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. For example, the lack of transparency in knowing what to expect makes it more difficult to hold the administrative state accountable for its plans. Agency: Department of Labor(DOL) Priority: Economically Significant RIN Status: Previously published in the Unified Agenda Agenda Stage of Rulemaking: Proposed Rule Stage Major: Yes Unfunded Mandates: Undetermined CFR Citation: 29 CFR 541 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. Though it marked the first increase to the FLSA's overtime threshold in over a . Subscribe to HR Dive for top news, trends & analysis, The free newsletter covering the top industry headlines, Talent Attraction and Retention for 2023: Finance and HR leaders should look to on-demand pay,, The Omnia Group Releases 2023 Annual Talent Trends Report, TimeForge Integrates with Careerjet to Give Businesses Access to Thousands of Job Seekers, Talkspace Launches First-of-its-Kind Portal Dedicated to Employee Mental Health Resources, By signing up to receive our newsletter, you agree to our. The following roles are exempt from overtime: The salary test is where we expect to see changes. The courts blocked this proposal shortly before it was scheduled for implementation. Comments on the draft plan must be submitted by February 9, 2023. You have successfully saved this page as a bookmark. In the Biden administration's fall 2021 regulatory agenda, the Department of Labor (DOL)'s Wage and Hour Division (WHD) announced that it planned to release in April 2022 a Notice of Proposed Rulemaking (NPRM) changing criteria for the "executive, administrative and professional" exemptions from the overtime pay requirements under the Fair Labor Standards Act (FLSA). All rights reserved. Misclassification deprives workers of their federal labor protections, including their right to be paid their full, legally earned wages. .manual-search ul.usa-list li {max-width:100%;} } Members can get help with HR questions via phone, chat or email. Please understand that your communications with Locke Lord LLP through this website do not constitute or create an attorney-client relationship with Locke Lord LLP. The Federal Trade Commission has issued a proposed rule that would ban employers from imposing noncompete agreements on their workers. If such an increase is proposed, it will impact millions of workers and almost certainly meet resistance in federal courts from private employers and business groups. 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. Effective Jan. 1, 2022, the minimum wage in California will increase to $15 per hour for large employers with 26 or more employees; it will increase to $14 for small employers with fewer than 25 employees. Another increase has long been on the Biden administrations agenda, but it has not said what dollar figure it has in mind. When the economy is unstable, employers are faced with difficult decisions around staffing, pay and benefits. 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. Please press Ctrl/Command + D to add a bookmark manually. By NAM News Room May 6, 2022 2:45pm. 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. 2022: Fall 2022 Rulemaking Comments. DOL/Employee Benefits Security Administration (EBSA) Biden's DOL may seek to increase the threshold even greater than the 2016 proposal under Obama. In fact, Walsh indicated in the June hearing that the DOL thinks the rule should be reviewedand possibly updatedregularly. The following policy statements* will be included in your export: *Use of this material is governed by XpertHRs Terms and Conditions. #block-googletagmanagerfooter .field { padding-bottom:0 !important; } Topics covered: Talent acquisition, diversity and inclusivity in hiring, employer branding, performance evaluations and more. NAM Vice President of Infrastructure, Innovation and Human Resources Policy Robyn Boerstling joined us to explain what's happening. Although there are no legal implications regarding the administration's failure to issue the agenda in a timely manner, there are important considerations for the regulated community. With so many agencies experiencing staffing shortages and difficulties hiring new . Updated October 25, 2022: The DOL has extended the comment period for this proposed rule until December 13, 2022. Overtime Pay. 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). Many experts expect the DOL to set the salary threshold around $800 the mid-point between the current level and the proposed 2016 level. Law360 (June 22, 2022, 2:05 PM EDT) -- The U.S. Department of Labor plans to propose a rule in October that would overhaul certain workers' entitlement to overtime pay, the agency said, pushing . President Joe Biden directed the DHS on Jan. 20, 2021, to take all appropriate actions to preserve and strengthen DACA, consistent with applicable law. Topics covered: National employment laws, harassment, accommodations, training, and more. ET, Webinar Comments on the proposed rule are due by March 10, 2023. The agenda says they will have proposed rule revisions and . Those changes, however, were less significant than the 2016 efforts to modify FLSA provisions, which were halted later due to a preliminary injunction. "If any of these issues make their way into new regulations in any significant way, litigation is assured.". New DOL Overtime Threshold in 2022. Before the Fifth Circuit reviewed Judge Mazzants decision, the Trump administration rescinded the rule and raised the salary threshold to the current $684/week standard. Build specialized knowledge and expand your influence by earning a SHRM Specialty Credential. It is not intended to provide specific legal, tax or other professional advice. Topics covered: Culture, executive buy-in, discrimination, training, equal pay, and more. 