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. Neither Arthur J. Gallagher & Co., nor its affiliates provide accounting, legal or tax advice. Existing noncompete agreements would need to be rescinded and workers informed that they are no longer in effect. Please purchase a SHRM membership before saving bookmarks. Regardless of the ultimate increase in the salary level, employers who rely on the white-collar exemptions should be on notice of potential changes. In closing AMB applauds the substantial effort of the Department of Labor in overhauling these regulations. On Jan. 4, the Biden administration released its long-awaitedFall 2022 Unified Agenda of Regulatory and Deregulatory Actions. Averaging of hours over two or more weeks is not permitted. 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. Supreme Court: Salary, Not Daily Pay, Required for FLSA Overtime Exemptions. However, court challenges prevented the rule from taking effect and it was permanentlyenjoinedin September 2017. The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely. 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. The proposed rule . However, Schreter said, "I don't think they're going to give up on that.". Colorado Maine New York The salary threshold for the overtime exemption varies based on geographical location. .dol-alert-status-error .alert-status-container {display:inline;font-size:1.4em;color:#e31c3d;} Assist with the proper classification of employees and independent contractors under the FLSA. Generally, the rule applies to any salaried worker who does not supervise other workers and makes less than $684 a week . Separately, the National Labor Relations Board said it plans to propose in February 2022 an update to rules that govern when two or more employers are jointly liable . Please confirm that you want to proceed with deleting bookmark. The background: The overtime rule, part of the . The proposal will likely amend the Trump administration's final . In . The salary basis threshold has been raised numerous times since Congress enacted the FLSA in 1938. Many experts expect the DOL to set the salary threshold around $800 the mid-point between the current level and the proposed 2016 level. Copyright 2023 LexisNexis Risk Solutions Group. Require automatic future increases to the threshold. In the February NPRM, USDA provided only 32 days for stakeholder comment submissions on the proposal. 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. Lee Schreter, an attorney with Littler in Atlanta, said she wouldn't be surprised if the DOL tightens up the administrative exemption. According to the agency's regulatory agenda, this proposed rule is expected to address how to implement the exemption of executive, administrative and professional employees from the Fair Labor Standards Act's (FLSA) minimum wage and overtime . 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. While it is unclear whether the December NPRM will include the blacklisting language again, the abstract of the re-proposal states that the new proposed rule would be responsive to the comments received on our February 2022 proposal.. $('.container-footer').first().hide(); .manual-search ul.usa-list li {max-width:100%;} 2023 Locke Lord LLP | Attorney Advertising, Employee Benefits & Executive Compensation, Environmental, Social and Governance (ESG). NAM Vice President of Infrastructure, Innovation and Human Resources Policy Robyn Boerstling joined us to explain what's happening. 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 new rule goes into effect January 1, 2020. Shortly thereafter, President Donald Trump took office and DOL abandoned its defense of the rule. Conversely, there is nothing stopping the DOL from issuing new rules before its target dates, either. There is no limit in the Act on the number of hours employees aged 16 and older may work in any workweek. Topics covered: Culture, executive buy-in, discrimination, training, equal pay, and more. 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 Standards Act's (FLSA's) minimum wage and overtime requirements. 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). var currentUrl = window.location.href.toLowerCase(); The DOL promised to consider this feedback and may make changes to its draft rule before publishing a final version. 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 $82,732 by 2026, the letter said. .usa-footer .grid-container {padding-left: 30px!important;} Misclassification is a serious issue that denies workers rights and protections under federal labor standards, promotes wage theft, allows certain employers to gain an unfair advantage over law-abiding businesses, and hurts the economy at-large. March 21, 2022. DHS has provided temporary flexibility in the Form I-9 verification process since the beginning of the COVID-19 pandemic. The DOL's new overtime rule is expected to raise the minimum salary for most overtime-exempt employees and possibly update the duties tests as well. You may be trying to access this site from a secured browser on the server. else if(currentUrl.indexOf("/about-shrm/pages/shrm-mena.aspx") > -1) { Use of the service is subject to our terms and conditions. . While this aspect of the exemption rules is not anticipated to change with the 2022 proposed rule changes, the duties test is important to remember when considering the classification of a particular role. Additionally, not knowing regulatory priorities can have an impact on budget and resource planning for employers, especially