@media only screen and (min-width: 0px){.agency-nav-container.nav-is-open {overflow-y: unset!important;}} XpertHR is part of the LexisNexis Risk Solutions Group portfolio of brands. The FTC stated that the proposed rule would apply to employees, independent contractors, and volunteers. The law covers virtually every employer . 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. }
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. Learn how SHRM Certification can accelerate your career growth by earning a SHRM-CP or SHRM-SCP. Please enable scripts and reload this page. The FTC is accepting public comments on the proposed rule until March 10, 2023, and they can be submitted online. 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. @media (max-width: 992px){.usa-js-mobile-nav--active, .usa-mobile_nav-active {overflow: auto!important;}} DOL had previously planned to release the proposed rule in October 2022. We anticipate the proposed new level will be higher. 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.". When finalized, the plan will set forth the EEOCs enforcement priorities. Notably absent from the spring regulatory agenda is an entry for an FLSA independent-contractor rulemaking, given that a recent blog post on the DOL's website stated that such a proposal is in the works, Plunkett said. To request permission for specific items, click on the reuse permissions button on the page where you find the item. 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). 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. The DOL's December agenda appears to be the first real step in that direction, announcing it will propose an update in . It is possible that DHS will use that feedback to develop and implement this NPRM. else if(currentUrl.indexOf("/about-shrm/pages/shrm-mena.aspx") > -1) {
Need help with a specific HR issue like coronavirus or FLSA? By: Jenny R. Yang February 28, 2023. 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. 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. Learn more by reading fact sheets that cover a variety of overtime topics. The DOL's new overtime rule is expected to raise the minimum salary for most overtime-exempt employees and . In the February NPRM, USDA provided only 32 days for stakeholder comment submissions on the proposal. . 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. 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. "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 . $('.container-footer').first().hide();
It need not coincide with the calendar week, but may begin on any day and at any hour of the day. This business model . The department believes the new rule would preserve essential worker rights and provide consistency for regulated entities. 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). 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. }
For example, the lack of transparency in knowing what to expect makes it more difficult to hold the administrative state accountable for its plans. Although the DOL will almost certainly grant employers several months of lead-up time before implementing the new threshold, understanding the potential impact of a dramatic increase now will help employers adjust in the future. 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. Regardless of the ultimate increase in the salary level, employers who rely on the white-collar exemptions should be on notice of potential changes. Topics covered: National employment laws, harassment, accommodations, training, and more. However, Section 13(a)(1) of the FLSA provides an exemption from overtime pay for individuals employed as bona fide executive, administrative, and professional employees and who receive pay on a salary basis of not less than $684/week. . Colorado Maine New York The salary threshold for the overtime exemption varies based on geographical location. Lee Schreter, an attorney with Littler in Atlanta, said she wouldn't be surprised if the DOL tightens up the administrative exemption. Members may download one copy of our sample forms and templates for your personal use within your organization. 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. Washington, DC 202101-866-4-US-WAGE1-866-487-9243, Administrator Interpretations, Opinion and Ruling Letters, Resources for State and Local Governments. Different workweeks may be established for different employees or groups of employees. The exempt duties generally fall within those categories, and each category has different criteria: The salary level was last adjusted effective January 1, 2020 when it was raised to the $684 per week level (equivalent to $35,568 per year for a full-year worker). The overtime rule was first slated for April 2022 and then for October 2022, so another delay would not be unusual. Comments on the proposed rule are due by March 10, 2023. Must be a Paid Member or a Free Trial Member to Access Content. Access a collection of interactive online tools and presentations that address overtime pay requirements. In 2016, a proposed change would have moved the salary threshold from $455 per week ($23,660 annualized) to $913 per week ($47,476). Starting in June 2020, employees were required to return to work onsite full-time. June 29, 2022. USA August 24 2022. A vast majority of organizations across numerous industries face potential compliance and monetary impacts if the legislation passes. 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 . Get the free daily newsletter read by industry experts. 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." We help organizations develop a comprehensive understanding of state laws and regulations to inform investment across people strategies and operations. Start Preamble AGENCY: Wage and Hour Division, Department of Labor. 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. For questions or additional information, contact Reichenberg atneilreichenberg@yahoo.com. Trumps DOL then revisited the threshold, agreeing that an increase was needed, but one far below the rate Democrats had planned. Sign up for our newsletter and get the latest to your inbox. While details of the 2022 proposed changes are forthcoming, organizations should prepare now to address pending challenges and associated opportunities. Employers should carefully review all pay practices, exemptions from overtime, and potential FLSA liability in light of these potential changes. The May goal represents a second delay. The new proposal is likely to be issued in the near future and could be issued as early as this month. 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 . OSHA aims to complete a final rule by September. In 2016, a proposed change would have moved the salary threshold from $455 per week ($23,660 annualized) to $913 per week ($47,476). var currentLocation = getCookie("SHRM_Core_CurrentUser_LocationID");
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.]) Please confirm that you want to proceed with deleting bookmark. div#block-eoguidanceviewheader .dol-alerts p {padding: 0;margin: 0;} 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. Ensure that all factors are analyzed without assigning a predetermined weight to a particular factor or set of factors. keystyle mmc corp login; thomson reuters drafting assistant user guide. Therefore, do not send or include any information in your email that you consider to be confidential or privileged. 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