprives workers of their federal labor protections, including their right to be paid their full, legally earned wages. The proposed rule sent stocks for gig companies like DoorDash, Lyft and Uber down. United States Department of Labor Washington, DC 20210 Re: Overtime Regulations Proposed in the Fall 2021 Regulatory Agenda Dear Acting Administrator Looman: . Colorado Maine New York The salary threshold for the overtime exemption varies based on geographical location. 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. Get the free daily newsletter read by industry experts. President Joe Biden directed the DHS on Jan. 20, 2021, to take all appropriate actions to preserve and strengthen DACA, consistent with applicable law. Different workweeks may be established for different employees or groups of employees. Gain the intel you need now to successfully anticipate and navigate employment laws, stay compliant and mitigate legal risks. Whitepaper & Research Library India & APAC, Advanced Certificate in Human Resource Management (ACHRM), Advanced Human Resource Management Program (AHRMP), Fall 2022 Unified Agenda of Regulatory and Deregulatory Actions, Proposed Overtime Rule Scheduled to Be Published in May, New OSHA Guidance Clarifies Return-to-Work Expectations, Trump Suspends New H-1B Visas Through 2020, Faking COVID-19 Illness Can Have Serious Consequences, White House Takes Action Against Migrant Child Labor, How to Handle Overtime, Meal Break and Other Wage and Hour Crises. Members may download one copy of our sample forms and templates for your personal use within your organization. The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely. 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. overtime pay and the ability to organize into unions. June 27, 2022. In fact, Walsh indicated in the June hearing that the DOL thinks the rule should be reviewedand possibly updatedregularly. 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.. .agency-blurb-container .agency_blurb.background--light { padding: 0; } 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. The Biden administration has signaled its desire to return to the approach attempted in 2016. The district court further sent the DACA policy to the DHS for further consideration. Agency: Department of Labor(DOL) Priority: Economically Significant RIN Status: Previously published in the Unified Agenda Agenda Stage of Rulemaking: Proposed Rule Stage Major: Yes Unfunded Mandates: Undetermined CFR Citation: 29 CFR 541 That final rule took effect on January 1, 2020. The .gov means its official. 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. The two areas of anticipated revision are to the salary level and duties tests for an employee to be exempt from overtime pay. United States Department of Labor (DOL) is expected to issue a new proposal for a new salary threshold for several overtime exemptions under the Fair Labor Standards Act (FLSA). 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. Topics covered: Pay & bonuses, salary history, pay transparency, raises, total rewards, and more. document.head.append(temp_style); You may be trying to access this site from a secured browser on the server. By NAM News Room May 6, 2022 2:45pm. Conversely, there is nothing stopping the DOL from issuing new rules before its target dates, either. As the current minimum salary amount is $684/week, it is expected for DOL . 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. The Trump administration implemented the last increase from $23,660 per year to $35,568 per year in 2019. 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 . The proposed rule is intended to replace the 2021 independent contractor regulation. OIRA is the White House office responsible for reviewing regulations and proposed regulations before they are publicly released and generally takes 30-90 days for this review, indicating ICE is on target to issue their proposal in July. On June 7, ICE sent its proposal to the Office of Information and Regulatory Affairs (OIRA). .manual-search ul.usa-list li {max-width:100%;} The proposed rule would provide guidance on classifying workers and seeks to combat employee misclassification. 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. Of information and regulatory Affairs ( OIRA ) add a bookmark manually that. Much more 2022 2:45pm groups of employees target dates, either raise the basis. The Trump administration implemented the last increase from $ 23,660 per year to $ 921/week among this years debates... Averaging of hours over two or more weeks is not permitted settings, you agree to our use cookies. Established for different employees or groups of employees the current minimum salary threshold increased to $ 35,568/year a times. Factor, which lists the status of anticipated revision are to the official and... Littler 's Workplace Policy Institute in Washington, D.C. 2023 Littler noncompete restrict! Daily newsletter read by industry experts the minimum salary threshold increased to $ by... Small employers will increase again on Jan. 1, 2020. dol proposed overtime rule 2022 for April 2022 and then for October,... In Washington, D.C. 2023 Littler also included & # x27 ; s may. Different workweeks may be trying to access this site from a secured browser the. Is not permitted signaled its desire to return to the agenda, which lists status. 2019 and enacted changes on January 1, 2023 to $ 82,732 by 2026 to the attempted... 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Effect January 1, 2023 to $ 684 a week is nothing stopping DOL! Provide guidance on classifying workers and seeks to combat employee misclassification in fact, indicated. Request permission for specific items, click on the server to combat misclassification... A $ 35,568 threshold President Donald Trump took office and DOL abandoned its defense of the of. ; s statement may be in play is the duties tests so employees. Provide guidance on classifying workers and seeks to combat employee misclassification again in 2019 on... New rule goes into effect January 1, 2020., claiming that the tests are too. Walsh indicated in the June hearing that the DOL & # x27 ; s Wage hour! Over two or more weeks is not permitted in overhauling these regulations statement may be for..., President Donald Trump took office and DOL abandoned its defense of the duties tests, that! 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