during a time of high inflation and anticipated economic recission. Comments, which must be submitted from Oct. 13 to Nov. 28, 2022, should be submitted online or in writing to the Division of Regulations, Legislation and Interpretation, Wage and Hour Division, U.S. Department of Labor, Room S-3502, 200 Constitution Ave. NW, Washington, DC 20210. enter into or attempt to enter into a noncompete agreement with a worker; maintain a noncompete agreement with a worker; or. }); if($('.container-footer').length > 1){ DOL's Wage and Hour Division plans to develop and release a notice of proposed rulemaking . * * *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. Overtime Proposed Rule Release Planned in May, ISO/TC 260 HR Management and HRCI Global Standards Leadership, HRCI Certification for Military HR Personnel. A Davis-Bacon Act final rule is now scheduled for December. The DOL review and anticipated announcement represent a quick turnaround, given the previous update to overtime rules implemented in 2019 delivered the first substantive changes enacted since 2004. The Notice of Proposed Rulemaking was originally slated for April 2022 but then delayed to October of that year. Shortly thereafter, President Donald Trump took office and DOL abandoned its defense of the rule. 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 . 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. The DOL noted in its agenda that the Occupational Safety and Health Administration (OSHA) has already issued an emergency temporary standard to address the danger of COVID-19 in health care workplaces. CUPA-HR filedcommentsin opposition to the Trump administrations regulations on the issue andin responseto the Biden administrations RFI. For Long Island and Westchester County . 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. You have successfully saved this page as a bookmark. Among the subject matter priorities included in the draft plan are: IRS Increases Mileage Rates by Three Cents The Internal Revenue Service (IRS) advised that the optional standard mileage rates used to calculate the deductible costs of operating an automobile for business purposes increased by three cents to 65.5 cents per mile effective on January 1, 2023. var currentLocation = getCookie("SHRM_Core_CurrentUser_LocationID"); ol{list-style-type: decimal;} 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. These changes moved the threshold to $684 per week ($35,568 annualized) and allowed for up to 10% of non-discretionary bonuses to satisfy threshold requirements. Please log in as a SHRM member. 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 . DOL/Employee Benefits Security Administration (EBSA) Comments on the proposed rule are due by March 10, 2023. According to FTC Chair Lina M. Khan, Noncompetes block workers from freely switching jobs, depriving them of higher wages and better working conditions, and depriving businesses of a talent pool that they need to build and expand. The FTC cited research showing that noncompete agreements restrict the mobility of impacted workers thus harming competition in the labor markets. 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. $("span.current-site").html("SHRM MENA "); .paragraph--type--html-table .ts-cell-content {max-width: 100%;} Ruling on a narrow, but significant question, the US Supreme Court affirmed that the white . The key labor and employment regulatory actions included in the fall agenda are listed below. 200 Constitution AveNW .cd-main-content p, blockquote {margin-bottom:1em;} The proposal is expected to be issued in the near future. else if(currentUrl.indexOf("/about-shrm/pages/shrm-mena.aspx") > -1) { The FTC is accepting public comments on the proposed rule until March 10, 2023, and they can be submitted online. According to the agency's regulatory agenda, this proposed rule is expected to address how to implement the exemption of executive, administrative and professional employees from the Fair Labor . According to the FTC, this new rule could increase wages by nearly $300 billion annually and expand career opportunities for about 30 million Americans. With so many agencies experiencing staffing shortages and difficulties hiring new . /*-->*/. div#block-eoguidanceviewheader .dol-alerts p {padding: 0;margin: 0;} 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.. "This type of change would also disqualify many currently exempt employees from their current exempt status," he said. 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. In a case closely watched by the oil and gas industry, the United States Supreme Court ruled in Helix Entergy Solutions Group, Inc. v. Hewitt that an oil rig worker earning more than $200,000 a year was misclassified as exempt by his employer, in violation of the Fair Labor Standards Act (FLSA), and is entitled to unpaid overtime wages. The courts blocked this proposal shortly before it was scheduled for implementation. Get the Quickstart Guide for Employers. The most common exemption categories are known as the white collar exemptions: executive, administrative and professional. She would n't be surprised if the DOL tightens up the administrative exemption, blockquote margin-bottom:1em. Iso/Tc 260 HR Management and HRCI Global Standards Leadership, HRCI Certification Military! ] ] > * / difficulties hiring new Release Planned in may ISO/TC. Innovation and Human Resources Policy Robyn Boerstling joined us to explain what & # ;! 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