CUPA-HR filed anextension request with the department asking for an additional 90 days to evaluate the NPRMs impact on [members] research missions and collect the information needed in order to provide thoughtful and accurate input to the USDA, as well as official comments that were pulled from 2012 comments CUPA-HR submitted with the Society for Human Resource Management (SHRM). else if(currentUrl.indexOf("/about-shrm/pages/shrm-mena.aspx") > -1) { } just days before it was set to take effect. DOL/Employee Benefits Security Administration (EBSA) Wage and Hour Division Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales and Computer Employees, According to the Regulatory Agenda, the Department of Labor (DOL)s Wage and Hour Division (WHD) is now planning to release a Notice of Proposed Rulemaking (NPRM) to address changes to the Fair Labor Standards Act (FLSA)s overtime pay requirements in October 2022. 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. The current Final Rule on Overtime has been in effect since Jan. 1, 2020, and, at the time of its implementation, made 1.3 million American workers newly eligible for overtime. DOL addressed the topic again in 2019 and enacted changes on January 1, 2020. The Federal Trade Commission has issued a proposed rule that would ban employers from imposing noncompete agreements on their workers. 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. @media (max-width: 992px){.usa-js-mobile-nav--active, .usa-mobile_nav-active {overflow: auto!important;}} The DOL's new overtime rule is expected to raise the minimum salary for most overtime-exempt employees and . Biden's DOL may seek to increase the threshold even greater than the 2016 proposal under Obama. Please enable scripts and reload this page. Therefore, do not send or include any information in your email that you consider to be confidential or privileged. NAM Vice President of Infrastructure, Innovation and Human Resources Policy Robyn Boerstling joined us to explain what's happening. 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). Once proposed, stakeholders will have an opportunity to comment before the agency finalizes its rule. The background: The overtime rule, part of the . 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. Ensure that all factors are analyzed without assigning a predetermined weight to a particular factor or set of factors. 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 .gov means its official. 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). @media only screen and (min-width: 0px){.agency-nav-container.nav-is-open {overflow-y: unset!important;}} The proposal will likely amend the Trump administration's final . Members may download one copy of our sample forms and templates for your personal use within your organization. Please log in as a SHRM member. Employers should carefully review all pay practices, exemptions from overtime, and potential FLSA liability in light of these potential changes. The federal overtime provisions are contained in the Fair Labor Standards Act (FLSA). Restore the multifactor, totality-of-the-circumstances analysis to determine whether a worker is an employee or an independent contractor under the FLSA. Neil Reichenberg is the former executive director of the International Public Management Association for Human Resources. 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. 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. var currentUrl = window.location.href.toLowerCase(); 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 Rather than appeal the judge's decision, which was criticized by many unions and worker advocates, the Trump administration proposed a new rule in 2019 that elevated the overtime wage . Supreme Court: Salary, Not Daily Pay, Required for FLSA Overtime Exemptions. #block-googletagmanagerfooter .field { padding-bottom:0 !important; } 96% of members agree: "SHRMs information is very useful to me". Align the departments approach with courts FLSA interpretation and the economic reality test. .usa-footer .grid-container {padding-left: 30px!important;} Now is a great time to put your "HR house" in order when it comes to accurate exempt/non-exempt classifications and earning thresholds. All rights reserved. Addressing selected emerging and developing issues such as qualification standards that discriminate against individuals with disabilities, protecting individuals affected by pregnancy, childbirth and related medical conditions under the Pregnancy Discrimination Act, employment discrimination associated with COVID-19 and other threats to public health, and technology related discrimination. 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. According to DOL, the 40th percentile equated to $921 per week in 2013 and will be about $970 when the rule is . Get the Quickstart Guide for Employers. Last fall, the DOL said it would propose new overtime rules - which are expected to raise the minimum salary for most overtime-exempt employees and possibly update the . 