Last fall, the DOL said it would propose new overtime rules - which are expected to raise the minimum salary for most overtime-exempt employees and possibly update the . Modify the duties tests so more employees are classified as non-exempt, and. $(document).ready(function () { Gain the intel you need now to successfully anticipate and navigate employment laws, stay compliant and mitigate legal risks. A vast majority of organizations across numerous industries face potential compliance and monetary impacts if the legislation passes. .dol-alert-status-error .alert-status-container {display:inline;font-size:1.4em;color:#e31c3d;} 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 . */. "Snowy Labor Department Sign" [photograph]. Marcus G. Keegan, EEOC regional attorney for the Atlanta District Office stated, The ADA requires employers to provide reasonable accommodations to employees with disabilities to ensure those with disabilities have an equal opportunity to work to their full ability. June 27, 2022. .manual-search ul.usa-list li {max-width:100%;} 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 . #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;} Trumps DOL then revisited the threshold, agreeing that an increase was needed, but one far below the rate Democrats had planned. According to the FTC, this new rule could increase wages by nearly $300 billion annually and expand career opportunities for about 30 million Americans. The Federal Trade Commission has issued a proposed rule that would ban employers from imposing noncompete agreements on their workers. The salary basis threshold was increased in 2019 from $23,660/year to $35,568/year. EEOC Seeks Comments on Strategic Enforcement Plan The Equal Employment Opportunity Commission (EEOC) has published for public comment, a draft Strategic Enforcement Plan. The U.S. Department of Labor in September 2019 updated the federal overtime rules regarding executive, administrative, and professional workers. else if(currentUrl.indexOf("/about-shrm/pages/shrm-mena.aspx") > -1) { Updated October 25, 2022: The DOL has extended the comment period for this proposed rule until December 13, 2022. 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. Align the departments approach with courts FLSA interpretation and the economic reality test. Eliminating recruitment and hiring barriers. These changes moved the threshold to $684 per week ($35,568 annualized) and allowed for up to 10% of non-discretionary bonuses to satisfy threshold requirements. ET, Webinar Another increase has long been on the Biden administrations agenda, but it has not said what dollar figure it has in mind. In the February NPRM, USDA provided only 32 days for stakeholder comment submissions on the proposal. The proposed rule, which would rescind and replace a prior rule published in January 2021, would shift the analysis of whether a worker is an employee of a business for purposes . Please confirm that you want to proceed with deleting bookmark. 200 Constitution AveNW Copyright 2023 LexisNexis Risk Solutions Group. Author: Michael Cardman, XpertHR Senior Legal Editor. When finalized, the plan will set forth the EEOCs enforcement priorities. Then the final rule would need to take effect no sooner than 60 days after it is published in the Federal Register, assuming it is classified as a major rule. All rights reserved. Minimum Wages Are On the Rise in Several States. The DOL noted in its agenda that the Occupational Safety and Health Administration (OSHA) has already issued an emergency temporary standard to address the danger of COVID-19 in health care workplaces. Virtual & Washington, DC | February 26-28, 2023. p.usa-alert__text {margin-bottom:0!important;} var currentLocation = getCookie("SHRM_Core_CurrentUser_LocationID"); Topics covered: Pay & bonuses, salary history, pay transparency, raises, total rewards, and more. p:first-child.is-empty.d-none, .ms-rtestate-field > .fltter .is-empty.d-none, .ZWSC-cleaned.is-empty.d-none {display:block !important;}'; }); if($('.container-footer').length > 1){ DOL/Employee Benefits Security Administration (EBSA) The courts blocked this proposal shortly before it was scheduled for implementation. Please log in as a SHRM member. 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. 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 . The deadline to announce such changes was initially set for April 2022 but has since seen several delays. 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 . Generally, the rule applies to any salaried worker who does not supervise other workers and makes less than $684 a week . The overtime salary threshold limits will increase for the following states: California To qualify for the overtime exemption, licensed physicians and surgeons must earn at least $91.07 per hour. . There is no limit in the Act on the number of hours employees aged 16 and older may work in any workweek. 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. State law requires [] The U.S. Department of Labor (DOL) recently published its spring regulatory agenda containing a tentative date of October 2022 for a proposed overtime rule. CUPA-HR participated in all of the calls, expressing our concerns with the timing of the rulemaking as it relates to the ongoing challenges of the COVID-19 pandemic, a historically tight labor market, and increasing inflation. The U.S. Department of Labor has rescheduled the release of its proposed salary basis threshold rule for May. Lee Schreter, an attorney with Littler in Atlanta, said she wouldn't be surprised if the DOL tightens up the administrative exemption. Shannon Meade is executive director of Littler's Workplace Policy Institute in Washington, D.C. 2023 Littler. ACTION: Notice of proposed rulemaking; request for comments. 2022. By NAM News Room May 6, 2022 2:45pm. OSHA aims to complete a final rule by September. 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. Learn how SHRM Certification can accelerate your career growth by earning a SHRM-CP or SHRM-SCP. 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). One other item that may be in play is the duties test, Boonin added. The Act applies on a workweek basis. 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. Shortly thereafter, President Donald Trump took office and DOL abandoned its defense of the rule. While the employer allowed other employees in her position to work from home, it denied her request and shortly thereafter terminated her employment. Reposted with permission. Employees paid below that figure must receive time-and-one-half their regular rate of pay when they work more than 40 hours in a workweek. The most common exemption categories are known as the white collar exemptions: executive, administrative and professional. An agency within the U.S. Department of Labor, 200 Constitution Ave NW You have successfully saved this page as a bookmark. ol{list-style-type: decimal;} Supreme Court: Salary, Not Daily Pay, Required for FLSA Overtime Exemptions. 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 Copyright 2023 HRCI. 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 . Though it marked the first increase to the FLSA's overtime threshold in over a . The overtime rule was first slated for April 2022 and then for October 2022, so another delay would not be unusual. $("span.current-site").html("SHRM China "); Many in the business community believe that current hiring and retention issues, supply chain disruptions, and inflationary pressures are all reasons why the DOL should not proceed with a rulemaking.". 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