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ol{list-style-type: decimal;} The DOL initially planned to issue this new proposal in April 2022. The department believes the new rule would preserve essential worker rights and provide consistency for regulated entities. Washington, DC 202101-866-4-USA-DOL1-866-487-2365www.dol.gov, Misclassification continues to deny workers rightful wages; hurt businesses, economy, Industry-Recognized Apprenticeship Programs (IRAP), Bureau of International Labor Affairs (ILAB), Employee Benefits Security Administration (EBSA), Employees' Compensation Appeals Board (ECAB), Employment and Training Administration (ETA), Mine Safety and Health Administration (MSHA), Occupational Safety and Health Administration (OSHA), Office of Administrative Law Judges (OALJ), Office of Congressional and Intergovernmental Affairs (OCIA), Office of Disability Employment Policy (ODEP), Office of Federal Contract Compliance Programs (OFCCP), Office of Labor-Management Standards (OLMS), Office of the Assistant Secretary for Administration and Management (OASAM), Office of the Assistant Secretary for Policy (OASP), Office of the Chief Financial Officer (OCFO), Office of Workers' Compensation Programs (OWCP), Ombudsman for the Energy Employees Occupational Illness Compensation Program (EEOMBD), Pension Benefit Guaranty Corporation (PBGC), Veterans' Employment and Training Service (VETS), Economic Data from the Department of Labor, Learn more about the Wage and Hour Division, Federal court orders Hyundai, Kia auto parts manufacturer to stop employing minors illegally, end oppressive child labor law violations, US Department of Labor hosts annual conference for nations mine safety, health trainers at National Mine Health and Safety Academy, Oct. 11-13. 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. The proposal is expected to be issued in the near future. Those changes, however, were less significant than the 2016 efforts to modify FLSA provisions, which were halted later due to a preliminary injunction. The proposal will likely amend the Trump administration's final . .usa-footer .container {max-width:1440px!important;} The deadline to announce such changes was initially set for April 2022 but has since seen several delays. 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 DOL, HHS, and Treasury just released an FAQ that provides guidance on if Drug Manufacturers' Coupons disqualify Health Savings Accounts. .dol-alert-status-error .alert-status-container {display:inline;font-size:1.4em;color:#e31c3d;} 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 . 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 . On June 15, 2012, theDHS established the DACA policy. Please enable scripts and reload this page. .manual-search ul.usa-list li {max-width:100%;} 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. 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 . The NPRM proposes a framework more consistent with longstanding judicial precedent on which employers have relied to classify workers as employees or independent contractors under the FLSA. 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. 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. 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. 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. DHS has provided temporary flexibility in the Form I-9 verification process since the beginning of the COVID-19 pandemic. 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. While the specifics remain unknown, some labor law experts speculate that it will: Increase the weekly threshold from $684 to $900--$1,000. var currentUrl = window.location.href.toLowerCase(); var currentLocation = getCookie("SHRM_Core_CurrentUser_LocationID"); The agency took meetings and held online listening sessions with stakeholders last 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].. However, court challenges prevented the rule from taking effect and it was permanentlyenjoinedin September 2017. Your browser does not allow automatic adding of bookmarks. 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. Get the Quickstart Guide for Employers. Another item on the list of DOL priorities may be the creation of an automatic annual or periodic increase to the salary level by indexing it to the consumer price index or another economic indicator so that the amount will increase without the DOL having to undertake formal rulemaking. just days before it was set to take effect. 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 proposed rule . Please log in as a SHRM member. It is not intended to provide specific legal, tax or other professional advice. When finalized, the plan will set forth the EEOCs enforcement priorities. Ultimately, Judge Amos Mazzant in the United States District Court for the Eastern District of Texas enjoined the new threshold from going into effect after determining the salary increase of more than 100% contravened Congresss intent by supplanting the job duties test and creating a de facto salary-only test. At the time, the DOL estimated that the $921/week threshold would make more than 4.2 million workers ineligible for a white-collar exemption and eligible for overtime pay. Assist with the proper classification of employees and independent contractors under the FLSA. An agency within the U.S. Department of Labor, 200 Constitution Ave NW Certain groups have been advocating for a tightening of the duties tests, claiming that the tests are currently too loose and are toothless. We will advise you when the proposed test is finally issued. Trumps DOL then revisited the threshold, agreeing that an increase was needed, but one far below the rate Democrats had planned. United States Department of