These exemptions are commonly referred to as the white-collar or EAP exemptions. The federal overtime provisions are contained in the Fair Labor Standards Act (FLSA). The proposed overtime rule will be published in May, according to the agenda, which lists the status of anticipated regulatory actions. 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. Therefore, do not send or include any information in your email that you consider to be confidential or privileged. .agency-blurb-container .agency_blurb.background--light { padding: 0; } Another increase has long been on the Biden administrations agenda, but it has not said what dollar figure it has in mind. Although there are no legal implications regarding the administration's failure to issue the agenda in a timely manner, there are important considerations for the regulated community. However, Section 13(a)(1) of the FLSA provides an exemption from overtime pay for individuals employed as bona fide executive, administrative, and professional employees and who receive pay on a salary basis of not less than $684/week. In July 2022, the National Labor Relations Board (NLRB) is planning to release an NPRM to potentially amend the standard determining when two employers may be considered joint employers under the National Labor Relations Act. Restore the multifactor, totality-of-the-circumstances analysis to determine whether a worker is an employee or an independent contractor under the FLSA. On June 7, ICE sent its proposal to the Office of Information and Regulatory Affairs (OIRA). The following policy statements* will be included in your export: *Use of this material is governed by XpertHRs Terms and Conditions. Overtime Proposed Rule Release Planned in May, ISO/TC 260 HR Management and HRCI Global Standards Leadership, HRCI Certification for Military HR Personnel. 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. The policy directed U.S. 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. June 29, 2022. Now is a great time to put your "HR house" in order when it comes to accurate exempt/non-exempt classifications and earning thresholds. 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. 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 . In the Biden administration's fall 2021 regulatory agenda, the Department of Labor (DOL)'s Wage and Hour Division (WHD) announced that it planned to release in April 2022 a Notice of Proposed Rulemaking (NPRM) changing criteria for the "executive, administrative and professional" exemptions from the overtime pay requirements under the Fair Labor Standards Act (FLSA). Copyright 2023 LexisNexis Risk Solutions Group. @media (max-width: 992px){.usa-js-mobile-nav--active, .usa-mobile_nav-active {overflow: auto!important;}} Protecting vulnerable workers and persons from underserved communities from employment discrimination. To request permission for specific items, click on the reuse permissions button on the page where you find the item. The agency plans to release a new overtime threshold in May. Changes to overtime pay requirements have beenimplementedthrough regulations under both the Obama and Trump administrations. CUPA-HR has engaged with DHS on the Form I-9 flexibilities through the pandemic. else if(currentUrl.indexOf("/about-shrm/pages/shrm-mena.aspx") > -1) { A sign stands in front of the U.S. Department of Labor. The U.S. Department of Labor in September 2019 updated the federal overtime rules regarding executive, administrative, and professional workers. The FTC is accepting public comments on the proposed rule until March 10, 2023, and they can be submitted online. On June 21, the Biden administration released the anticipated Spring 2022 Unified Agenda of Regulatory and Deregulatory Actions (Regulatory Agenda), providing the public with a detailed glimpse into the regulatory and deregulatory activities under development across approximately 67 federal departments, agencies and commissions. 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.. . 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 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. 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). . In September 2019, the Trump DOL issued a new overtime rule, which took effect on January 1, 2020, raising the weekly minimum salary for EAP exemptions from $455 per week ($23,660 per year . Require automatic future increases to the threshold. Those changes, however, were less significant than the 2016 efforts to modify FLSA provisions, which were halted later due to a preliminary injunction. There is no limit in the Act on the number of hours employees aged . In the Fall 2021 Regulatory Agenda, WHD announced their intention to move forward with the NPRM with the goal to update the salary level requirement of the section 13(a)(1) exemption [under the FLSA].. Department of Labor Intends to Extend Overtime Pay Requirements to More 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. Section 13(a)(1) of the FLSA, codified at 29 U.S.C. if(currentUrl.indexOf("/about-shrm/pages/shrm-china.aspx") > -1) { if(currentUrl.indexOf("/about-shrm/pages/shrm-china.aspx") > -1) { An official website of the United States government. Gain the intel you need now to successfully anticipate and navigate employment laws, stay compliant and mitigate legal risks. Assist with the proper classification of employees and independent contractors under the FLSA. After the Trump administration started the rulemaking process anew, in September 2019, DOL issued a newfinal ruleraising the minimum salary level required for exemption from $23,660 annually to $35,568 annually. 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 . These factors include the investment, control and opportunity for profit or loss factors. 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. The new rule goes into effect January 1, 2020. The Department of Labor remains committed to addressing the issue of misclassification.. Please enable scripts and reload this page. Affiliate of the Society for Human Resource Management, Home Blog 2022 DOLS PROPOSED OVERTIME RULE. When autocomplete results are available use up and down arrows to review and enter to select. Regardless of the ultimate increase in the salary level, employers who rely on the white-collar exemptions should be on notice of potential changes. On Jan. 4, the Biden administration released its long-awaitedFall 2022 Unified Agenda of Regulatory and Deregulatory Actions. The DOL, HHS, and Treasury just released an FAQ that provides guidance on if Drug Manufacturers' Coupons disqualify Health Savings Accounts. 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. It is possible that DHS will use that feedback to develop and implement this NPRM. 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. Consistent with the presidential memorandum, the DHS published a notice of proposed rulemaking on Sept. 28, 2021, to consider all issues regarding DACA, including those identified by the district court relating to the policy's substantive legality. ET, Webinar 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. Effective Jan. 1, 2020, the federal minimum salary threshold increased to $684 a week. The US Department of Labor (DOL) is planning for a busy springtime. Your session has expired. 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. 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. .manual-search ul.usa-list li {max-width:100%;} The department believes the new rule would preserve essential worker rights and provide consistency for regulated entities. Please enable scripts and reload this page. 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. The following roles are exempt from overtime: The salary test is where we expect to see changes. Tuesday, February 28, 2023. The Federal Trade Commission has issued a proposed rule that would ban employers from imposing noncompete agreements on their workers. 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. div#block-eoguidanceviewheader .dol-alerts p {padding: 0;margin: 0;} Guidance materials about overtime topics, including an Employment Law Guide, Qs & As, guide to overtime laws in the states, and more. The Overtime Rule. 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. Copyright 2023 HRCI. document.head.append(temp_style); You may be trying to access this site from a secured browser on the server. To see changes issue of misclassification send or include any information in your email that you to! 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