It is not intended to provide specific legal, tax or other professional advice. The Trump administration withdrew the 2016 proposal and proposed a lesser increase to $35,563, which was adopted in March 2019. Your session has expired. 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 . Averaging of hours over two or more weeks is not permitted. 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 are needed. 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. Please enable scripts and reload this page. Please note that all such forms and policies should be reviewed by your legal counsel for compliance with applicable law, and should be modified to suit your organizations culture, industry, and practices. 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 amount for small employers will increase again on Jan. 1, 2023 to $15 per hour. 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 FTC Proposed Rule Would Ban Noncompete Agreements The Federal Trade Commission (FTC) has proposed a rule that would ban employers from imposing noncompete agreements on their employees. $("span.current-site").html("SHRM MENA "); 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. .usa-footer .grid-container {padding-left: 30px!important;} Topics covered: HR management, compensation & benefits, development, HR tech, recruiting and much more. The federal overtime provisions are contained in the Fair Labor Standards Act (FLSA). One other item that may be in play is the duties test, Boonin added. 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. United States Department of Labor (DOL) is expected to issue a new proposal for a new salary threshold for several overtime exemptions under the Fair Labor Standards Act (FLSA). . Neither members nor non-members may reproduce such samples in any other way (e.g., to republish in a book or use for a commercial purpose) without SHRMs permission. Fair Labor Standards Act The FLSA establishes minimum wage, overtime pay, and payday standards, in addition to recordkeeping obligations . 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. temp_style.textContent = '.ms-rtestate-field > p:first-child.is-empty.d-none, .ms-rtestate-field > .fltter .is-empty.d-none, .ZWSC-cleaned.is-empty.d-none {display:block !important;}'; The Trump administration implemented the last increase from $23,660 per year to $35,568 per year in 2019. By NAM News Room May 6, 2022 2:45pm. Neither Arthur J. Gallagher & Co., nor its affiliates provide accounting, legal or tax advice. Affiliate of the Society for Human Resource Management, Home Blog 2022 DOLS PROPOSED OVERTIME RULE. 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. For questions or additional information, contact Reichenberg atneilreichenberg@yahoo.com. Members please Login here to view the article. 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. Please confirm that you want to proceed with deleting bookmark. Feel free to contact us if you have questions about this matter. 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 US Department of Labor (DOL) is planning for a busy springtime. The Division of Labor Standards protects all workers, including those that are undocumented or paid off the books, and ensures employers are following Labor Laws. The department said in the regulatory agenda that "the danger faced by health care workers continues to be of the highest concern and measures to prevent the spread of COVID-19 are still needed to protect them." div#block-eoguidanceviewheader .dol-alerts p {padding: 0;margin: 0;} 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. An agency within the U.S. Department of Labor, 200 Constitution Ave NW Now, the DOL is considering a new overtime rule and the proposal is expected to hit this coming fall. Get the free daily newsletter read by industry experts. Additionally, CUPA-HR submitted commentsin response to the RPI based on a recent survey detailing members experiences with the Form I-9 verification process flexibilities. A new overtime rule from the U.S. Department of Labor is likely to change some of the existing rule's white-collar exemptions. The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely. 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. 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 . Must be a Paid Member or a Free Trial Member to Access Content. | 2 p.m. DOL addressed the topic again in 2019 and enacted changes on January 1, 2020. Let HR Dive's free newsletter keep you informed, straight from your inbox. 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 . 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. Joint-employer status under the National Labor Relations Act. Federal government websites often end in .gov or .mil. State law requires [] (2015). Your session has expired. 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. 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. In . The DOL has set a new deadline for overtime threshold increases. The proposed rule is intended to replace the 2021 independent contractor regulation. The materials and information included in the XpertHR service are provided for reference purposes only. Please purchase a SHRM membership before saving bookmarks. Conversely, there is nothing stopping the DOL from issuing new rules before its target dates, either. The Notice of Proposed Rulemaking was originally slated for April 2022 but then delayed to October of that year. Washington, DC 202101-866-4-US-WAGE1-866-487-9243, Administrator Interpretations, Opinion and Ruling Letters, Resources for State and Local Governments. 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. President Biden touted increasing the salary threshold throughout his presidential campaign. The most common exemption categories are known as the white collar exemptions: executive, administrative and professional. Most recently, DHS announced an additional extension of the Form I-9 flexibility guidance through October 31, 2022. Get the Quickstart Guide for Employers. 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.". #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;} 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. Overtime Proposed Rule Release Planned in May, ISO/TC 260 HR Management and HRCI Global Standards Leadership, HRCI Certification for Military HR Personnel. Protecting vulnerable workers and persons from underserved communities from employment discrimination. The DOL initially planned to issue this new proposal in April 2022. You have successfully saved this page as a bookmark. Conversely, there is nothing stopping the DOL from issuing new rules before its target dates, either. The new proposal is likely to be issued in the near future and could be issued as early as this month. The proposed overtime rule will be published in May, according to the agenda, which lists the status of anticipated regulatory actions. The proposed rule would provide guidance on classifying workers and seeks to combat employee misclassification. CUPA-HR sent a letter to USCIS Director Ur M. Jaddou asking for this additional extension. An employee's workweek is a fixed and regularly recurring period of 168 hours seven consecutive 24-hour periods. 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. 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. 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). ol{list-style-type: decimal;} The proposed rule . 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. Read by industry experts not constitute or create an attorney-client relationship with Lord! 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