In closing AMB applauds the substantial effort of the Department of Labor in overhauling these regulations. Oct 11 2022 10:37 AM EDT Updated Tue, . 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. 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. In the spring regulatory agenda, the U.S. Department of Homeland Security (DHS) announced that it plans to issue a final rule on Deferred Action for Childhood Arrivals (DACA) in August. 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. . Agendas are generally released in the fall and spring and set target dates for each agency and sub-agencys regulatory actions for the coming year. In the Fall 2021 Regulatory Agenda, WHD announced their intention to move forward with the NPRM with the goal to update the salary level requirement of the section 13(a)(1) exemption [under the FLSA].. div#block-eoguidanceviewheader .dol-alerts p {padding: 0;margin: 0;} XpertHR is part of the LexisNexis Risk Solutions Group portfolio of brands. $("span.current-site").html("SHRM China "); The new rule goes into effect January 1, 2020. Please enable scripts and reload this page. FLSA requirements relating to minimum wage, overtime, and . While employers should be monitoring these potential changes, the regulatory process is still in the early stages, said Jim Plunkett, an attorney with Ogletree Deakins in Washington, D.C. "At this time, stakeholders do not even know what changes the DOL will propose, much less finalize," he said. } else if(currentUrl.indexOf("/about-shrm/pages/shrm-mena.aspx") > -1) { 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, Webinar Many unions and other worker advocates believe the DOL should match or exceed the $921 salary level of the 2016 proposed rule, with several groups demanding the salary level be set at $1,000 per week. .manual-search ul.usa-list li {max-width:100%;} Before sharing sensitive information, make sure youre on a federal government site. An official website of the United States government. 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. . "This type of change would also disqualify many currently exempt employees from their current exempt status," he said. .usa-footer .grid-container {padding-left: 30px!important;} Learn how SHRM Certification can accelerate your career growth by earning a SHRM-CP or SHRM-SCP. #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 two areas of anticipated revision are to the salary level and duties tests for an employee to be exempt from overtime pay. 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. The new proposal is likely to be issued in the near future and could be issued as early as this month. To request permission for specific items, click on the reuse permissions button on the page where you find the item. When autocomplete results are available use up and down arrows to review and enter to select. 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 . After a new overtime rule is proposed, the public will have at least 30 days to comment on it before the DOL can issue a final rule. 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. One other item that may be in play is the duties test, Boonin added. 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.". In 2016, a proposed change would have moved the salary threshold from $455 per week ($23,660 annualized) to $913 per week ($47,476). [CDATA[/* > -1) { The DOL plans to make the changes effective in 2023. The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely. Author: Michael Cardman, XpertHR Senior Legal Editor. Agriculture Acquisition Regulation: Internal Policy and Procedural Updates and Technical Changes. This website uses cookies to understand your use of our website and to give you a better experience. The proposed rule would provide guidance on classifying workers and seeks to combat employee misclassification. Procedures on voluntary recognitionof unions. Congress must also have keen insight of the administration's regulatory plans to assess its budget requests and operations. var currentUrl = window.location.href.toLowerCase(); 96% of members agree: "SHRMs information is very useful to me". var temp_style = document.createElement('style'); #block-googletagmanagerfooter .field { padding-bottom:0 !important; } | 2 p.m. Ensure that all factors are analyzed without assigning a predetermined weight to a particular factor or set of factors. A vast majority of organizations across numerous industries face potential compliance and monetary impacts if the legislation passes. The proposed overtime rule will be published in May, according to the agenda, which lists the status of anticipated regulatory actions. }. As an update, the April deadline has passed, but it is now anticipated that the DOL intends to propose new FLSA overtime rules this October. Typically, these semi-annual agendas are issued in the spring and fall and outline federal agency goals for the months ahead. This final rule went into effect January 1, 2020, and it remains in effect today. The DHS has appealed the district court's decision. overtime pay and the ability to organize into unions. Please log in as a SHRM member before saving bookmarks. Members may download one copy of our sample forms and templates for your personal use within your organization. All rights reserved. NAM Vice President of Infrastructure, Innovation and Human Resources Policy Robyn Boerstling joined us to explain what's happening. By: Jenny R. Yang February 28, 2023. Need help with a specific HR issue like coronavirus or FLSA? Whitepaper & Research Library India & APAC, Advanced Certificate in Human Resource Management (ACHRM), Advanced Human Resource Management Program (AHRMP), Fall 2022 Unified Agenda of Regulatory and Deregulatory Actions, Proposed Overtime Rule Scheduled to Be Published in May, New OSHA Guidance Clarifies Return-to-Work Expectations, Trump Suspends New H-1B Visas Through 2020, Faking COVID-19 Illness Can Have Serious Consequences, White House Takes Action Against Migrant Child Labor, How to Handle Overtime, Meal Break and Other Wage and Hour Crises. 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. From April through June 2022, DOL held several listening sessions for interested stakeholders to discuss any support or concerns they may have with the anticipated rulemaking. CUPA-HR filedcommentsin opposition to the Trump administrations regulations on the issue andin responseto the Biden administrations RFI. 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. Review Administrator Interpretations, Opinion and Ruling Letters as well as pertinent chapters of the WHD Field Operations Handbook. Employment and Training Administration Strengthening Wage Protections for the Temporary and Permanent Employment of Certain Aliens in the United States, In October 2022, DOLs Employment and Training Administration (ETA) plans to issue an NPRM to establish a new wage methodology for setting prevailing wage levels for H-1B/H-1B1/E-3 and PERM programs consistent with the requirements of the Immigration and Nationality Act. The proposal will likely amend the Trump administrations final rule that was scheduled to take effect on November 14, 2022, but was subsequently vacated by a federal court in June 2021. Employers should prepare now to review their workforce for exempt/non-exempt status to ensure they are compliant with the new overtime rule before the effective date is launched. 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. Comments on the draft plan must be submitted by February 9, 2023. Many unions and other worker advocates believe the DOL should match or exceed the $921 salary level of the 2016 proposed rule, with several groups demanding the salary level be set at $1,000 per week. 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. -1) { The policy directed U.S. Any information you send to Locke Lord LLP through this website is on a non-confidential and non-privileged basis. Gallagher supports organizations with comprehensive solutions to include exemption review, compensation and classification structures, enhanced management of ongoing joint-employer challenges and implementation strategies. Ruling on a narrow, but significant question, the US Supreme Court affirmed that the white . Many unions and other worker advocates believe the DOL should match or exceed the $921 salary level of the 2016 proposed rule, with several groups demanding the . The proposed rule would provide guidance on classifying workers and seeks to combat employee misclassification. Department of Labor Intends to Extend Overtime Pay Requirements to More Workers. The U.S. Department of Labor has rescheduled the release of its proposed salary basis threshold rule for May. 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. 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