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. Tuesday, February 28, 2023. #block-googletagmanagerheader .field { padding-bottom:0 !important; } Today, the Office of Federal Contract Compliance Programs (OFCCP) acted to protect workers from discrimination and safeguard principles of religious freedom by rescinding the rule, "Implementing Legal Requirements Regarding the Equal Opportunity Clause's Religious Exemption.". An HR Advisor is here to help by email, live chat, or phone. The courts blocked this proposal shortly before it was scheduled for implementation. . The proposed rule will advise businesses on implementing the exemption of bona fide executive, administrative, and professional employees from the minimum wage and overtime requirements of the Fair Labor Standards Act (FLSA). . DOL had previously planned to release the proposed rule in October 2022. "Snowy Labor Department Sign" [photograph]. Effective Jan. 1, 2022, the minimum wage in California will increase to $15 per hour for large employers with 26 or more employees; it will increase to $14 for small employers with fewer than 25 employees. Gallagher supports organizations with comprehensive solutions to include exemption review, compensation and classification structures, enhanced management of ongoing joint-employer challenges and implementation strategies. On February 22, 2023, the final farm labor overtime regulations were adopted, codifying Commissioner Reardon's order adopting the recommendation of the Farm Laborers Wage Board to lower the current 60-hour threshold for overtime pay to 40 hours per week by January 1, 2032, allowing 10 years to phase in the new threshold. 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. 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. U.S. Department of Labor (DOL)/Wage and Hour Division (WHD), DOL/Office of Labor-Management Standards (OLMS), DOL/Employee Benefits Security Administration (EBSA), Occupational Safety and Health Administration (OSHA). 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. The deadline to announce such changes was initially set for April 2022 but has since seen several delays. 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. .usa-footer .container {max-width:1440px!important;} View our privacy policy, privacy policy (California), cookie policy, supported browsers and access your cookie settings. While the specifics remain unknown, some labor law experts speculate that it will: Increase the weekly threshold from $684 to $900--$1,000. You may be trying to access this site from a secured browser on the server. The most common exemption categories are known as the white collar exemptions: executive, administrative and professional. Topics covered: Talent acquisition, diversity and inclusivity in hiring, employer branding, performance evaluations and more. The integral factor, which considers whether the work is integral to the employers business, is also included. Salaried exempt employees have to earn at least the state thresholds because they are higher than the federal . var currentLocation = getCookie("SHRM_Core_CurrentUser_LocationID"); In December 2022, the Department of Agriculture (USDA) plans to re-propose an NPRM that was previously issued in February 2022 and included controversial provisions that would require federal contractors on projects procured by the agency to certify their compliance with dozens of federal and state labor laws and executive orders. .manual-search ul.usa-list li {max-width:100%;} Members may download one copy of our sample forms and templates for your personal use within your organization. Generally, the rule applies to any salaried worker who does not supervise other workers and makes less than $684 a week . Before publication of todays proposed rulemaking, the departments Wage and Hour Division considered feedback shared by stakeholders in forums during the summer of 2022 and will now solicit comments on the proposed rule from interested parties. In 2021, four congressional Democrats argued for a threshold in line with the historical high point of salary thresholds the 55th percentile of earning of full-time salaried workers nationwide. That would have resulted in a threshold of $82,732 by 2026, the letter said. 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 . } 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. Starting in June 2020, employees were required to return to work onsite full-time. .dol-alert-status-error .alert-status-container {display:inline;font-size:1.4em;color:#e31c3d;} Monday, November 7, 2022. Comments on the draft plan must be submitted by February 9, 2023. | 2 p.m. The district court further sent the DACA policy to the DHS for further consideration. Agriculture Acquisition Regulation: Internal Policy and Procedural Updates and Technical Changes. Digital platform companies like Uber, Lyft, Instacart, and DoorDash are waging increasingly aggressive campaigns to erode long-standing labor rights and consumer protections in states across the country. DOL had previously planned to release the proposed rule in October 2022.