In the Fall 2021 Regulatory Agenda, the DOL's Wage and Hour Division (WHD) announced plans to issue an NPRM as early as April 2022 to address overtime pay requirements for certain white-collar employees.1 Since 1938, the Fair Labor Standards Act (FLSA or Act) has established the minimum wage and overtime pay President Biden touted increasing the salary threshold throughout his presidential campaign. In publishing the proposed new rule . if(currentUrl.indexOf("/about-shrm/pages/shrm-china.aspx") > -1) { .manual-search-block #edit-actions--2 {order:2;} 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. 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. .paragraph--type--html-table .ts-cell-content {max-width: 100%;} Federal government websites often end in .gov or .mil. Must be a Paid Member or a Free Trial Member to Access Content. The deadline to announce such changes was initially set for April 2022 but has since seen several delays. Use of the service is subject to our terms and conditions. Rescind the 2021 Independent Contractor Rule. Another increase has long been on the Biden administrations agenda, but it has not said what dollar figure it has in mind. Revert to the longstanding interpretation of the economic reality factors. Shannon Meade is executive director of Littler's Workplace Policy Institute in Washington, D.C. 2023 Littler. Colorado Maine New York The salary threshold for the overtime exemption varies based on geographical location. Many expect the DOL to increase the threshold from its current minimum salary amount of $684/weekpotentially impacting millions of employees across the United States. 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. To cope with a paradoxical labor market, HR pros still squarely focused on recruiting may need to re-evaluate role requirements, inclusion initiatives and more. "Snowy Labor Department Sign" [photograph]. 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. 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. 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 division encourages all stakeholders to participate in the regulatory process. Normally, overtime pay earned in a particular workweek must be paid on the regular pay day for the pay period in which the wages were earned. #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;} ("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 . Of note, in 2016, the Obama administration attempted to raise the salary basis threshold from $455/week to $921/week. Comments on the proposed rule are due by March 10, 2023. From March 2020 through June 2020, employees were required to work remotely four days per week due to the COVID-19 pandemic. Oct 11 2022 10:37 AM EDT Updated Tue, . 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 Trump administration implemented the last increase from $23,660 per year to $35,568 per year in 2019. Many in the business community believe that current hiring and retention issues, supply chain disruptions, and inflationary pressures are all reasons why the DOL should not proceed with a rulemaking.". Members can get help with HR questions via phone, chat or email. 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. June 29, 2022. FLSA requirements relating to minimum wage, overtime, and . 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. OSHA aims to complete a final rule by September. The key labor and employment regulatory actions included in the fall agenda are listed below. div#block-eoguidanceviewheader .dol-alerts p {padding: 0;margin: 0;} Get the free daily newsletter read by industry experts. Please confirm that you want to proceed with deleting bookmark. Washington, DC 202101-866-4-USA-DOL1-866-487-2365www.dol.gov, Misclassification continues to deny workers rightful wages; hurt businesses, economy, Industry-Recognized Apprenticeship Programs (IRAP), Bureau of International Labor Affairs (ILAB), Employee Benefits Security Administration (EBSA), Employees' Compensation Appeals Board (ECAB), Employment and Training Administration (ETA), Mine Safety and Health Administration (MSHA), Occupational Safety and Health Administration (OSHA), Office of Administrative Law Judges (OALJ), Office of Congressional and Intergovernmental Affairs (OCIA), Office of Disability Employment Policy (ODEP), Office of Federal Contract Compliance Programs (OFCCP), Office of Labor-Management Standards (OLMS), Office of the Assistant Secretary for Administration and Management (OASAM), Office of the Assistant Secretary for Policy (OASP), Office of the Chief Financial Officer (OCFO), Office of Workers' Compensation Programs (OWCP), Ombudsman for the Energy Employees Occupational Illness Compensation Program (EEOMBD), Pension Benefit Guaranty Corporation (PBGC), Veterans' Employment and Training Service (VETS), Economic Data from the Department of Labor, Learn more about the Wage and Hour Division, Federal court orders Hyundai, Kia auto parts manufacturer to stop employing minors illegally, end oppressive child labor law violations, US Department of Labor hosts annual conference for nations mine safety, health trainers at National Mine Health and Safety Academy, Oct. 11-13. 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. 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. The district court further sent the DACA policy to the DHS for further consideration. The law covers virtually every employer . $(document).ready(function () { Please confirm that you want to proceed with deleting bookmark. else if(currentUrl.indexOf("/about-shrm/pages/shrm-mena.aspx") > -1) { This business model . 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. [Mr. Fendly's statement may be found in the appendix.] The proposed changes will impact Employers and employees. A Davis-Bacon Act final rule is now scheduled for December. Regardless of the ultimate increase in the salary level, employers who rely on the white-collar exemptions should be on notice of potential changes. Assist with the proper classification of employees and independent contractors under the FLSA. On Jan. 4, the Biden administration released its long-awaitedFall 2022 Unified Agenda of Regulatory and Deregulatory Actions. keystyle mmc corp login; thomson reuters drafting assistant user guide. $(document).ready(function () { The agency ultimately proposed and, Another increase has long been on the Biden administrations agenda, but it has not said what dollar figure it has in mind. 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). A vast majority of organizations across numerous industries face potential compliance and monetary impacts if the legislation passes. Most recently, DHS announced an additional extension of the Form I-9 flexibility guidance through October 31, 2022. . ACTION: Notice of proposed rulemaking; request for comments. Marty Walsh, the Secretary of Labor indicated previously that the salary basis threshold is too low and as part of the review, the DOL will consider whether regular and automatic updates . However, Schreter said, "I don't think they're going to give up on that.". Section 13(a)(1) of the FLSA, codified at 29 U.S.C. Please log in as a SHRM member. proposed changes. Jan 23, 2023 | Neil Reichenberg, HRCI Contributing Writer. We help organizations develop a comprehensive understanding of state laws and regulations to inform investment across people strategies and operations. 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. SHRM India has India-specific pricing and certification details. 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. 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