.agency-blurb-container .agency_blurb.background--light { padding: 0; } By NAM News Room May 6, 2022 2:45pm. Rescind the 2021 Independent Contractor Rule. 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. 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. #block-googletagmanagerfooter .field { padding-bottom:0 !important; } Rather than appeal the judge's decision, which was criticized by many unions and worker advocates, the Trump administration proposed a new rule in 2019 that elevated the overtime wage . This website uses cookies to understand your use of our website and to give you a better experience. Consulting and insurance brokerage services to be provided by Gallagher Benefit Services, Inc. and/or its affiliate Gallagher Benefit Services (Canada) Group Inc. Gallagher Benefit Services, Inc. is a licensed insurance agency that does business in California as "Gallagher Benefit Services of California Insurance Services" and in Massachusetts as "Gallagher Benefit Insurance Services." The two areas of anticipated revision are to the salary level and duties tests for an employee to be exempt from overtime pay. 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. * * *On October 11, 2022, the U.S. Department of Labor released a proposed rule to update the test for determining whether a worker is an employee under the Fair Labor Standards Act (FLSA) or an independent contractor. 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. 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. 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. 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. An HR Advisor is here to help by email, live chat, or phone. Final Regulatory Text. Overtime Pay. 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. Access a collection of interactive online tools and presentations that address overtime pay requirements. We also anticipate some proposed changes to the duties tests. Agriculture Acquisition Regulation: Internal Policy and Procedural Updates and Technical Changes. Last October, the DOL proposed a new independent contractor rule that would establish a version of the "economic realities test" as the standard for determining whether a worker is an employee or an independent contractor under the FLSA. Department of Labor Intends to Extend Overtime Pay Requirements to More Workers. The Equal Employment Opportunity Commission has settled a COVID discrimination case and also published for public comment its draft strategic enforcement plan. Let HR Dive's free newsletter keep you informed, straight from your inbox. 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). Neither members nor non-members may reproduce such samples in any other way (e.g., to republish in a book or use for a commercial purpose) without SHRMs permission. After the Trump administration started the rulemaking process anew, in September 2019, DOL issued a newfinal ruleraising the minimum salary level required for exemption from $23,660 annually to $35,568 annually. Procedures on voluntary recognitionof unions. 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 U.S. Department of Labor in September 2019 updated the federal overtime rules regarding executive, administrative, and professional workers. Before sharing sensitive information, make sure youre on a federal government site. 2022: Fall 2022 Rulemaking Comments. keystyle mmc corp login; thomson reuters drafting assistant user guide. 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.". View our privacy policy, privacy policy (California), cookie policy, supported browsers and access your cookie settings. It remains to be seen whether the DOL will follow its own timeline, however. SHRM Employment Law & Compliance Conference, Proposed Overtime Rule Now Projected to Come Out in Fall, 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. EEOC Seeks Comments on Strategic Enforcement Plan The Equal Employment Opportunity Commission (EEOC) has published for public comment, a draft Strategic Enforcement Plan. 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. Colorado Whistleblower, Anti-Retaliation, Non-Interference, and Notice-Giving Rules ("Colorado WARNING Rules") 7 CCR 1103-11 Sandra Parker-Murray 11.01.2022; Brian Polovoy 11.02.2022; Prevailing Wage and Residency (PWR) Rules 7 CCR 1103-6 Ion Cotsapas 10.05.2022; Wage Protection Rules 7 CCR 1103-7 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. .h1 {font-family:'Merriweather';font-weight:700;} Please log in as a SHRM member before saving bookmarks. Use of the service is subject to our terms and conditions. In fact, Walsh indicated in the June hearing that the DOL thinks the rule should be reviewedand possibly updatedregularly. The DOL's December agenda appears to be the first real step in that direction, announcing it will propose an update in . The federal overtime provisions are contained in the Fair Labor Standards Act (FLSA). However, Schreter said, "I don't think they're going to give up on that.". (2015). There is no limit in the Act on the number of hours employees aged 16 and older may work in any workweek. 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 proposed rule is intended to replace the 2021 independent contractor regulation. Trumps DOL then revisited the threshold, agreeing that an increase was needed, but one far below the rate Democrats had planned. 2022. The two areas of anticipated revision are to the salary level and duties tests for an employee to be exempt from overtime pay. The division encourages all stakeholders to participate in the regulatory process. On Jan. 4, the Biden administration released its long-awaitedFall 2022 Unified Agenda of Regulatory and Deregulatory Actions. While the employer allowed other employees in her position to work from home, it denied her request and shortly thereafter terminated her employment. In closing AMB applauds the substantial effort of the Department of Labor in overhauling these regulations. Before sharing sensitive information, make sure youre on a federal government site. Sign up for our newsletter and get the latest to your inbox. DOL addressed the topic again in 2019 and enacted changes on January 1, 2020. 10.19.2022 The Department of Labor is seeking public comment on or before November 28, 2022, regarding its proposed changes to the classification of independent contractors under the Fair Labor Standards Act. These exemptions are commonly referred to as the white-collar or EAP exemptions. 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. 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. 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. .usa-footer .container {max-width:1440px!important;} 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. DOL had previously planned to release the proposed rule in October 2022. It is possible that DHS will use that feedback to develop and implement this NPRM. How much of a salary increase the DOL will propose and if it will seek to index the threshold to some cost of living measure remains unknown at this time. According to FTC Chair Lina M. Khan, Noncompetes block workers from freely switching jobs, depriving them of higher wages and better working conditions, and depriving businesses of a talent pool that they need to build and expand. The FTC cited research showing that noncompete agreements restrict the mobility of impacted workers thus harming competition in the labor markets. The Trump administration withdrew the 2016 proposal and proposed a lesser increase to $35,563, which was adopted in March 2019. When finalized, the plan will set forth the EEOCs enforcement priorities. Reposted with permission. Learn more about the Wage and Hour Division. The department believes the new rule would preserve essential worker rights and provide consistency for regulated entities. .agency-blurb-container .agency_blurb.background--light { padding: 0; } As with the overtime rule, the final independent contractor rule would take effect no sooner than 60 days after it is published in the Federal Register. 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. 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;}'; On July 16, 2021, the U.S. District Court for the Southern District of Texas vacated the June 2012 memorandum that created the DACA policy and permanently blocked the DHS from administering the DACA program and from reimplementing DACA without compliance with the Administrative Procedure Act. Do you need help with your HR questions? .paragraph--type--html-table .ts-cell-content {max-width: 100%;} DOL addressed the topic again in 2019 and enacted changes on January 1, 2020. An agency within the U.S. Department of Labor, 200 Constitution Ave NW Typically, these semi-annual agendas are issued in the spring and fall and outline federal agency goals for the months ahead. 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.
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