Align the departments approach with courts FLSA interpretation and the economic reality test. Salaried exempt employees have to earn at least the state thresholds because they are higher than the federal . The upcoming proposal is likely to mirror or even exceed the changes anticipated in 2016. Section 13(a)(1) of the FLSA, codified at 29 U.S.C. 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). .paragraph--type--html-table .ts-cell-content {max-width: 100%;} ("WHD") plans to develop and release in April 2022 a Notice of Proposed Rulemaking ("NPRM") on "the exemption of bona fide executive, administrative, and professional . 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. var currentUrl = window.location.href.toLowerCase();
Existing noncompete agreements would need to be rescinded and workers informed that they are no longer in effect. 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 . The integral factor, which considers whether the work is integral to the employers business, is also included. Conversely, there is nothing stopping the DOL from issuing new rules before its target dates, either. The DOL, HHS, and Treasury just released an FAQ that provides guidance on if Drug Manufacturers' Coupons disqualify Health Savings Accounts. $(document).ready(function () {
Most recently, DHS announced an additional extension of the Form I-9 flexibility guidance through October 31, 2022. In 2016, a proposed change would have moved the salary threshold from $455 per week ($23,660 annualized) to $913 per week ($47,476). 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 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). On October 11, 2022, the U.S. Department of Labor (DOL) unveiled a new proposed rule that could make it more difficult for workers to be classified as independent contractors under the Fair Labor Standards Act (FLSA). DOL had previously planned to release the proposed rule in October 2022. New DOL Overtime Threshold in 2022. 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. Those changes, however, were less significant than the 2016 efforts to modify FLSA provisions, which were halted later due to a preliminary injunction. Washington, DC 202101-866-4-US-WAGE1-866-487-9243, Administrator Interpretations, Opinion and Ruling Letters, Resources for State and Local Governments. 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.. Oct 11 2022 10:37 AM EDT Updated Tue, . $('.container-footer').first().hide();
In 2016, a proposed change would have moved the salary threshold from $455 per week ($23,660 annualized) to $913 per week ($47,476). }); if($('.container-footer').length > 1){
enter into or attempt to enter into a noncompete agreement with a worker; maintain a noncompete agreement with a worker; or. .manual-search-block #edit-actions--2 {order:2;} The May goal represents a second delay. 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. 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. USA August 24 2022. The salary basis threshold was increased in 2019 from $23,660/year to $35,568/year. $("span.current-site").html("SHRM China ");
.paragraph--type--html-table .ts-cell-content {max-width: 100%;} Members can get help with HR questions via phone, chat or email. "Thus, it is premature to make internal changes to pay policies in anticipation of the rulemaking. .agency-blurb-container .agency_blurb.background--light { padding: 0; } 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. 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. Shortly thereafter, President Donald Trump took office and DOL abandoned its defense of the rule. 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. Your session has expired. Partner Russell Bruch spoke to HR Today about a proposed US Department of Labor overtime rule expected to lead to increased eligibility for overtime pay. Of note, in 2016, the Obama administration attempted to raise the salary basis threshold from $455/week to $921/week. By: Jenny R. Yang February 28, 2023. 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. .manual-search ul.usa-list li {max-width:100%;} .usa-footer .container {max-width:1440px!important;} We help organizations develop a comprehensive understanding of state laws and regulations to inform investment across people strategies and operations. Subscribe to HR Dive for top news, trends & analysis, The free newsletter covering the top industry headlines, Talent Attraction and Retention for 2023: Finance and HR leaders should look to on-demand pay,, The Omnia Group Releases 2023 Annual Talent Trends Report, TimeForge Integrates with Careerjet to Give Businesses Access to Thousands of Job Seekers, Talkspace Launches First-of-its-Kind Portal Dedicated to Employee Mental Health Resources, By signing up to receive our newsletter, you agree to our. The Department delayed the rule on March 4, 2021, and then withdrew it on May 6, 2021, believing that it was inconsistent with the Fair Labor Standards Act's text and purpose. 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 most recent regulatory agenda set the date at May 2023. . The DOL has set a new deadline for overtime threshold increases. Specifically, the flexibility guidance allows for remote inspection of Form I-9 documents in situations where employees work exclusively in a remote setting due to COVID-19-related precautions. 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. Some of the topics on which comment was requested, along with a number of alternative approaches described in the proposed rule, suggests that the ultimate product of the rulemaking may be less than a total ban. For Long Island and Westchester County . 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 . 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. Require automatic future increases to the threshold. The following policy statements* will be included in your export: *Use of this material is governed by XpertHRs Terms and Conditions. While the specifics remain unknown, some labor law experts speculate that it will: Increase the weekly threshold from $684 to $900--$1,000. The FLSA does not require overtime pay for work on Saturdays, Sundays, holidays, or regular days of rest, unless overtime is worked on such days. By continuing to use our site or by closing this banner without changing your cookie settings, you agree to our use of cookies. Please confirm that you want to proceed with deleting bookmark. (2015). Gallagher supports organizations with comprehensive solutions to include exemption review, compensation and classification structures, enhanced management of ongoing joint-employer challenges and implementation strategies. Start Preamble AGENCY: Wage and Hour Division, Department of Labor. Minimum Wages Are On the Rise in Several States. Must be a Paid Member or a Free Trial Member to Access Content. .manual-search-block #edit-actions--2 {order:2;} 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. Regardless of the ultimate increase in the salary level, employers who rely on the white-collar exemptions should be on notice of potential changes. 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. if(currentUrl.indexOf("/about-shrm/pages/shrm-china.aspx") > -1) {
Although the DOL will almost certainly grant employers several months of lead-up time before implementing the new threshold, understanding the potential impact of a dramatic increase now will help employers adjust in the future. In particular, the House Education and Labor Committee (expected to be renamed the "House Education and Workforce Committee" by the new Republican majority) is expected to pursue aggressive oversight of the DOL and the NLRB. 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. .agency-blurb-container .agency_blurb.background--light { padding: 0; } When autocomplete results are available use up and down arrows to review and enter to select. 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. While the employer allowed other employees in her position to work from home, it denied her request and shortly thereafter terminated her employment. The U.S. Department of Labor said it will review Fair Labor Standards Act regs that implement white-collar minimum wage and overtime exemptions and propose an update in April 2022. 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. 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. Please purchase a SHRM membership before saving bookmarks. 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. Please log in as a SHRM member before saving bookmarks. .table thead th {background-color:#f1f1f1;color:#222;} 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. The rulemaking increased in 2019 from $ 23,660/year to $ 921/week DOL from new! 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