200 Constitution AveNW The policy directed U.S. According to the FTC, this new rule could increase wages by nearly $300 billion annually and expand career opportunities for about 30 million Americans. Shannon Meade is executive director of Littler's Workplace Policy Institute in Washington, D.C. 2023 Littler. Misclassification is a serious issue that . .agency-blurb-container .agency_blurb.background--light { padding: 0; } Topics covered: Talent acquisition, diversity and inclusivity in hiring, employer branding, performance evaluations and more. 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. Supreme Court: Salary, Not Daily Pay, Required for FLSA Overtime 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. Now is a great time to put your "HR house" in order when it comes to accurate exempt/non-exempt classifications and earning thresholds. The move would have entitled millions more employees to overtime pay, economists estimated, but it was halted when a federal judge enjoined the rule just days before it was set to take effect. 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. Ensure that all factors are analyzed without assigning a predetermined weight to a particular factor or set of factors. While the employer allowed other employees in her position to work from home, it denied her request and shortly thereafter terminated her employment. Department of Labor Intends to Extend Overtime Pay Requirements to More Workers. } The division encourages all stakeholders to participate in the regulatory process. 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. The agency already has missed its target for the overtime rule twice. Its latest regulatory agenda lists May 2023 as the target date for two key Fair Labor Standards Act (FLSA) developments: a proposed overtime rule and a final independent contractor rule. Copyright 2023 LexisNexis Risk Solutions Group. For questions or additional information, contact Reichenberg atneilreichenberg@yahoo.com. Once proposed, stakeholders will have an opportunity to comment before the agency finalizes its rule. Please enable scripts and reload this page. #block-googletagmanagerfooter .field { padding-bottom:0 !important; } The move would have entitled millions more employees to overtime pay, economists estimated, but it was halted when a federal judge. The overtime rule was first slated for April 2022 and then for October 2022, so another delay would not be unusual. 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. To request permission for specific items, click on the reuse permissions button on the page where you find the item. Reposted with permission. The May goal represents a second delay. According to the EEOCs lawsuit, Ronisha Moncrief worked for ISS Facility Services, Inc. as a health and safety manager. Review Administrator Interpretations, Opinion and Ruling Letters as well as pertinent chapters of the WHD Field Operations Handbook. ol{list-style-type: decimal;} Typically, these semi-annual agendas are issued in the spring and fall and outline federal agency goals for the months ahead. On June 7, ICE sent its proposal to the Office of Information and Regulatory Affairs (OIRA). 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. Please purchase a SHRM membership before saving bookmarks. The amount for small employers will increase again on Jan. 1, 2023 to $15 per hour. While details of the 2022 proposed changes are forthcoming, organizations should prepare now to address pending challenges and associated opportunities. Monday, November 7, 2022. just days before it was set to take effect. FTC Proposed Rule Would Ban Noncompete Agreements The Federal Trade Commission (FTC) has proposed a rule that would ban employers from imposing noncompete agreements on their employees. These factors include the investment, control and opportunity for profit or loss factors. 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. Must be a Paid Member or a Free Trial Member to Access Content. [Mr. Fendly's statement may be found in the appendix.] (2015). Affiliate of the Society for Human Resource Management, Home Blog 2022 DOLS PROPOSED OVERTIME RULE. OSHA aims to complete a final rule by September. Please note that all such forms and policies should be reviewed by your legal counsel for compliance with applicable law, and should be modified to suit your organizations culture, industry, and practices. /*-->*/. Learn how SHRM Certification can accelerate your career growth by earning a SHRM-CP or SHRM-SCP. A final rule on improving tracking of workplace injuries and illnesses is slated for December, as well. 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 . Biden's DOL may seek to increase the threshold even greater than the 2016 proposal under Obama. 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. Joint-employer status under the National Labor Relations Act. 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. Effective Jan. 1, 2020, the federal minimum salary threshold increased to $684 a week. The background: The overtime rule, part of the . The U.S. Department of Labor (DOL) announced in its spring regulatory agenda in mid-June that a proposed new overtime rule will be released later this year. 