A sign stands in front of the U.S. Department of Labor. On June 7, ICE sent its proposal to the Office of Information and Regulatory Affairs (OIRA). DOL had previously planned to release the proposed rule in October 2022. 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 US Department of Labor (DOL) now intends to propose new Fair Labor Standards Act (FLSA) overtime rules this October, six months later than originally planned. 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 . An official website of the United States government. 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. 2022: Fall 2022 Rulemaking Comments. Please log in as a SHRM member. "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 amount for small employers will increase again on Jan. 1, 2023 to $15 per hour. Existing noncompete agreements would need to be rescinded and workers informed that they are no longer in effect. 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.". Align the departments approach with courts FLSA interpretation and the economic reality test. Shortly thereafter, President Donald Trump took office and DOL abandoned its defense of the rule. Monday, November 7, 2022. The deadline to announce such changes was initially set for April 2022 but has since seen several delays. Neil Reichenberg is the former executive director of the International Public Management Association for Human Resources. $('.container-footer').first().hide(); The exempt duties generally fall within those categories, and each category has different criteria: The salary level was last adjusted effective January 1, 2020 when it was raised to the $684 per week level (equivalent to $35,568 per year for a full-year worker). 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. Topics covered: HR management, compensation & benefits, development, HR tech, recruiting and much more. Restore the multifactor, totality-of-the-circumstances analysis to determine whether a worker is an employee or an independent contractor under the FLSA. Modify the duties tests so more employees are classified as non-exempt, and. This spring, the U.S. Department of Labor (DOL) is expected to announce recommended changes related to employee salary for overtime rules as part of the Fair Labor Standards Act (FLSA). Review the laws and regulations that govern overtime in the United States. Learn more by reading fact sheets that cover a variety of overtime topics. The agency ultimately proposed and, Another increase has long been on the Biden administrations agenda, but it has not said what dollar figure it has in mind. } High on the DOL's list of priorities with the proposed overtime rule will be adjusting the salary level, possibly increasing it from its current annualized rate of $35,568, noted Robert Boonin, an attorney with Dykema in Ann Arbor, Mich. "There's certainly pressure to bring the amount to as high as the $47,476 annualized amount that was enjoined by a court in 2016, but many advocates are seeking even higher levels, from $62,000 to over $80,000 per year," he said. Any information you send to Locke Lord LLP through this website is on a non-confidential and non-privileged basis. As we previously reported in our New Year's Update for 2022, the US Department of Labor (DOL's) regulatory agenda included proposed rulemaking on the Fair Labor Standards Act (FLSA) overtime rules by April 2022. Additionally, CUPA-HR submitted commentsin response to the RPI based on a recent survey detailing members experiences with the Form I-9 verification process flexibilities. The FTC is accepting public comments on the proposed rule until March 10, 2023, and they can be submitted online. The proposed overtime rule will be published in May, according to the agenda. Revert to the longstanding interpretation of the economic reality factors. #block-googletagmanagerheader .field { padding-bottom:0 !important; } ET, Presented by studioID and Express Employment Professionals, The comprehensive list of HR trends to watch in 2023, Faith groups ask SCOTUS to overturn religious accommodation precedent, Biden to appoint Julie Su as Labor Secretary, Interpreting the FMLA, one case at a time, Quiet Black History Month a warning sign, DEI pros say, Everything employers must know on employee development, Boost Employee Engagement with Small Moments of Joy at Work, Winning the War for Talent: Why On-Demand Pay Is Becoming the Must-Have Benefit to Get and Keep the Best Employees, Diversity exec Saraswati resigns amid claims she lied about her race, People arent getting the COVID booster. The department believes the new rule would preserve essential worker rights and provide consistency for regulated entities. OIRA is the White House office responsible for reviewing regulations and proposed regulations before they are publicly released and generally takes 30-90 days for this review, indicating ICE is on target to issue their proposal in July. FLSA requirements relating to minimum wage, overtime, and . @media (max-width: 992px){.usa-js-mobile-nav--active, .usa-mobile_nav-active {overflow: auto!important;}} Topics covered: National employment laws, harassment, accommodations, training, and more. By: Jenny R. Yang February 28, 2023. DOL/Employee Benefits Security Administration (EBSA) Topics covered: Culture, executive buy-in, discrimination, training, equal pay, and more. Therefore, do not send or include any information in your email that you consider to be confidential or privileged. Now is a great time to put your "HR house" in order when it comes to accurate exempt/non-exempt classifications and earning thresholds. On October 11, 2022, the U.S. Department of Labor (DOL) unveiled a new proposed rule that could make it more difficult for workers to be classified as independent contractors under the Fair Labor Standards Act (FLSA). ET, Webinar The DOL's new overtime rule is expected to raise the minimum salary for most overtime-exempt employees and possibly update the duties tests as well. $(document).ready(function () { 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 . 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. Get the free daily newsletter read by industry experts. A Davis-Bacon Act final rule is now scheduled for December. The move would have entitled millions more employees to overtime pay, economists estimated, but it was halted when a federal judge. 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. Please enable scripts and reload this page. 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. 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. Members may download one copy of our sample forms and templates for your personal use within your organization. DOL addressed the topic again in 2019 and enacted changes on January 1, 2020. 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. Start Preamble AGENCY: Wage and Hour Division, Department of Labor. Before sharing sensitive information, make sure youre on a federal government site. "This type of change would also disqualify many currently exempt employees from their current exempt status," he said. While it is unclear whether the December NPRM will include the blacklisting language again, the abstract of the re-proposal states that the new proposed rule would be responsive to the comments received on our February 2022 proposal.. Regulatory agenda lists the status of anticipated regulatory actions. The division encourages all stakeholders to participate in the regulatory process. The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely. The upcoming proposal is likely to mirror or even exceed the changes anticipated in 2016. /*-->*/. Washington, DC 202101-866-4-US-WAGE1-866-487-9243, Administrator Interpretations, Opinion and Ruling Letters, Resources for State and Local Governments. Survey Participation and Information Templates, CUPA-HR Welcomes a New Board of Directors for 2022-23. An official website of the United States government. Access a collection of interactive online tools and presentations that address overtime pay requirements. The new proposal, which is included in the Departments Statement of Regulatory Priorities, will take into consideration the feedback it received in response to aRequest for Information (RFI) on data and methods for determining prevailing wage levels to ensure fair wages and strengthen protections for foreign and U.S. workers.. $("span.current-site").html("SHRM MENA "); The proposed rule would provide guidance on classifying workers and seeks to combat employee misclassification. All rights reserved. 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. }. In July 2022, the National Labor Relations Board (NLRB) is planning to release an NPRM to potentially amend the standard determining when two employers may be considered joint employers under the National Labor Relations Act. The new 2022 rule largely returns to the "economic realities" test. 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. The courts blocked this proposal shortly before it was scheduled for implementation. The new rule goes into effect January 1, 2020. 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. .table thead th {background-color:#f1f1f1;color:#222;} 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. For Long Island and Westchester County . 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." 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