}); if($('.container-footer').length > 1){ Restore the multifactor, totality-of-the-circumstances analysis to determine whether a worker is an employee or an independent contractor under the 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. The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely. 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. Topics covered: National employment laws, harassment, accommodations, training, and more. These factors include the investment, control and opportunity for profit or loss factors. Addressing selected emerging and developing issues such as qualification standards that discriminate against individuals with disabilities, protecting individuals affected by pregnancy, childbirth and related medical conditions under the Pregnancy Discrimination Act, employment discrimination associated with COVID-19 and other threats to public health, and technology related discrimination. SHRM India has India-specific pricing and certification details. 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. The Act applies on a workweek basis. The Notice of Proposed Rulemaking was originally slated for April 2022 but then delayed to October of that year. Please purchase a SHRM membership before saving bookmarks. 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. NAM Vice President of Infrastructure, Innovation and Human Resources Policy Robyn Boerstling joined us to explain what's happening. The materials and information included in the XpertHR service are provided for reference purposes only. The Biden administration has signaled its desire to return to the approach attempted in 2016. It remains to be seen whether the DOL will follow its own timeline, however. You have successfully saved this page as a bookmark. 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. We also anticipate some proposed changes to the duties tests. 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 would provide guidance on classifying workers and seeks to combat employee misclassification. Trumps DOL then revisited the threshold, agreeing that an increase was needed, but one far below the rate Democrats had planned. The district court did this partly based on its conclusion that the June 2012 memorandum announced a legislative rule that required notice-and-comment rulemaking. Get the free daily newsletter read by industry experts. The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely. 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. Now, the DOL is considering a new overtime rule and the proposal is expected to hit this coming fall. 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. ("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 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. With so many agencies experiencing staffing shortages and difficulties hiring new . 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 U.S. Department of Labor in September 2019 updated the federal overtime rules regarding executive, administrative, and professional workers. Employees paid below that figure must receive time-and-one-half their regular rate of pay when they work more than 40 hours in a workweek. XpertHR is part of the LexisNexis Risk Solutions Group portfolio of brands. 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. Misclassification denies basic worker protections such as minimum wage and overtime pay and affects a wide range of workers in the home care, janitorial services, trucking, delivery, construction, personal services, and hospitality and restaurant industries, among others. .table thead th {background-color:#f1f1f1;color:#222;} For Long Island and Westchester County . DOL/Employee Benefits Security Administration (EBSA) Ensure that all factors are analyzed without assigning a predetermined weight to a particular factor or set of factors. The .gov means its official. 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. Please log in as a SHRM member before saving bookmarks. Track your regular work hours, break time, and overtime hours. Generally, the rule applies to any salaried worker who does not supervise other workers and makes less than $684 a week . Agriculture Acquisition Regulation: Internal Policy and Procedural Updates and Technical Changes. The federal overtime provisions are contained in the Fair Labor Standards Act (FLSA). 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 November 2019, before it could take effect, a federal judge in Texas enjoined the new overtime rule on a nationwide basis, declaring it "unlawful.". In closing AMB applauds the substantial effort of the Department of Labor in overhauling these regulations. 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;}'; Minimum Wages Are On the Rise in Several States. The DOL plans to make the changes effective in 2023. But they delayed it and are now targeting October 2022 as the release date. The site is secure. CUPA-HR filedcommentsin opposition to the Trump administrations regulations on the issue andin responseto the Biden administrations RFI. 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. Notably absent from the spring regulatory agenda is an entry for an FLSA independent-contractor rulemaking, given that a recent blog post on the DOL's website stated that such a proposal is in the works, Plunkett said. Additionally, not knowing regulatory priorities can have an impact on budget and resource planning for employers, especially during a time of high inflation and anticipated economic recission. The US Department of Labor (DOL) is planning for a busy springtime. $("span.current-site").html("SHRM MENA "); Joint-employer status under the National Labor Relations Act. Affiliate of the Society for Human Resource Management, Home Blog 2022 DOLS PROPOSED OVERTIME RULE. Before publication of todays proposed rulemaking, the departments Wage and Hour Division considered feedback shared by stakeholders in forums during the summer of 2022 and will now solicit comments on the proposed rule from interested parties. Existing noncompete agreements would need to be rescinded and workers informed that they are no longer in effect. ACTION: Notice of proposed rulemaking; request for comments. /*-->*/. A new overtime rule from the U.S. Department of Labor is likely to change some of the existing rule's white-collar exemptions. 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. We anticipate the proposed new level will be higher. Most recently, DHS announced an additional extension of the Form I-9 flexibility guidance through October 31, 2022. While that guidance is onlytemporary, DHS issued aRequest for Public Input (RPI) on October 26, 2021, to determine whether those flexibilities should be kept in place permanently. 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. (2015). The amount for small employers will increase again on Jan. 1, 2023 to $15 per hour. 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. A final rule on improving tracking of workplace injuries and illnesses is slated for December, as well. -1) { Feel free to contact us if you have questions about this matter. .manual-search ul.usa-list li {max-width:100%;} The Overtime Rule. .h1 {font-family:'Merriweather';font-weight:700;} The agency took meetings and held online listening sessions with stakeholders last year. It is not intended to provide specific legal, tax or other professional advice. The DOL promised to consider this feedback and may make changes to its draft rule before publishing a final version. Conversely, there is nothing stopping the DOL from issuing new rules before its target dates, either. In December 2022, the Department of Agriculture (USDA) plans to re-propose an NPRM that was previously issued in February 2022 and included controversial provisions that would require federal contractors on projects procured by the agency to certify their compliance with dozens of federal and state labor laws and executive orders. Regulatory agenda lists the status of anticipated regulatory actions. When the economy is unstable, employers are faced with difficult decisions around staffing, pay and benefits. While the employer allowed other employees in her position to work from home, it denied her request and shortly thereafter terminated her employment. "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 . 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. 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.". Misclassification deprives workers of their federal labor protections, including their right to be paid their full, legally earned wages. The law covers virtually every employer . DOL's Wage and Hour Division plans to develop and release a notice of proposed rulemaking . . Washington, DC 202101-866-4-US-WAGE1-866-487-9243, Administrator Interpretations, Opinion and Ruling Letters, Resources for State and Local Governments. 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 . For questions or additional information, contact Reichenberg [email protected]. Before sharing sensitive information, make sure youre on a federal government site. Revert to the longstanding interpretation of the economic reality factors. President Biden touted increasing the salary threshold throughout his presidential campaign. To request permission for specific items, click on the reuse permissions button on the page where you find the item. Do you need help with your HR questions? The two areas of anticipated revision are to the salary level and duties tests for an employee to be exempt from overtime pay. 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 . The Federal Trade Commission has issued a proposed rule that would ban employers from imposing noncompete agreements on their workers. The key labor and employment regulatory actions included in the fall agenda are listed below. Please log in as a SHRM member. The new rule goes into effect January 1, 2020. 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. 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. Employees in her position to work from Home, it denied her request shortly. 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