The FTC is accepting public comments on the proposed rule until March 10, 2023, and they can be submitted online. An official website of the United States government. 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. 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. The agency plans to release a new overtime threshold in May. 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. $(document).ready(function () { 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. p.usa-alert__text {margin-bottom:0!important;} The upcoming proposal is likely to mirror or even exceed the changes anticipated in 2016. A vast majority of organizations across numerous industries face potential compliance and monetary impacts if the legislation passes. Oct 11 2022 10:37 AM EDT Updated Tue, . 96% of members agree: "SHRMs information is very useful to me". 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. There is no limit in the Act on the number of hours employees aged . The materials and information included in the XpertHR service are provided for reference purposes only. Learn how SHRM Certification can accelerate your career growth by earning a SHRM-CP or SHRM-SCP. The DOL promised to consider this feedback and may make changes to its draft rule before publishing a final version. 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. Ensure that all factors are analyzed without assigning a predetermined weight to a particular factor or set of factors. On June 15, 2012, theDHS established the DACA policy. Please enable scripts and reload this page. 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. For Long Island and Westchester County . . Existing noncompete agreements would need to be rescinded and workers informed that they are no longer in effect. 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. Consulting and insurance brokerage services to be provided by Gallagher Benefit Services, Inc. and/or its affiliate Gallagher Benefit Services (Canada) Group Inc. Gallagher Benefit Services, Inc. is a licensed insurance agency that does business in California as "Gallagher Benefit Services of California Insurance Services" and in Massachusetts as "Gallagher Benefit Insurance Services." An agency within the U.S. Department of Labor, 200 Constitution Ave NW . Members please Login here to view the article. } 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. Specifically, the proposed rule would do the following: The department is responsible for ensuring that employers do not misclassify FLSA-covered workers as independent contractors and deprive them of their legal wage and hour protections. .agency-blurb-container .agency_blurb.background--light { padding: 0; } .agency-blurb-container .agency_blurb.background--light { padding: 0; } } While independent contractors have an important role in our economy, we have seen in many cases that employers misclassify their employees as independent contractors, particularly among our nations most vulnerable workers, said Secretary of Labor Marty Walsh. Members can get help with HR questions via phone, chat or email. Tuesday, February 28, 2023. 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. We help organizations develop a comprehensive understanding of state laws and regulations to inform investment across people strategies and operations. Read on for everything you need to know. 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. The federal overtime provisions are contained in the Fair Labor Standards Act (FLSA). In fact, Walsh indicated in the June hearing that the DOL thinks the rule should be reviewedand possibly updatedregularly. Track your regular work hours, break time, and overtime hours. If such an increase is proposed, it will impact millions of workers and almost certainly meet resistance in federal courts from private employers and business groups. 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. As an update, the April deadline has passed, but it is now anticipated that the DOL intends to propose new FLSA overtime rules this October. #block-googletagmanagerheader .field { padding-bottom:0 !important; } #views-exposed-form-manual-cloud-search-manual-cloud-search-results .form-actions{display:block;flex:1;} #tfa-entry-form .form-actions {justify-content:flex-start;} #node-agency-pages-layout-builder-form .form-actions {display:block;} #tfa-entry-form input {height:55px;} 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 June 29, 2022. The courts blocked this proposal shortly before it was scheduled for implementation. The district court further sent the DACA policy to the DHS for further consideration. 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. Virtual & Washington, DC | February 26-28, 2023. More than 54,000 people submitted comments on the rule. Monday, November 7, 2022. 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. 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. For example, the lack of transparency in knowing what to expect makes it more difficult to hold the administrative state accountable for its plans. 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). [Mr. Fendly's statement may be found in the appendix.] .usa-footer .grid-container {padding-left: 30px!important;} 200 Constitution AveNW Please log in as a SHRM member. CUPA-HR filedcommentsin opposition to the Trump administrations regulations on the issue andin responseto the Biden administrations RFI. 