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. 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. 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). ("WHD") plans to develop and release in April 2022 a Notice of Proposed Rulemaking ("NPRM") on "the exemption of bona fide executive, administrative, and professional . The policy directed U.S. As an FLSA refresher, to meet the criteria for exemption from overtime, an employee typically must pass the standard of two "tests": The first test centers on the employee's responsibilities in the organization. CUPA-HR filedcommentsin opposition to the Trump administrations regulations on the issue andin responseto the Biden administrations RFI. As the fight in Congress and the court of public opinion continues with respect to the proposed legislation to raise the federal minimum wage supported by President Obama, the White House has announced broad proposed reforms to the Department of Labor (DOL) regulations defining the exemptions from overtime under the Fair Labor Standards Act (FLSA). 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 . 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. Typically, these semi-annual agendas are issued in the spring and fall and outline federal agency goals for the months ahead. The agency plans to release a new overtime threshold in May. The following policy statements* will be included in your export: *Use of this material is governed by XpertHRs Terms and Conditions. Before sharing sensitive information, make sure youre on a federal government site. div#block-eoguidanceviewheader .dol-alerts p {padding: 0;margin: 0;} New DOL Overtime Threshold in 2022. 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. Department of Labor Intends to Extend Overtime Pay Requirements to More Workers. 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. Topics covered: National employment laws, harassment, accommodations, training, and more. 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. Topics covered: Talent acquisition, diversity and inclusivity in hiring, employer branding, performance evaluations and more. .agency-blurb-container .agency_blurb.background--light { padding: 0; } The DOL, HHS, and Treasury just released an FAQ that provides guidance on if Drug Manufacturers' Coupons disqualify Health Savings Accounts. 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. In closing AMB applauds the substantial effort of the Department of Labor in overhauling these regulations. In May 2016, the Obama administrations DOL issued afinal ruleincreasing the salary threshold from $23,660 to $47,476 per year and imposed automatic updates to the threshold every three years. ACTION: Notice of proposed rulemaking; request for comments. To find out more about our use of cookies and how to change your settings, please go to our Privacy Policy. 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. On June 21, the Biden administration released the anticipated Spring 2022 Unified Agenda of Regulatory and Deregulatory Actions (Regulatory Agenda), providing the public with a detailed glimpse into the regulatory and deregulatory activities under development across approximately 67 federal departments, agencies and commissions. Align the departments approach with courts FLSA interpretation and the economic reality test. 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 . 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. The proposed rule would provide guidance on classifying workers and seeks to combat employee misclassification. Access a collection of interactive online tools and presentations that address overtime pay requirements. Use of the service is subject to our terms and conditions. In the Fall 2021 Regulatory Agenda, the DOL's Wage and Hour Division (WHD) announced plans to issue an NPRM as early as April 2022 to address overtime pay requirements for certain white-collar employees.1 Since 1938, the Fair Labor Standards Act (FLSA or Act) has established the minimum wage and overtime pay Though it marked the first increase to the FLSA's overtime threshold in over a . . The May goal represents a second delay. -1) { The case hinged on the "salary basis" test for the white . U.S. Department of Labor (DOL)/Wage and Hour Division (WHD), DOL/Office of Labor-Management Standards (OLMS), DOL/Employee Benefits Security Administration (EBSA), Occupational Safety and Health Administration (OSHA). Whitepaper & Research Library India & APAC, Advanced Certificate in Human Resource Management (ACHRM), Advanced Human Resource Management Program (AHRMP), Fall 2022 Unified Agenda of Regulatory and Deregulatory Actions, Proposed Overtime Rule Scheduled to Be Published in May, 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. According to DOL, the 40th percentile equated to $921 per week in 2013 and will be about $970 when the rule is . There is no limit in the Act on the number of hours employees aged 16 and older may work in any workweek. Another increase has long been on the Biden administrations agenda, but it has not said what dollar figure it has in mind. Protecting vulnerable workers and persons from underserved communities from employment discrimination. President Biden touted increasing the salary threshold throughout his presidential campaign. Please press Ctrl/Command + D to add a bookmark manually. Survey Participation and Information Templates, CUPA-HR Welcomes a New Board of Directors for 2022-23. Once proposed, stakeholders will have an opportunity to comment before the agency finalizes its rule. var temp_style = document.createElement('style'); Trumps DOL then revisited the threshold, agreeing that an increase was needed, but one far below the rate Democrats had planned. Federal government websites often end in .gov or .mil. Get the Quickstart Guide for Employers. . 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. NAM Vice President of Infrastructure, Innovation and Human Resources Policy Robyn Boerstling joined us to explain what's happening. The EEOC reported that in resolving the lawsuit, the employer agreed to a two-year consent decree; will pay the former employee $47,500 in monetary damages; train its employees on the ADA; make changes to its employment policies; and allow the EEOC to monitor how it handles future requests for accommodation. 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 that number, upping the threshold to $47,476 threshold ($913 per week). 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. Your session has expired. 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 .paragraph--type--html-table .ts-cell-content {max-width: 100%;} Overtime Proposed Rule Release Planned in May, ISO/TC 260 HR Management and HRCI Global Standards Leadership, HRCI Certification for Military HR Personnel. 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). The agenda says they will have proposed rule revisions and . The Biden Administration's fall 2021 regulatory agenda projects that the Department of Labor (DOL) will revisit before April 2022 the salary level at which an employee could be exempted from federal overtime and minimum wage requirements, as well as address other aspects of the overtime regulatory regime. Those changes, however, were less significant than the 2016 efforts to modify FLSA provisions, which were halted later due to a preliminary injunction. EEOC Seeks Comments on Strategic Enforcement Plan The Equal Employment Opportunity Commission (EEOC) has published for public comment, a draft Strategic Enforcement Plan. 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. @media only screen and (min-width: 0px){.agency-nav-container.nav-is-open {overflow-y: unset!important;}} 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. When autocomplete results are available use up and down arrows to review and enter to select. Any information you send to Locke Lord LLP through this website is on a non-confidential and non-privileged basis. The proposed rule would provide guidance on classifying workers and seeks to combat employee misclassification. Now, the DOL is considering a new overtime rule and the proposal is expected to hit this coming fall. There is no limit in the Act on the number of hours employees aged . All rights reserved. var currentLocation = getCookie("SHRM_Core_CurrentUser_LocationID"); 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. 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. Your session has expired. Please log in as a SHRM member. p.usa-alert__text {margin-bottom:0!important;} 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. .manual-search ul.usa-list li {max-width:100%;} 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. 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. DOL had previously planned to release the proposed rule in October 2022. Employers should carefully review all pay practices, exemptions from overtime, and potential FLSA liability in light of these potential changes. 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