Before sharing sensitive information, make sure youre on a federal government site. 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. Rather than appeal the judge's decision, which was criticized by many unions and worker advocates, the Trump administration proposed a new rule in 2019 that elevated the overtime wage . .paragraph--type--html-table .ts-cell-content {max-width: 100%;} DOL had previously planned to release the proposed rule in October 2022. While the employer allowed other employees in her position to work from home, it denied her request and shortly thereafter terminated her employment. The two areas of anticipated revision are to the salary level and duties tests for an employee to be exempt from overtime pay. The new proposal is likely to be issued in the near future and could be issued as early as this month. DOL had previously planned to release the proposed rule in October 2022. United States Department of Labor Washington, DC 20210 Re: Overtime Regulations Proposed in the Fall 2021 Regulatory Agenda Dear Acting Administrator Looman: . Before the Fifth Circuit reviewed Judge Mazzants decision, the Trump administration rescinded the rule and raised the salary threshold to the current $684/week standard. Please press Ctrl/Command + D to add a bookmark manually. 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. 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. CUPA-HR sent a letter to USCIS Director Ur M. Jaddou asking for this additional extension. 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. @media (max-width: 992px){.usa-js-mobile-nav--active, .usa-mobile_nav-active {overflow: auto!important;}} .dol-alert-status-error .alert-status-container {display:inline;font-size:1.4em;color:#e31c3d;} Employers should carefully review all pay practices, exemptions from overtime, and potential FLSA liability in light of these potential changes. The agenda says they will have proposed rule revisions and . 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 According to the EEOCs lawsuit, Ronisha Moncrief worked for ISS Facility Services, Inc. as a health and safety manager. "If any of these issues make their way into new regulations in any significant way, litigation is assured.". The overtime rule was first slated for April 2022 and then for October 2022, so another delay would not be unusual. $("span.current-site").html("SHRM MENA "); Members may download one copy of our sample forms and templates for your personal use within your organization. The .gov means its official. While employers should be monitoring these potential changes, the regulatory process is still in the early stages, said Jim Plunkett, an attorney with Ogletree Deakins in Washington, D.C. "At this time, stakeholders do not even know what changes the DOL will propose, much less finalize," he said. #block-googletagmanagerfooter .field { padding-bottom:0 !important; } DOL's Wage and Hour Division plans to develop and release a notice of proposed rulemaking . .manual-search-block #edit-actions--2 {order:2;} Before sharing sensitive information, make sure youre on a federal government site. 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). #block-googletagmanagerheader .field { padding-bottom:0 !important; } Access a collection of interactive online tools and presentations that address overtime pay requirements. .table thead th {background-color:#f1f1f1;color:#222;} The DOL promised to consider this feedback and may make changes to its draft rule before publishing a final version. .table thead th {background-color:#f1f1f1;color:#222;} 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. The law covers virtually every employer . Copyright 2023 LexisNexis Risk Solutions Group. Track your regular work hours, break time, and overtime hours. Of note, in 2016, the Obama administration attempted to raise the salary basis threshold from $455/week to $921/week. As an FLSA refresher, to meet the criteria for exemption from overtime, an employee typically must pass the standard of two "tests": The first test centers on the employee's responsibilities in the organization. Most recently, DHS announced an additional extension of the Form I-9 flexibility guidance through October 31, 2022. Trumps DOL then revisited the threshold, agreeing that an increase was needed, but one far below the rate Democrats had planned. The Act applies on a workweek basis. Salaried exempt employees have to earn at least the state thresholds because they are higher than the federal . A final rule on improving tracking of workplace injuries and illnesses is slated for December, as well. 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. 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. 213(a)(1), exempts any employee employed in a bona fide executive, administrative, or professional capacity or in the capacity of outside salesman (as such terms are defined and delimited from time to time by regulations of the Secretary, subject to the provisions of the [Administrative Procedure Act.]) Monday, November 7, 2022. While that guidance is onlytemporary, DHS issued aRequest for Public Input (RPI) on October 26, 2021, to determine whether those flexibilities should be kept in place permanently. The U.S. Department of Labor in September 2019 updated the federal overtime rules regarding executive, administrative, and professional workers. 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. .usa-footer .container {max-width:1440px!important;} However, Schreter said, "I don't think they're going to give up on that.". Please enable scripts and reload this page. Please log in as a SHRM member before saving bookmarks. A vast majority of organizations across numerous industries face potential compliance and monetary impacts if the legislation passes. These changes moved the threshold to $684 per week . Topics covered: HR management, compensation & benefits, development, HR tech, recruiting and much more. Trumps DOL then revisited the threshold, agreeing that an increase was needed, but one far below the rate Democrats had planned. In October 2022, DOL's 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.". 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.. Gallagher supports organizations with comprehensive solutions to include exemption review, compensation and classification structures, enhanced management of ongoing joint-employer challenges and implementation strategies. 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. High on the DOL's list of priorities with the proposed overtime rule will be adjusting the salary level, possibly increasing it from its current annualized rate of $35,568, noted Robert Boonin, an attorney with Dykema in Ann Arbor, Mich. "There's certainly pressure to bring the amount to as high as the $47,476 annualized amount that was enjoined by a court in 2016, but many advocates are seeking even higher levels, from $62,000 to over $80,000 per year," he said. New DOL Overtime Threshold in 2022. /*-->*/. The yet-to-be proposed rule is expected to be unveiled in May 2023. 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. 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. .agency-blurb-container .agency_blurb.background--light { padding: 0; } Employers can change that, Twin Cities hospital workers call out racism, demand change from employers, Top 10 Workplace Trends for Thriving Work Environments, Caregiving Support: A Smart Investment for Employers in an Uncertain Economy, 5 Workplace Gaps Employers Cant Afford to Ignore, Top Compensation Sins HR Execs Must Avoid, Rethinking Population Health and the Intersection of the Primary Care Experience, NLRBs severance ruling has broad implications for employers. While this aspect of the exemption rules is not anticipated to change with the 2022 proposed rule changes, the duties test is important to remember when considering the classification of a particular role. The Trump administration withdrew the 2016 proposal and proposed a lesser increase to $35,563, which was adopted in March 2019. Do you need help with your HR questions? 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). 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 May goal represents a second delay. The materials and information included in the XpertHR service are provided for reference purposes only. Fair Labor Standards Act The FLSA establishes minimum wage, overtime pay, and payday standards, in addition to recordkeeping obligations . For Long Island and Westchester County . The Overtime Rule. 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). Different workweeks may be established for different employees or groups of employees. Learn how SHRM Certification can accelerate your career growth by earning a SHRM-CP or SHRM-SCP. 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. 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. 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 move would have entitled millions more employees to overtime pay, economists estimated, but it was halted when a federal judge enjoined the rule just days before it was set to take effect. 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 . In fact, Walsh indicated in the June hearing that the DOL thinks the rule should be reviewedand possibly updatedregularly. $("span.current-site").html("SHRM China "); 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.. View our privacy policy, privacy policy (California), cookie policy, supported browsers and access your cookie settings. However, on March 14, 2022, a district court vacated the Department's rules to delay and withdraw the Independent Contractor Status Under the Fair Labor Standards Act . The site is secure. As with the overtime rule, the final independent contractor rule would take effect no sooner than 60 days after it is published in the Federal Register. The site is secure. [CDATA[/* >