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 . These exemptions are commonly referred to as the white-collar or EAP exemptions. An official website of the United States government. $('.container-footer').first().hide(); You may be trying to access this site from a secured browser on the server. 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.". The site is secure. "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 . 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. According to DOL, the 40th percentile equated to $921 per week in 2013 and will be about $970 when the rule is . 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 . 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. While the specifics remain unknown, some labor law experts speculate that it will: Increase the weekly threshold from $684 to $900--$1,000. The agency took meetings and held online listening sessions with stakeholders last year. A new overtime rule from the U.S. Department of Labor is likely to change some of the existing rule's white-collar exemptions. 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. When autocomplete results are available use up and down arrows to review and enter to select. According to the EEOCs lawsuit, Ronisha Moncrief worked for ISS Facility Services, Inc. as a health and safety manager. To request permission for specific items, click on the reuse permissions button on the page where you find the item. Final Regulatory Text. Labor Rights. The federal overtime provisions are contained in the Fair Labor Standards Act (FLSA). Revert to the longstanding interpretation of the economic reality factors. In closing AMB applauds the substantial effort of the Department of Labor in overhauling these regulations. On September 24, 2019, the Department of Labor issued its final overtime rule to increase the minimum salary threshold for executive, administrative and professional exemptions from $455 per week ($23,660 annually) to $684 per week ($35,568 annually). The proposed overtime rule will be published in May, according to the agenda. $(document).ready(function () { var currentLocation = getCookie("SHRM_Core_CurrentUser_LocationID"); The Department delayed the rule on March 4, 2021, and then withdrew it on May 6, 2021, believing that it was inconsistent with the Fair Labor Standards Act's text and purpose. Review Administrator Interpretations, Opinion and Ruling Letters as well as pertinent chapters of the WHD Field Operations Handbook. [Mr. Fendly's statement may be found in the appendix.] Copyright 2023 HRCI. temp_style.textContent = '.ms-rtestate-field > p:first-child.is-empty.d-none, .ms-rtestate-field > .fltter .is-empty.d-none, .ZWSC-cleaned.is-empty.d-none {display:block !important;}'; DOL Plans Release of Overtime Rule in May In the most recent semi-annual regulatory agenda, the U.S. Department of Labor (DOL) announced that it plans to release in May the proposed salary basis threshold for overtime exemptions under the Fair Labor Standards Act (FLSA) for administrative, executive, and professional employees. 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. The new standard will revise the 2020 Trump Administrations final rule, which reversed the Obama-era NLRB decision in the 2015Browning-Ferris Industriescase and established that an entity can only be a joint employer if it actually exercises control over the essential terms and conditions of another employers employees. There are some in the department who believe that in order to be eligible for the exemption, an employee shouldn't be involved in any type of selling, she said. According to the IRS, the standard mileage rate for business use is based on an annual study of the fixed and variable costs of operating an automobile. 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. Please enable scripts and reload this page. Thank you again for providing me the opportunity to testify on the Department of Labor final overtime rule, and I would be happy to answer any questions that any of the members may have. Consistent with the presidential memorandum, the DHS published a notice of proposed rulemaking on Sept. 28, 2021, to consider all issues regarding DACA, including those identified by the district court relating to the policy's substantive legality. Webinar URL: https://www.complianceprime.com/details/980/new-proposed-overtime-rule-2022The Department of Labor will soon issue new . Neither Arthur J. Gallagher & Co., nor its affiliates provide accounting, legal or tax advice. The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely. 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