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. Revert to the longstanding interpretation of the economic reality factors. Federal government websites often end in .gov or .mil. We also anticipate some proposed changes to the duties tests. To find out more about our use of cookies and how to change your settings, please go to our Privacy Policy. Sign up for our newsletter and get the latest to your inbox. Regulatory agenda lists the status of anticipated regulatory actions. 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. DOL addressed the topic again in 2019 and enacted changes on January 1, 2020. In its recent spring regulatory agenda, the U.S. Department of Labor (DOL) announced its plans to issue a proposed overtime rule in October 2022. The United States Department of Labor ("DOL") is expected to propose a new salary threshold for various overtime exemptions under the Fair Labor Standards Act ("FLSA"). Read on for everything you need to know. An official website of the United States government. 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. An agency within the U.S. Department of Labor, 200 Constitution Ave NW FTC Proposed Rule Would Ban Noncompete Agreements The Federal Trade Commission (FTC) has proposed a rule that would ban employers from imposing noncompete agreements on their employees. An employee's workweek is a fixed and regularly recurring period of 168 hours seven consecutive 24-hour periods. DOL had previously planned to release the proposed rule in October 2022. Copyright 2023 HRCI. 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 Standards Act's (FLSA) minimum wage and overtime . 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. represent to a worker, under certain circumstances, that the worker is subject to a noncompete agreement. 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 two areas of anticipated revision are to the salary level and duties tests for an employee to be exempt from overtime pay. This website uses cookies to understand your use of our website and to give you a better experience. 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. Any information you send to Locke Lord LLP through this website is on a non-confidential and non-privileged basis. The DOL plans to make the changes effective in 2023. 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. CUPA-HR sent a letter to USCIS Director Ur M. Jaddou asking for this additional extension. Please enable scripts and reload this page. Members please Login here to view the article. Congress must also have keen insight of the administration's regulatory plans to assess its budget requests and operations. Though it marked the first increase to the FLSA's overtime threshold in over a . 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 new rule goes into effect January 1, 2020. 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. Agriculture Acquisition Regulation: Internal Policy and Procedural Updates and Technical Changes. The DOL has considered modifying the regulations in this regard a few times in recent yearsbut hasended up leaving the current tests alone. June 27, 2022. In . Guidance materials about overtime topics, including an Employment Law Guide, Qs & As, guide to overtime laws in the states, and more. .manual-search ul.usa-list li {max-width:100%;} The following policy statements* will be included in your export: *Use of this material is governed by XpertHRs Terms and Conditions. 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. The department believes the new rule would preserve essential worker rights and provide consistency for regulated entities. .cd-main-content p, blockquote {margin-bottom:1em;} Please confirm that you want to proceed with deleting bookmark. You may be trying to access this site from a secured browser on the server. From March 2020 through June 2020, employees were required to work remotely four days per week due to the COVID-19 pandemic. Comments on the draft plan must be submitted by February 9, 2023. Currently, the Department of Labor requires that employees covered by the Fair Labor Standards Act must receive overtime pay for working more than 40 hours in a workweek, unless the employee is covered by certain exemptions. Partner Russell Bruch spoke to HR Today about a proposed US Department of Labor overtime rule expected to lead to increased eligibility for overtime pay. Please purchase a SHRM membership before saving bookmarks. Pay transparency, employee privacy, compassionate leadership and political biases are among this years hot debates, according to labor experts. var currentLocation = getCookie("SHRM_Core_CurrentUser_LocationID");
The agency already has missed its target for the overtime rule twice. Topics covered: Talent acquisition, diversity and inclusivity in hiring, employer branding, performance evaluations and more. "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 . .manual-search-block #edit-actions--2 {order:2;} How much of a salary increase the DOL will propose and if it will seek to index the threshold to some cost of living measure remains unknown at this time. Members can get help with HR questions via phone, chat or email. But they delayed it and are now targeting October 2022 as the release date. proposed changes. The agency ultimately proposed and successfully implemented a $35,568 threshold. Your session has expired. A vast majority of organizations across numerous industries face potential compliance and monetary impacts if the legislation passes. 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. XpertHR is part of the LexisNexis Risk Solutions Group portfolio of brands. 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. .h1 {font-family:'Merriweather';font-weight:700;} Many in the business community believe that current hiring and retention issues, supply chain disruptions, and inflationary pressures are all reasons why the DOL should not proceed with a rulemaking.". The DOL initially planned to issue this new proposal in April 2022. Shortly thereafter, President Donald Trump took office and DOL abandoned its defense of the rule. Effective Jan. 1, 2020, the federal minimum salary threshold increased to $684 a week. Our goal is to ensure that all New York workers are being paid the proper wages, do not have their right to a meal period or day of rest violated, and to uphold New York State Labor Laws. March 21, 2022. 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;}';
Topics covered: Culture, executive buy-in, discrimination, training, equal pay, and more. Joint-employer status under the National Labor Relations Act. */. For questions or additional information, contact Reichenberg atneilreichenberg@yahoo.com. [CDATA[/* >