proposed changes. USA August 24 2022. Congress must also have keen insight of the administration's regulatory plans to assess its budget requests and operations. Build specialized knowledge and expand your influence by earning a SHRM Specialty Credential. .table thead th {background-color:#f1f1f1;color:#222;} .paragraph--type--html-table .ts-cell-content {max-width: 100%;} Overtime Pay. Must be a Paid Member or a Free Trial Member to Access Content. For Long Island and Westchester County . 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 As the current minimum salary amount is $684/week, it is expected for DOL . Gallagher supports organizations with comprehensive solutions to include exemption review, compensation and classification structures, enhanced management of ongoing joint-employer challenges and implementation strategies. just days before it was set to take effect. The site is secure. 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"). CUPA-HR participated in all of the calls, expressing our concerns with the timing of the rulemaking as it relates to the ongoing challenges of the COVID-19 pandemic, a historically tight labor market, and increasing inflation. 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. On February 22, 2023, the final farm labor overtime regulations were adopted, codifying Commissioner Reardon's order adopting the recommendation of the Farm Laborers Wage Board to lower the current 60-hour threshold for overtime pay to 40 hours per week by January 1, 2032, allowing 10 years to phase in the new threshold. The DOL initially planned to issue this new proposal in April 2022. } 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. As an update, the April deadline has passed, but it is now anticipated that the DOL intends to propose new FLSA overtime rules this October. 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 . "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. The proposed changes will impact Employers and employees. The DOL plans to make the changes effective in 2023. p.usa-alert__text {margin-bottom:0!important;} 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. @media (max-width: 992px){.usa-js-mobile-nav--active, .usa-mobile_nav-active {overflow: auto!important;}} .usa-footer .container {max-width:1440px!important;} By continuing to use our site or by closing this banner without changing your cookie settings, you agree to our use of cookies. 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. The department believes the new rule would preserve essential worker rights and provide consistency for regulated entities. 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. As the fight in Congress and the court of public opinion continues with respect to the proposed legislation to raise the federal minimum wage supported by President Obama, the White House has announced broad proposed reforms to the Department of Labor (DOL) regulations defining the exemptions from overtime under the Fair Labor Standards Act (FLSA). Survey Participation and Information Templates, CUPA-HR Welcomes a New Board of Directors for 2022-23. The .gov means its official. United States Department of Labor Washington, DC 20210 Re: Overtime Regulations Proposed in the Fall 2021 Regulatory Agenda Dear Acting Administrator Looman: . 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. In . Members can get help with HR questions via phone, chat or email. else if(currentUrl.indexOf("/about-shrm/pages/shrm-mena.aspx") > -1) { 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. Salaried exempt employees have to earn at least the state thresholds because they are higher than the federal . The DHS has appealed the district court's decision. Align the departments approach with courts FLSA interpretation and the economic reality test. 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.. Restore the multifactor, totality-of-the-circumstances analysis to determine whether a worker is an employee or an independent contractor under the FLSA. "Thus, it is premature to make internal changes to pay policies in anticipation of the rulemaking. The new proposal is likely to be issued in the near future and could be issued as early as this month. .manual-search ul.usa-list li {max-width:100%;} Please purchase a SHRM membership before saving bookmarks. CUPA-HR sent a letter to USCIS Director Ur M. Jaddou asking for this additional extension. Comments on the draft plan must be submitted by February 9, 2023. Preventing and remedying systemic harassment including sexual harassment and harassment based on race, disability, age, national origin, religion, color, and sex (including pregnancy, sexual orientation, and gender identity). Please confirm that you want to proceed with deleting bookmark. 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. 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. 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). 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 . Any information you send to Locke Lord LLP through this website is on a non-confidential and non-privileged basis. According to DOL, the 40th percentile equated to $921 per week in 2013 and will be about $970 when the rule is . Learn how SHRM Certification can accelerate your career growth by earning a SHRM-CP or SHRM-SCP. 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. He is an attorney, a frequent writer and speaker on public policy and human resource issues, and an adjunct faculty member at George Mason University. 