In publishing the proposed new rule . 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. 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. .usa-footer .container {max-width:1440px!important;} A new overtime rule from the U.S. Department of Labor is likely to change some of the existing rule's white-collar exemptions. 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.. Regulatory agenda lists the status of anticipated regulatory actions. This website uses cookies to understand your use of our website and to give you a better experience. Overtime Proposed Rule Release Planned in May, ISO/TC 260 HR Management and HRCI Global Standards Leadership, HRCI Certification for Military HR Personnel. $('.container-footer').first().hide(); Build specialized knowledge and expand your influence by earning a SHRM Specialty Credential. DOL addressed the topic again in 2019 and enacted changes on January 1, 2020. Shortly thereafter, President Donald Trump took office and DOL abandoned its defense of the rule. Specifically, the proposed rule would do the following: The department is responsible for ensuring that employers do not misclassify FLSA-covered workers as independent contractors and deprive them of their legal wage and hour protections. 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. 2022. Please log in as a SHRM member before saving bookmarks. Tuesday, February 28, 2023. For example, the lack of transparency in knowing what to expect makes it more difficult to hold the administrative state accountable for its plans. @media only screen and (min-width: 0px){.agency-nav-container.nav-is-open {overflow-y: unset!important;}} Your browser does not allow automatic adding of bookmarks. The proposal is expected to be issued in the near future. Topics covered: Employee learning, training, onboarding, mentoring, career development and more. President Biden touted increasing the salary threshold throughout his presidential campaign. All rights reserved. 213(a)(1), exempts any employee employed in a bona fide executive, administrative, or professional capacity or in the capacity of outside salesman (as such terms are defined and delimited from time to time by regulations of the Secretary, subject to the provisions of the [Administrative Procedure Act.]) The agency took meetings and held online listening sessions with stakeholders last year. In 2016, the Labor Department under President Obama had proposed a salary basis threshold of $47,476/year, which was invalidated by a District Court and the lawsuit was withdrawn by the Trump Administration. We help organizations develop a comprehensive understanding of state laws and regulations to inform investment across people strategies and operations. We anticipate the proposed new level will be higher. Members please Login here to view the article. There are some in the department who believe that in order to be eligible for the exemption, an employee shouldn't be involved in any type of selling, she said. #block-googletagmanagerheader .field { padding-bottom:0 !important; } The FTC is accepting public comments on the proposed rule until March 10, 2023, and they can be submitted online. In its recent spring regulatory agenda, the U.S. Department of Labor (DOL) announced its plans to issue a proposed overtime rule in October 2022. The United States Department of Labor (DOL) is expected to propose a new salary threshold for various overtime exemptions under the Fair Labor Standards Act (FLSA). New DOL Overtime Threshold in 2022. 10.19.2022 The Department of Labor is seeking public comment on or before November 28, 2022, regarding its proposed changes to the classification of independent contractors under the Fair Labor Standards Act. if(currentUrl.indexOf("/about-shrm/pages/shrm-china.aspx") > -1) { Our goal is to ensure that all New York workers are being paid the proper wages, do not have their right to a meal period or day of rest violated, and to uphold New York State Labor Laws. It remains to be seen whether the DOL will follow its own timeline, however. 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." 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. 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. ("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 . 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. In 2016, a proposed change would have moved the salary threshold from $455 per week ($23,660 annualized) to $913 per week ($47,476). 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). Review Administrator Interpretations, Opinion and Ruling Letters as well as pertinent chapters of the WHD Field Operations Handbook. 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 . .usa-footer .grid-container {padding-left: 30px!important;} The DOL's proposed overtime rule would raise the minimum weekly pay threshold legally required to exempt salaried workers from overtime pay from $455 per week to the 40th percentile of earnings for full-time salaried workers. | 1 p.m. The National Labor Relations Board (NLRB) indicated in the spring regulatory agenda its intention to consider addressing the following topics using the rulemaking process in the future: The board announced it would be revising the union representation election procedureswith a focus on the amendments issued in 2020. Labor Rights. 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. 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. By NAM News Room May 6, 2022 2:45pm. The DOL's new overtime rule is expected to raise the minimum salary for most overtime-exempt employees and . represent to a worker, under certain circumstances, that the worker is subject to a noncompete agreement. That final rule took effect on January 1, 2020. Last fall, the Department of Labor (DOL) published its 2021 regulatory priorities, which included plans to update the top salary level that would qualify for exemption from overtime pay (known as the "white collar exemption") under the Fair Labor . .agency-blurb-container .agency_blurb.background--light { padding: 0; } Before sharing sensitive information, make sure youre on a federal government site. Congress must also have keen insight of the administration's regulatory plans to assess its budget requests and operations. Some of the topics on which comment was requested, along with a number of alternative approaches described in the proposed rule, suggests that the ultimate product of the rulemaking may be less than a total ban. | 2 p.m. .paragraph--type--html-table .ts-cell-content {max-width: 100%;} Comments on the draft plan must be submitted by February 9, 2023. Revert to the longstanding interpretation of the economic reality factors. Align the departments approach with courts FLSA interpretation and the economic reality test. The amount for small employers will increase again on Jan. 1, 2023 to $15 per hour. The DOL, HHS, and Treasury just released an FAQ that provides guidance on if Drug Manufacturers' Coupons disqualify Health Savings Accounts. 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. There is no limit in the Act on the number of hours employees aged . The Trump administration withdrew the 2016 proposal and proposed a lesser increase to $35,563, which was adopted in March 2019. 200 Constitution AveNW 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. $("span.current-site").html("SHRM China "); .h1 {font-family:'Merriweather';font-weight:700;} The .gov means its official. The law covers virtually every employer . Comments, which must be submitted from Oct. 13 to Nov. 28, 2022, should be submitted online or in writing to the Division of Regulations, Legislation and Interpretation, Wage and Hour Division, U.S. Department of Labor, Room S-3502, 200 Constitution Ave. NW, Washington, DC 20210. /*-->*/. Members may download one copy of our sample forms and templates for your personal use within your organization. . Topics covered: HR management, compensation & benefits, development, HR tech, recruiting and much more. var currentUrl = window.location.href.toLowerCase(); Ruling on a narrow, but significant question, the US Supreme Court affirmed that the white . 96% of members agree: "SHRMs information is very useful to me". An agency within the U.S. Department of Labor, 200 Constitution Ave NW 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 . 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 . .cd-main-content p, blockquote {margin-bottom:1em;} 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. 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