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. Jan 23, 2023 | Neil Reichenberg, HRCI Contributing Writer. .cd-main-content p, blockquote {margin-bottom:1em;} 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 . represent to a worker, under certain circumstances, that the worker is subject to a noncompete agreement. 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. Track your regular work hours, break time, and overtime hours. The EEOC reported that in resolving the lawsuit, the employer agreed to a two-year consent decree; will pay the former employee $47,500 in monetary damages; train its employees on the ADA; make changes to its employment policies; and allow the EEOC to monitor how it handles future requests for accommodation. The key labor and employment regulatory actions included in the fall agenda are listed below. .table thead th {background-color:#f1f1f1;color:#222;} Please purchase a SHRM membership before saving bookmarks. Members may download one copy of our sample forms and templates for your personal use within your organization. Do you need help with your HR questions? They are not intended either as a substitute for professional advice or judgment or to provide legal or other advice with respect to particular circumstances. Currently, the Department of Labor requires that employees covered by the Fair Labor Standards Act must receive overtime pay for working more than 40 hours in a workweek, unless the employee is covered by certain exemptions. 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). 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. By NAM News Room May 6, 2022 2:45pm. | 2 p.m. 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. The proposed rule . As the fight in Congress and the court of public opinion continues with respect to the proposed legislation to raise the federal minimum wage supported by President Obama, the White House has announced broad proposed reforms to the Department of Labor (DOL) regulations defining the exemptions from overtime under the Fair Labor Standards Act (FLSA). The proposed rule, which would rescind and replace a prior rule published in January 2021, would shift the analysis of whether a worker is an employee of a business for purposes . Every employer of employees subject to the Fair Labor Standards Act's minimum wage provisions must post, and keep posted, a notice explaining the Act in a conspicuous place in all of their establishments. When autocomplete results are available use up and down arrows to review and enter to select. Get the free daily newsletter read by industry experts. Restore the multifactor, totality-of-the-circumstances analysis to determine whether a worker is an employee or an independent contractor under the FLSA. The DOL, HHS, and Treasury just released an FAQ that provides guidance on if Drug Manufacturers' Coupons disqualify Health Savings Accounts. .paragraph--type--html-table .ts-cell-content {max-width: 100%;} Changes to overtime pay requirements have beenimplementedthrough regulations under both the Obama and Trump administrations. More than 100 business and industry groups are urging the U.S. Department of Labor to seek public input before it releases a highly anticipated rule to update overtime pay regulations that is expected to extend time-and-a-half wages to more workers. .manual-search-block #edit-actions--2 {order:2;} The DOL's new overtime rule is expected to raise the minimum salary for most overtime-exempt employees and . Federal government websites often end in .gov or .mil. These exemptions are commonly referred to as the white-collar or EAP exemptions. On June 15, 2012, theDHS established the DACA policy. Your session has expired. Start Preamble AGENCY: Wage and Hour Division, Department of Labor. }. 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. There is no limit in the Act on the number of hours employees aged . Federal law currently requires overtime pay only for employees who earn an annual salary of less than $35,568, although many such workers are excluded. 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. $("span.current-site").html("SHRM MENA "); Please log in as a SHRM member before saving bookmarks. EEOC Seeks Comments on Strategic Enforcement Plan The Equal Employment Opportunity Commission (EEOC) has published for public comment, a draft Strategic Enforcement Plan. On June 21, the Biden administration released the anticipated Spring 2022 Unified Agenda of Regulatory and Deregulatory Actions (Regulatory Agenda), providing the public with a detailed glimpse into the regulatory and deregulatory activities under development across approximately 67 federal departments, agencies and commissions. The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely. The following policy statements* will be included in your export: *Use of this material is governed by XpertHRs Terms and Conditions. Copyright 2023 HRCI. $('.container-footer').first().hide(); A new overtime rule from the U.S. Department of Labor is likely to change some of the existing rule's white-collar exemptions. 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].. 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. State law requires [] For example, the lack of transparency in knowing what to expect makes it more difficult to hold the administrative state accountable for its plans. Despite relying on the labor of millions of workers to provide their services, platform companies have established a business model on the premise that they employ no one. [CDATA[/* >
