According to DOL, the 40th percentile equated to $921 per week in 2013 and will be about $970 when the rule is . For Long Island and Westchester County . .manual-search ul.usa-list li {max-width:100%;} .paragraph--type--html-table .ts-cell-content {max-width: 100%;} In September 2019, the Trump DOL issued a new overtime rule, which took effect on January 1, 2020, raising the weekly minimum salary for EAP exemptions from $455 per week ($23,660 per year . ACTION: Notice of proposed rulemaking; request for comments. The U.S. Department of Labor said it will review Fair Labor Standards Act regs that implement white-collar minimum wage and overtime exemptions and propose an update in April 2022. Jan 23, 2023 | Neil Reichenberg, HRCI Contributing Writer. Most recently, DHS announced an additional extension of the Form I-9 flexibility guidance through October 31, 2022. NAM Vice President of Infrastructure, Innovation and Human Resources Policy Robyn Boerstling joined us to explain what's happening. 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 filed anextension request with the department asking for an additional 90 days to evaluate the NPRMs impact on [members] research missions and collect the information needed in order to provide thoughtful and accurate input to the USDA, as well as official comments that were pulled from 2012 comments CUPA-HR submitted with the Society for Human Resource Management (SHRM). Please press Ctrl/Command + D to add a bookmark manually. .cd-main-content p, blockquote {margin-bottom:1em;} Learn how SHRM Certification can accelerate your career growth by earning a SHRM-CP or SHRM-SCP. .paragraph--type--html-table .ts-cell-content {max-width: 100%;} 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. Regardless of the ultimate increase in the salary level, employers who rely on the white-collar exemptions should be on notice of potential changes. Thank you again for providing me the opportunity to testify on the Department of Labor final overtime rule, and I would be happy to answer any questions that any of the members may have. . 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. Affiliate of the Society for Human Resource Management, Home Blog 2022 DOLS PROPOSED OVERTIME RULE. As the current minimum salary amount is $684/week, it is expected for DOL . 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. The upcoming proposal is likely to mirror or even exceed the changes anticipated in 2016. 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. Another increase has long been on the Biden administrations agenda, but it has not said what dollar figure it has in mind. Now is a great time to put your "HR house" in order when it comes to accurate exempt/non-exempt classifications and earning thresholds. DOL had previously planned to release the proposed rule in October 2022. 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. 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). 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. 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 $921/week threshold would make more than 4.2 million workers ineligible for a white-collar exemption and eligible for overtime pay. OSHA aims to complete a final rule by September. }); if($('.container-footer').length > 1){ DHS has provided temporary flexibility in the Form I-9 verification process since the beginning of the COVID-19 pandemic. represent to a worker, under certain circumstances, that the worker is subject to a noncompete agreement. 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. Wage and Hour Division Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales and Computer Employees, According to the Regulatory Agenda, the Department of Labor (DOL)s Wage and Hour Division (WHD) is now planning to release a Notice of Proposed Rulemaking (NPRM) to address changes to the Fair Labor Standards Act (FLSA)s overtime pay requirements in October 2022. 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. With so many agencies experiencing staffing shortages and difficulties hiring new . In the Biden administration's fall 2021 regulatory agenda, the Department of Labor (DOL)'s Wage and Hour Division (WHD) announced that it planned to release in April 2022 a Notice of Proposed Rulemaking (NPRM) changing criteria for the "executive, administrative and professional" exemptions from the overtime pay requirements under the Fair Labor Standards Act (FLSA). proposed changes. 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. Please log in as a SHRM member before saving bookmarks. 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. 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. Learn more by reading fact sheets that cover a variety of overtime topics. The agency ultimately proposed and successfully implemented a $35,568 threshold. The Division of Labor Standards protects all workers, including those that are undocumented or paid off the books, and ensures employers are following Labor Laws. These changes moved the threshold to $684 per week . Once proposed, stakeholders will have an opportunity to comment before the agency finalizes its rule. While the specifics remain unknown, some labor law experts speculate that it will: Increase the weekly threshold from $684 to $900--$1,000. } .usa-footer .grid-container {padding-left: 30px!important;} 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 Members may download one copy of our sample forms and templates for your personal use within your organization. We anticipate the proposed new level will be higher. "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 . 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. 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].. The FLSA does not require overtime pay for work on Saturdays, Sundays, holidays, or regular days of rest, unless overtime is worked on such days. 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 This material was created to provide accurate and reliable information on the subjects covered but should not be regarded as a complete analysis of these subjects. An HR Advisor is here to help by email, live chat, or phone. The salary basis threshold has been raised numerous times since Congress enacted the FLSA in 1938. Track your regular work hours, break time, and overtime hours. The Department of Labor (DOL) The overtime threshold is a salary level used to determine which employees are eligible to receive overtime pay when they work over 40 hours in a single workweek. 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. 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 . The proposal is expected to be issued in the near future. .agency-blurb-container .agency_blurb.background--light { padding: 0; } In particular, the House Education and Labor Committee (expected to be renamed the "House Education and Workforce Committee" by the new Republican majority) is expected to pursue aggressive oversight of the DOL and the NLRB. To request permission for specific items, click on the reuse permissions button on the page where you find the item. The salary basis threshold was increased in 2019 from $23,660/year to $35,568/year. An employee's workweek is a fixed and regularly recurring period of 168 hours seven consecutive 24-hour periods. 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. Preventing and remedying systemic harassment including sexual harassment and harassment based on race, disability, age, national origin, religion, color, and sex (including pregnancy, sexual orientation, and gender identity). The DOL plans to make the changes effective in 2023. Please purchase a SHRM membership before saving bookmarks. Monday, November 7, 2022. The proposed overtime rule will be published in May, according to the agenda, which lists the status of anticipated regulatory actions. According to the FTC, this new rule could increase wages by nearly $300 billion annually and expand career opportunities for about 30 million Americans. The .gov means its official. } else if(currentUrl.indexOf("/about-shrm/pages/shrm-mena.aspx") > -1) { 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. Many expect the DOL to increase the threshold from its current minimum salary amount of $684/weekpotentially impacting millions of employees across the United States. A sign stands in front of the U.S. Department of Labor. That final rule took effect on January 1, 2020. These factors include the investment, control and opportunity for profit or loss factors. On Jan. 4, the Biden administration released its long-awaitedFall 2022 Unified Agenda of Regulatory and Deregulatory Actions. Democrats want OT salary threshold upped to $82,732 by 2026. 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 following roles are exempt from overtime: The salary test is where we expect to see changes. 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. 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. Please log in as a SHRM member. .usa-footer .container {max-width:1440px!important;} 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. The agenda says they will have proposed rule revisions and . 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. Gallagher supports organizations with comprehensive solutions to include exemption review, compensation and classification structures, enhanced management of ongoing joint-employer challenges and implementation strategies. 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