Conversely, there is nothing stopping the DOL from issuing new rules before its target dates, either. 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. June 29, 2022. The key labor and employment regulatory actions included in the fall agenda are listed below. Those changes, however, were less significant than the 2016 efforts to modify FLSA provisions, which were halted later due to a preliminary injunction. 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. CUPA-HR has engaged with DHS on the Form I-9 flexibilities through the pandemic. 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 . $(document).ready(function () { Eliminating recruitment and hiring barriers. 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 . 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). 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. 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). .dol-alert-status-error .alert-status-container {display:inline;font-size:1.4em;color:#e31c3d;} $("span.current-site").html("SHRM MENA "); else if(currentUrl.indexOf("/about-shrm/pages/shrm-mena.aspx") > -1) { 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.". .table thead th {background-color:#f1f1f1;color:#222;} These exemptions are commonly referred to as the white-collar or EAP exemptions. Employers should carefully review all pay practices, exemptions from overtime, and potential FLSA liability in light of these potential changes. 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. 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 } . ACTION: Notice of proposed rulemaking; request for comments. The proposed overtime rule will be published in May, according to the agenda. Federal law currently requires overtime pay only for employees who earn an annual salary of less than $35,568, although many such workers are excluded. To request permission for specific items, click on the reuse permissions button on the page where you find the item. Any information you send to Locke Lord LLP through this website is on a non-confidential and non-privileged basis. .manual-search ul.usa-list li {max-width:100%;} ET, Webinar The DOL promised to consider this feedback and may make changes to its draft rule before publishing a final version. The site is secure. div#block-eoguidanceviewheader .dol-alerts p {padding: 0;margin: 0;} Please log in as a SHRM member before saving bookmarks. The DOL's December agenda appears to be the first real step in that direction, announcing it will propose an update in . if(currentUrl.indexOf("/about-shrm/pages/shrm-china.aspx") > -1) { As we previously reported in our New Year's Update for 2022, the US Department of Labor (DOL's) regulatory agenda included proposed rulemaking on the Fair Labor Standards Act (FLSA) overtime rules by April 2022. 10.19.2022 The Department of Labor is seeking public comment on or before November 28, 2022, regarding its proposed changes to the classification of independent contractors under the Fair Labor Standards Act. 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. The DOL, HHS, and Treasury just released an FAQ that provides guidance on if Drug Manufacturers' Coupons disqualify Health Savings Accounts. var currentLocation = getCookie("SHRM_Core_CurrentUser_LocationID"); In May 2016, the Obama administrations DOL issued afinal ruleincreasing the salary threshold from $23,660 to $47,476 per year and imposed automatic updates to the threshold every three years. Do you need help with your HR questions? (2015). DOL addressed the topic again in 2019 and enacted changes on January 1, 2020. The courts blocked this proposal shortly before it was scheduled for implementation. The federal overtime provisions are contained in the Fair Labor Standards Act (FLSA). The proposed rule would provide guidance on classifying workers and seeks to combat employee misclassification. Conversely, there is nothing stopping the DOL from issuing new rules before its target dates, either. 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 materials and information included in the XpertHR service are provided for reference purposes only. .paragraph--type--html-table .ts-cell-content {max-width: 100%;} 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 Overtime Rule. 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. The Notice of Proposed Rulemaking was originally slated for April 2022 but then delayed to October of that year. 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. Please enable scripts and reload this page. "Snowy Labor Department Sign" [photograph]. We anticipate the proposed new level will be higher. Tuesday, February 28, 2023. 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 . #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;} OSHA aims to complete a final rule by September. For example, the lack of transparency in knowing what to expect makes it more difficult to hold the administrative state accountable for its plans. The move would have entitled millions more employees to overtime pay, economists estimated, but it was halted when a federal judge. One other item that may be in play is the duties test, Boonin added. The Act applies on a workweek basis. That final rule took effect on January 1, 2020. All rights reserved. The overtime rule was first slated for April 2022 and then for October 2022, so another delay would not be unusual. The DOL plans to make the changes effective in 2023. Pay transparency, employee privacy, compassionate leadership and political biases are among this years hot debates, according to labor experts. Effective Jan. 1, 2022, the minimum wage in California will increase to $15 per hour for large employers with 26 or more employees; it will increase to $14 for small employers with fewer than 25 employees. 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. 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. 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. . @media only screen and (min-width: 0px){.agency-nav-container.nav-is-open {overflow-y: unset!important;}} Sign up for our newsletter and get the latest to your inbox. The federal overtime provisions are contained in the Fair Labor Standards Act (FLSA). Democrats want OT salary threshold upped to $82,732 by 2026. In . proposed changes. 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. Please enable scripts and reload this page. else if(currentUrl.indexOf("/about-shrm/pages/shrm-mena.aspx") > -1) { @media (max-width: 992px){.usa-js-mobile-nav--active, .usa-mobile_nav-active {overflow: auto!important;}} 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 2016, a proposed change would have moved the salary threshold from $455 per week ($23,660 annualized) to $913 per week ($47,476). Currently, the Department of Labor requires that employees covered by the Fair Labor Standards Act must receive overtime pay for working more than 40 hours in a workweek, unless the employee is covered by certain exemptions. It remains to be seen whether the DOL will follow its own timeline, however. 