Please confirm that you want to proceed with deleting bookmark. The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely. For Long Island and Westchester County . 2022: Fall 2022 Rulemaking Comments. Regulatory agenda lists the status of anticipated regulatory actions. The salary basis threshold was increased in 2019 from $23,660/year to $35,568/year. DOL had previously planned to release the proposed rule in October 2022. . Restore the multifactor, totality-of-the-circumstances analysis to determine whether a worker is an employee or an independent contractor under the FLSA. 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. Ensure that all factors are analyzed without assigning a predetermined weight to a particular factor or set of factors. 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. From March 2020 through June 2020, employees were required to work remotely four days per week due to the COVID-19 pandemic. 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. Learn more about the Wage and Hour Division. "Some commentators, though, believe that the administration may go the distance this time and look toward conforming the federal rules to more closely reflect the California standards," he said. By: Jenny R. Yang February 28, 2023. 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. This spring, the U.S. Department of Labor (DOL) is expected to announce recommended changes related to employee salary for overtime rules as part of the Fair Labor Standards Act (FLSA). The new proposal, which is included in the Departments Statement of Regulatory Priorities, will take into consideration the feedback it received in response to aRequest for Information (RFI) on data and methods for determining prevailing wage levels to ensure fair wages and strengthen protections for foreign and U.S. workers.. Regardless of the ultimate increase in the salary level, employers who rely on the white-collar exemptions should be on notice of potential changes. An employee's workweek is a fixed and regularly recurring period of 168 hours seven consecutive 24-hour periods. div#block-eoguidanceviewheader .dol-alerts p {padding: 0;margin: 0;} .agency-blurb-container .agency_blurb.background--light { padding: 0; } Please log in as a SHRM member before saving bookmarks. @media (max-width: 992px){.usa-js-mobile-nav--active, .usa-mobile_nav-active {overflow: auto!important;}} The DOL has considered modifying the regulations in this regard a few times in recent yearsbut hasended up leaving the current tests alone. The law covers virtually every employer . While details of the 2022 proposed changes are forthcoming, organizations should prepare now to address pending challenges and associated opportunities. Tuesday, February 28, 2023. To request permission for specific items, click on the reuse permissions button on the page where you find the item. 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. 96% of members agree: "SHRMs information is very useful to me". The department believes the new rule would preserve essential worker rights and provide consistency for regulated entities. Now, the DOL is considering a new overtime rule and the proposal is expected to hit this coming fall. "If there is a significant increase in the salary-basis level for the executive, administrative and professional exemptions, this change will require employers to identify and . Please purchase a SHRM membership before saving bookmarks. 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). 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. That final rule took effect on January 1, 2020. Feel free to contact us if you have questions about this matter. overtime pay and the ability to organize into unions. Read on for everything you need to know. Protecting vulnerable workers and persons from underserved communities from employment discrimination. The salary basis threshold was increased in 2019 from $23,660/year to $35,568/year. The DHS has appealed the district court's decision. The district court further sent the DACA policy to the DHS for further consideration. The most common exemption categories are known as the white collar exemptions: executive, administrative and professional. Please purchase a SHRM membership before saving bookmarks. With the issuance of its spring regulatory agenda 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. An HR Advisor is here to help by email, live chat, or phone. In fact, Walsh indicated in the June hearing that the DOL thinks the rule should be reviewedand possibly updatedregularly. 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. p.usa-alert__text {margin-bottom:0!important;} "If any of these issues make their way into new regulations in any significant way, litigation is assured.". var currentLocation = getCookie("SHRM_Core_CurrentUser_LocationID"); Certain groups have been advocating for a tightening of the duties tests, claiming that the tests are currently too loose and are toothless. We will advise you when the proposed test is finally issued. The case hinged on the "salary basis" test for the white . Overtime Proposed Rule Release Planned in May, ISO/TC 260 HR Management and HRCI Global Standards Leadership, HRCI Certification for Military HR Personnel. New DOL Overtime Threshold in 2022. * * *On October 11, 2022, the U.S. Department of Labor released a proposed rule to update the test for determining whether a worker is an employee under the Fair Labor Standards Act (FLSA) or an independent contractor. 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. Revert to the longstanding interpretation of the economic reality factors. You have successfully saved this page as a bookmark. The Act applies on a workweek basis. The U.S. Department of Labor in September 2019 updated the federal overtime rules regarding executive, administrative, and professional workers. 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. .dol-alert-status-error .alert-status-container {display:inline;font-size:1.4em;color:#e31c3d;} The site is secure. 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.". 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].. Marcus G. Keegan, EEOC regional attorney for the Atlanta District Office stated, The ADA requires employers to provide reasonable accommodations to employees with disabilities to ensure those with disabilities have an equal opportunity to work to their full ability. The amount for small employers will increase again on Jan. 1, 2023 to $15 per hour. This final rule went into effect January 1, 2020, and it remains in effect today. Labor Rights. The services of an appropriate professional should be sought regarding your individual situation. In 2016, a proposed change would have moved the salary threshold from $455 per week ($23,660 annualized) to $913 per week ($47,476). 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. 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. ET, Presented by studioID and Express Employment Professionals, The comprehensive list of HR trends to watch in 2023, Faith groups ask SCOTUS to overturn religious accommodation precedent, Biden to appoint Julie Su as Labor Secretary, Interpreting the FMLA, one case at a time, Quiet Black History Month a warning sign, DEI pros say, Everything employers must know on employee development, Boost Employee Engagement with Small Moments of Joy at Work, Winning the War for Talent: Why On-Demand Pay Is Becoming the Must-Have Benefit to Get and Keep the Best Employees, Diversity exec Saraswati resigns amid claims she lied about her race, People arent getting the COVID booster. President Biden touted increasing the salary threshold throughout his presidential campaign. 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. Your session has expired. 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