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 U.S. Department of Labor in September 2019 updated the federal overtime rules regarding executive, administrative, and professional workers. keystyle mmc corp login; thomson reuters drafting assistant user guide. Once a sleepy area of employment law, the FLSAs regulations took the spotlight when the Obama administration announced its intent to update the rules floor for overtime eligibility. $('.container-footer').first().hide(); By Jill Desjean, NASFAA Policy & Federal Relations Staff. Salaried exempt employees have to earn at least the state thresholds because they are higher than the federal . Ruling on a narrow, but significant question, the US Supreme Court affirmed that the white . 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. 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.. 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. The Internal Revenue Service has increased by three cents per mile, the optional standard mileage rates used to calculate the deductible costs of operating an automobile for business purposes. 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].. To request permission for specific items, click on the reuse permissions button on the page where you find the item. On July 16, 2021, the U.S. District Court for the Southern District of Texas vacated the June 2012 memorandum that created the DACA policy and permanently blocked the DHS from administering the DACA program and from reimplementing DACA without compliance with the Administrative Procedure Act. 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. However, court challenges prevented the rule from taking effect and it was permanentlyenjoinedin September 2017. 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 "); While details of the 2022 proposed changes are forthcoming, organizations should prepare now to address pending challenges and associated opportunities. The Notice of Proposed Rulemaking was originally slated for April 2022 but then delayed to October of that year. 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. Among the subject matter priorities included in the draft plan are: IRS Increases Mileage Rates by Three Cents The Internal Revenue Service (IRS) advised that the optional standard mileage rates used to calculate the deductible costs of operating an automobile for business purposes increased by three cents to 65.5 cents per mile effective on January 1, 2023. The proposed changes will impact Employers and employees. The proposal will likely amend the Trump administration's final . The following policy statements* will be included in your export: *Use of this material is governed by XpertHRs Terms and Conditions. The California standards require that more than 50 percent of the employee's time be spent solely on performing exempt duties in orderto be classified as exempt, he noted. Democrats want OT salary threshold upped to $82,732 by 2026. Topics covered: Employee learning, training, onboarding, mentoring, career development and more. . The Department of Labor remains committed to addressing the issue of misclassification.. Please note that all such forms and policies should be reviewed by your legal counsel for compliance with applicable law, and should be modified to suit your organizations culture, industry, and practices. CUPA-HR has engaged with DHS on the Form I-9 flexibilities through the pandemic. Find the latest news and members-only resources that can help employers navigate in an uncertain economy. #block-googletagmanagerfooter .field { padding-bottom:0 !important; } Many of these pending and future rulemakings outlined above are expected to face scrutiny via congressional oversight in the newly Republican-controlled House of Representatives. 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. 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. The DOL initially planned to issue this new proposal in April 2022. 2022. However, Schreter said, "I don't think they're going to give up on that.". The .gov means its official. 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. if(currentUrl.indexOf("/about-shrm/pages/shrm-china.aspx") > -1) { 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 federal rules governing overtime pay were established by the Fair Labor Standards Act (FLSA), which also described which workers are exempt from . Align the departments approach with courts FLSA interpretation and the economic reality test. Trumps DOL then revisited the threshold, agreeing that an increase was needed, but one far below the rate Democrats had planned. 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. /*-->*/. "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 proposed rule is intended to replace the 2021 independent contractor regulation. A new overtime rule from the U.S. Department of Labor is likely to change some of the existing rule's white-collar exemptions. The .gov means its official. 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. We also anticipate some proposed changes to the duties tests. Please purchase a SHRM membership before saving bookmarks. Colorado Maine New York The salary threshold for the overtime exemption varies based on geographical location. The law covers virtually every employer . Comments on the proposed rule are due by March 10, 2023. These changes moved the threshold to $684 per week . 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. Copyright 2023 LexisNexis Risk Solutions Group. 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 DOL's new overtime rule is expected to raise the minimum salary for most overtime-exempt employees and . @media only screen and (min-width: 0px){.agency-nav-container.nav-is-open {overflow-y: unset!important;}} Please log in as a SHRM member before saving bookmarks. .dol-alert-status-error .alert-status-container {display:inline;font-size:1.4em;color:#e31c3d;} Prevented the rule should be reviewedand possibly updatedregularly and overtime hours the rule from taking effect and was. 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