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. $("span.current-site").html("SHRM MENA "); 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 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). In fact, Walsh indicated in the June hearing that the DOL thinks the rule should be reviewedand possibly updatedregularly. Another increase has long been on the Biden administrations agenda, but it has not said what dollar figure it has in mind. ACTION: Notice of proposed rulemaking; request for comments. keystyle mmc corp login; thomson reuters drafting assistant user guide. The courts blocked this proposal shortly before it was scheduled for implementation. Digital platform companies like Uber, Lyft, Instacart, and DoorDash are waging increasingly aggressive campaigns to erode long-standing labor rights and consumer protections in states across the country. /*-->*/. 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. Require automatic future increases to the threshold. 2022: Fall 2022 Rulemaking Comments. 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 . Trumps DOL then revisited the threshold, agreeing that an increase was needed, but one far below the rate Democrats had planned. The FTC stated that the proposed rule would apply to employees, independent contractors, and volunteers. 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. The agenda says they will have proposed rule revisions and . 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. }); if($('.container-footer').length > 1){ This business model . } Though it marked the first increase to the FLSA's overtime threshold in over a . Many experts expect the DOL to set the salary threshold around $800 the mid-point between the current level and the proposed 2016 level. Guidance materials about overtime topics, including an Employment Law Guide, Qs & As, guide to overtime laws in the states, and more. An employee's workweek is a fixed and regularly recurring period of 168 hours seven consecutive 24-hour periods. .manual-search ul.usa-list li {max-width:100%;} Employment and Training Administration Strengthening Wage Protections for the Temporary and Permanent Employment of Certain Aliens in the United States, In October 2022, DOLs 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. The proposal will likely amend the Trump administrations final rule that was scheduled to take effect on November 14, 2022, but was subsequently vacated by a federal court in June 2021. The DOL's proposed overtime rule would raise the minimum weekly pay threshold legally required to exempt salaried workers from overtime pay from $455 per week to the 40th percentile of earnings for full-time salaried workers. An official website of the United States government. Among the subject matter priorities included in the draft plan are: IRS Increases Mileage Rates by Three Cents The Internal Revenue Service (IRS) advised that the optional standard mileage rates used to calculate the deductible costs of operating an automobile for business purposes increased by three cents to 65.5 cents per mile effective on January 1, 2023. Members please Login here to view the article. 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. .usa-footer .grid-container {padding-left: 30px!important;} Federal government websites often end in .gov or .mil. Thank you again for providing me the opportunity to testify on the Department of Labor final overtime rule, and I would be happy to answer any questions that any of the members may have. Once a sleepy area of employment law, the FLSAs regulations took the spotlight when the Obama administration announced its intent to update the rules floor for overtime eligibility. President Joe Biden directed the DHS on Jan. 20, 2021, to take all appropriate actions to preserve and strengthen DACA, consistent with applicable law. 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 . 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. The DOL promised to consider this feedback and may make changes to its draft rule before publishing a final version. The case hinged on the "salary basis" test for the white . DOL had previously planned to release the proposed rule in October 2022. 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. 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.. 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 . 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. $(document).ready(function () { By: Jenny R. Yang February 28, 2023. The federal overtime provisions are contained in the Fair Labor Standards Act (FLSA). Despite relying on the labor of millions of workers to provide their services, platform companies have established a business model on the premise that they employ no one. 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. Background on the new overtime proposal. How much of a salary increase the DOL will propose and if it will seek to index the threshold to some cost of living measure remains unknown at this time. 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. var currentUrl = window.location.href.toLowerCase(); Virtual & Washington, DC | February 26-28, 2023. Members may download one copy of our sample forms and templates for your personal use within your organization. . .manual-search-block #edit-actions--2 {order:2;} 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 https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely. An agency within the U.S. Department of Labor, 200 Constitution Ave NW Comments on the proposed rule are due by March 10, 2023. June 27, 2022. [CDATA[/* >