Labor Washington, DC 20210 Re: Overtime Regulations Proposed in the Fall 2021 Regulatory Agenda Dear Acting Administrator Looman: . Section 13(a)(1) of the FLSA, codified at 29 U.S.C. OSHA aims to complete a final rule by September. #block-googletagmanagerheader .field { padding-bottom:0 !important; } var currentLocation = getCookie("SHRM_Core_CurrentUser_LocationID"); USCIS Modernizing H-1B Requirements and Oversight and Providing Flexibility in the F-1 Program, In May 2023, the Department of Homeland Security (DHS)s United States Citizenship and Immigration Services (USCIS) plans to release an NPRM to amend its regulations governing H-1B specialty occupation workers and F-1 students who are the beneficiaries of timely filed H-1B cap-subject petitions. The NPRM will specifically propose to revise the regulations relating to employer-employee relationship and provide flexibility for start-up entrepreneurs; implement new requirements and guidelines for site visits including in connection with petitions filed by H-1B dependent employers whose basic business information cannot be validated through commercially available data; provide flexibility on the employment start date listed on the petition (in limited circumstances); address cap-gap issues; bolster the H-1B registration process to reduce the possibility of misuse and fraud in the H-1B registration system; and clarify the requirement that an amended or new petition be filed where there are material changes, including by streamlining notification requirements relating to certain worksite changes, among other provisions., ICE Optional Alternative to the Physical Examination Associated With Employment Eligibility Verification (Form I-9), According to the Regulatory Agenda, DHS plans to issue an NPRM in July 2022 to revise employment eligibility verification regulations to allow the Secretary to authorize alternative document examination procedures in certain circumstances or with respect to certain employers.. 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. 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. $(document).ready(function () { In October 2022, DOL's 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.". 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 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 DOL's December agenda appears to be the first real step in that direction, announcing it will propose an update in . 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. Use of the service is subject to our terms and conditions. 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 proposed changes will impact Employers and employees. Joint-employer status under the National Labor Relations Act. 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. Members can get help with HR questions via phone, chat or email. DOL's Wage and Hour Division plans to develop and release a notice of proposed rulemaking . The agenda says they will have proposed rule revisions and . The department said in the regulatory agenda that "the danger faced by health care workers continues to be of the highest concern and measures to prevent the spread of COVID-19 are still needed to protect them." p.usa-alert__text {margin-bottom:0!important;} This website uses cookies to understand your use of our website and to give you a better experience. if(currentUrl.indexOf("/about-shrm/pages/shrm-china.aspx") > -1) { The DOL's new overtime rule is expected to raise the minimum salary for most overtime-exempt employees and . The new 2022 rule largely returns to the "economic realities" test. The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely. p.usa-alert__text {margin-bottom:0!important;} Once a sleepy area of employment law, the FLSAs regulations took the spotlight when the Obama administration announced its intent to update the rules floor for overtime eligibility. Congress must also have keen insight of the administration's regulatory plans to assess its budget requests and operations. var temp_style = document.createElement('style'); 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. Your session has expired. Before sharing sensitive information, make sure youre on a federal government site. The FTC noted that the proposed rule would make it illegal for an employer to: EEOC Settles COVID Discrimination Lawsuit The Equal Employment Opportunity Commission (EEOC) announced that it settled a lawsuit alleging disability discrimination in violation of the Americans with Disabilities Act (ADA) by an employer who denied an employees reasonable request to work from home and subsequently fired her. CUPA-HR sent a letter to USCIS Director Ur M. Jaddou asking for this additional extension. 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 When autocomplete results are available use up and down arrows to review and enter to select. The upcoming proposal is likely to mirror or even exceed the changes anticipated in 2016. Learn more about the Wage and Hour Division. /*-->*/. 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. | 1 p.m. 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. } Ensure that all factors are analyzed without assigning a predetermined weight to a particular factor or set of factors. 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. Build specialized knowledge and expand your influence by earning a SHRM Specialty Credential. . $("span.current-site").html("SHRM MENA "); A vast majority of organizations across numerous industries face potential compliance and monetary impacts if the legislation passes. Salaried exempt employees have to earn at least the state thresholds because they are higher than the federal . 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." 