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. The DOL has considered modifying the regulations in this regard a few times in recent yearsbut hasended up leaving the current tests alone. Track your regular work hours, break time, and overtime hours. Citizenship and Immigration Services (USCIS) to create a process to defer theremoval of certain noncitizens who years earlier came to the United States as children, meet other criteria and do not present other circumstances that would warrant removal, according to the DHS. Review Administrator Interpretations, Opinion and Ruling Letters as well as pertinent chapters of the WHD Field Operations Handbook. Now is a great time to put your "HR house" in order when it comes to accurate exempt/non-exempt classifications and earning thresholds. Generally, the rule applies to any salaried worker who does not supervise other workers and makes less than $684 a week . The Biden administration has signaled its desire to return to the approach attempted in 2016. Survey Participation and Information Templates, CUPA-HR Welcomes a New Board of Directors for 2022-23. 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 . @media only screen and (min-width: 0px){.agency-nav-container.nav-is-open {overflow-y: unset!important;}} DHS has provided temporary flexibility in the Form I-9 verification process since the beginning of the COVID-19 pandemic. This final rule went into effect January 1, 2020, and it remains in effect today. 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 . The salary basis threshold has been raised numerous times since Congress enacted the FLSA in 1938. .usa-footer .grid-container {padding-left: 30px!important;} Supreme Court: Salary, Not Daily Pay, Required for FLSA Overtime Exemptions. 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. 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. Now, the DOL is considering a new overtime rule and the proposal is expected to hit this coming fall. Shortly thereafter, President Donald Trump took office and DOL abandoned its defense of the rule. The courts blocked this proposal shortly before it was scheduled for implementation. Updated October 25, 2022: The DOL has extended the comment period for this proposed rule until December 13, 2022. The FTC noted that the proposed rule would make it illegal for an employer to: EEOC Settles COVID Discrimination Lawsuit The Equal Employment Opportunity Commission (EEOC) announced that it settled a lawsuit alleging disability discrimination in violation of the Americans with Disabilities Act (ADA) by an employer who denied an employees reasonable request to work from home and subsequently fired her. Comments, which must be submitted from Oct. 13 to Nov. 28, 2022, should be submitted online or in writing to the Division of Regulations, Legislation and Interpretation, Wage and Hour Division, U.S. Department of Labor, Room S-3502, 200 Constitution Ave. NW, Washington, DC 20210. New DOL Overtime Threshold in 2022. The new proposal is likely to be issued in the near future and could be issued as early as this month. Ms. Moncrief requested an accommodation that would allow her to work remotely two days per week and be allowed frequent breaks while working on-site due to her pulmonary condition, which placed her at greater risk of contracting COVID-19. 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. Changes to overtime pay requirements have beenimplementedthrough regulations under both the Obama and Trump administrations. Guidance materials about overtime topics, including an Employment Law Guide, Qs & As, guide to overtime laws in the states, and more. Your browser does not allow automatic adding of bookmarks. Build specialized knowledge and expand your influence by earning a SHRM Specialty Credential. On Jan. 4, the Biden administration released its long-awaitedFall 2022 Unified Agenda of Regulatory and Deregulatory Actions. Overtime Proposed Rule Release Planned in May, ISO/TC 260 HR Management and HRCI Global Standards Leadership, HRCI Certification for Military HR Personnel. #block-googletagmanagerfooter .field { padding-bottom:0 !important; } On June 7, ICE sent its proposal to the Office of Information and Regulatory Affairs (OIRA). United States Department of Labor Washington, DC 20210 Re: Overtime Regulations Proposed in the Fall 2021 Regulatory Agenda Dear Acting Administrator Looman: . 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. In the February NPRM, USDA provided only 32 days for stakeholder comment submissions on the proposal. Please log in as a SHRM member before saving bookmarks. Need help with a specific HR issue like coronavirus or FLSA? 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. Minimum Wages Are On the Rise in Several States. Once proposed, stakeholders will have an opportunity to comment before the agency finalizes its rule. The overtime rule was first slated for April 2022 and then for October 2022, so another delay would not be unusual. The background: The overtime rule, part of the . Topics covered: Talent acquisition, diversity and inclusivity in hiring, employer branding, performance evaluations and more. Topics covered: Employee learning, training, onboarding, mentoring, career development and more. p.usa-alert__text {margin-bottom:0!important;} The most common exemption categories are known as the white collar exemptions: executive, administrative and professional. 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. var currentUrl = window.location.href.toLowerCase(); 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. 2023 Locke Lord LLP | Attorney Advertising, Employee Benefits & Executive Compensation, Environmental, Social and Governance (ESG). 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. 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. 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 proposed changes will impact Employers and employees. The amount for small employers will increase again on Jan. 1, 2023 to $15 per hour. Washington, DC 202101-866-4-US-WAGE1-866-487-9243, Administrator Interpretations, Opinion and Ruling Letters, Resources for State and Local Governments. Trumps DOL then revisited the threshold, agreeing that an increase was needed, but one far below the rate Democrats had planned. 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. 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. While independent contractors have an important role in our economy, we have seen in many cases that employers misclassify their employees as independent contractors, particularly among our nations most vulnerable workers, said Secretary of Labor Marty Walsh. 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