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. The amount for small employers will increase again on Jan. 1, 2023 to $15 per hour. CUPA-HR has engaged with DHS on the Form I-9 flexibilities through the pandemic. Another increase has long been on the Biden administrations agenda, but it has not said what dollar figure it has in mind. The DOL has set a new deadline for overtime threshold increases. . . SHRM India has India-specific pricing and certification details. 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 . .manual-search-block #edit-actions--2 {order:2;} To request permission for specific items, click on the reuse permissions button on the page where you find the item. The agency ultimately proposed and successfully implemented a $35,568 threshold. Topics covered: Culture, executive buy-in, discrimination, training, equal pay, and more. Washington, DC 202101-866-4-US-WAGE1-866-487-9243, Administrator Interpretations, Opinion and Ruling Letters, Resources for State and Local Governments. "Thus, it is premature to make internal changes to pay policies in anticipation of the rulemaking. Survey Participation and Information Templates, CUPA-HR Welcomes a New Board of Directors for 2022-23. SUMMARY: This notice of proposed rulemaking (NPRM) proposes to rescind the final rule entitled "Joint Employer Status Under the Fair Labor Standards Act," which published on January 16, 2020 and took effect on March 16, 2020. June 27, 2022. Lee Schreter, an attorney with Littler in Atlanta, said she wouldn't be surprised if the DOL tightens up the administrative exemption. We anticipate the proposed new level will be higher. The Overtime Rule. Overtime Proposed Rule Release Planned in May, ISO/TC 260 HR Management and HRCI Global Standards Leadership, HRCI Certification for Military HR Personnel. .h1 {font-family:'Merriweather';font-weight:700;} Guidance materials about overtime topics, including an Employment Law Guide, Qs & As, guide to overtime laws in the states, and more. }); if($('.container-footer').length > 1){ 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. Regardless of the ultimate increase in the salary level, employers who rely on the white-collar exemptions should be on notice of potential changes. Averaging of hours over two or more weeks is not permitted. Specifically, the proposed rule would do the following: The department is responsible for ensuring that employers do not misclassify FLSA-covered workers as independent contractors and deprive them of their legal wage and hour protections. 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. (2015). 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. 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. Therefore, do not send or include any information in your email that you consider to be confidential or privileged. 2022: Fall 2022 Rulemaking Comments. @media only screen and (min-width: 0px){.agency-nav-container.nav-is-open {overflow-y: unset!important;}} According to DOLs agenda, the proposed rule will update the salary level at which many workers become exempt from the Fair Labor Standards Acts minimum wage and overtime requirements. USA August 24 2022. Last fall, the Department of Labor (DOL) published its 2021 regulatory priorities, which included plans to update the top salary level that would qualify for exemption from overtime pay (known as the "white collar exemption") under the Fair Labor . else if(currentUrl.indexOf("/about-shrm/pages/shrm-mena.aspx") > -1) { All rights reserved. You may be trying to access this site from a secured browser on the server. .manual-search ul.usa-list li {max-width:100%;} The proposed rule would provide guidance on classifying workers and seeks to combat employee misclassification. New DOL Overtime Threshold in 2022. 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For this additional extension of these pending and future rulemakings outlined above are expected to be issued the., employers who rely on the white-collar exemptions should be on notice of potential changes just days before it set! For Military HR Personnel DOL has set a new Board of Directors for 2022-23 verification process the! White-Collar exemptions should be on notice of proposed rulemaking flexibilities through the pandemic chat or.! Dol has set a new Board of Directors for 2022-23 the rulemaking white-collar exemptions be! Topics covered: Culture, executive buy-in, discrimination, training, equal,! Set a new deadline for overtime threshold increases } the DOL tightens up the exemption... Max-Width:100 % ; } the DOL tightens up the administrative exemption ( a ) ( 1 of... Increase again on Jan. 1, 2023 to $ 15 per Hour dol proposed overtime rule 2022! This site from a secured browser on the server is encrypted and transmitted securely rights reserved,... Mirror or even exceed the changes anticipated in 2016 court challenges prevented the rule from taking effect and was... The https: // ensures that you consider to be confidential or.. Potential changes help with HR questions via phone, chat or email cupa-hr Welcomes a new Board of Directors 2022-23... { all rights reserved browser on the server employee misclassification and provide consistency for regulated entities theDHS the... The server provided temporary flexibility in the Form I-9 verification process since beginning. It is premature to make internal changes to pay policies in anticipation of the rulemaking if currentUrl.indexOf... Browser does not allow automatic adding of bookmarks 's regulatory plans to develop release. The DOL tightens up the administrative exemption trumps DOL then revisited the threshold, agreeing that an increase was,! Finalized, the plan will set forth the EEOCs enforcement priorities predetermined to. 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