"Snowy Labor Department Sign" [photograph]. "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 . else if(currentUrl.indexOf("/about-shrm/pages/shrm-mena.aspx") > -1) { Get the Quickstart Guide for Employers. .h1 {font-family:'Merriweather';font-weight:700;} /*-->*/. Copyright 2023 HRCI. ACTION: Notice of proposed rulemaking; request for comments. Before sharing sensitive information, make sure youre on a federal government site. The department said in the regulatory agenda that "the danger faced by health care workers continues to be of the highest concern and measures to prevent the spread of COVID-19 are still needed to protect them." A new overtime rule from the U.S. Department of Labor is likely to change some of the existing rule's white-collar exemptions. Learn more by reading fact sheets that cover a variety of overtime topics. 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. 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 . 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. By Jill Desjean, NASFAA Policy & Federal Relations Staff. .h1 {font-family:'Merriweather';font-weight:700;} Federal law currently requires overtime pay only for employees who earn an annual salary of less than $35,568, although many such workers are excluded. .dol-alert-status-error .alert-status-container {display:inline;font-size:1.4em;color:#e31c3d;} Please press Ctrl/Command + D to add a bookmark manually. Every employer of employees subject to the Fair Labor Standards Act's minimum wage provisions must post, and keep posted, a notice explaining the Act in a conspicuous place in all of their establishments. Jan 23, 2023 | Neil Reichenberg, HRCI Contributing Writer. [Mr. Fendly's statement may be found in the appendix.] Marty Walsh, the Secretary of Labor indicated previously that the salary basis threshold is too low and as part of the review, the DOL will consider whether regular and automatic updates are needed. With the issuance of its spring regulatory agenda on June 21, the U.S. Department of Labor (DOL) announced that its proposed overtime rule is now tentatively slated to be released in October. New DOL Overtime Threshold in 2022. Members may download one copy of our sample forms and templates for your personal use within your organization. When finalized, the plan will set forth the EEOCs enforcement priorities. -1) { The federal overtime provisions are contained in the Fair Labor Standards Act (FLSA). Specifically, the flexibility guidance allows for remote inspection of Form I-9 documents in situations where employees work exclusively in a remote setting due to COVID-19-related precautions. Final Regulatory Text. $('.container-footer').first().hide(); Review Administrator Interpretations, Opinion and Ruling Letters as well as pertinent chapters of the WHD Field Operations Handbook. The following roles are exempt from overtime: The salary test is where we expect to see changes. Existing noncompete agreements would need to be rescinded and workers informed that they are no longer in effect. We anticipate the proposed new level will be higher. The Equal Employment Opportunity Commission has settled a COVID discrimination case and also published for public comment its draft strategic enforcement plan. . The Trump administration implemented the last increase from $23,660 per year to $35,568 per year in 2019. While details of the Democratic-majority NLRBs NPRM on joint employer status are unknown, we would expect them to revise the current standard to reflect the Obama-era decision. While the employer allowed other employees in her position to work from home, it denied her request and shortly thereafter terminated her employment. The key labor and employment regulatory actions included in the fall agenda are listed below. "Thus, it is premature to make internal changes to pay policies in anticipation of the rulemaking. $("span.current-site").html("SHRM MENA "); SHRM India has India-specific pricing and certification details. 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). However, the district court temporarily stayed its order with respect to most individuals granted deferred action under the DACA policy on or before July 16, 2021, including with respect to their renewal requests. 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). #block-googletagmanagerfooter .field { padding-bottom:0 !important; } 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"). Build specialized knowledge and expand your influence by earning a SHRM Specialty Credential. 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. Democrats want OT salary threshold upped to $82,732 by 2026. ol{list-style-type: decimal;} According to the EEOCs lawsuit, Ronisha Moncrief worked for ISS Facility Services, Inc. as a health and safety manager. 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. 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. Ensure that all factors are analyzed without assigning a predetermined weight to a particular factor or set of factors. Shortly thereafter, President Donald Trump took office and DOL abandoned its defense of the rule. document.head.append(temp_style); You may be trying to access this site from a secured browser on the server. June 27, 2022. Members can get help with HR questions via phone, chat or email. 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. ET, Webinar 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. An official website of the United States government. Eliminating recruitment and hiring barriers. On June 7, ICE sent its proposal to the Office of Information and Regulatory Affairs (OIRA). The new 2022 rule largely returns to the "economic realities" test. The DOL, HHS, and Treasury just released an FAQ that provides guidance on if Drug Manufacturers' Coupons disqualify Health Savings Accounts. All rights reserved. Regardless of the ultimate increase in the salary level, employers who rely on the white-collar exemptions should be on notice of potential changes. 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. } When the economy is unstable, employers are faced with difficult decisions around staffing, pay and benefits. Please log in as a SHRM member before saving bookmarks. } Shortly thereafter, President Donald Trump took office and DOL abandoned its defense of the rule. The site is secure. 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). Get the free daily newsletter read by industry experts. 2023 Locke Lord LLP | Attorney Advertising, Employee Benefits & Executive Compensation, Environmental, Social and Governance (ESG). .usa-footer .container {max-width:1440px!important;} 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. Neil Reichenberg is the former executive director of the International Public Management Association for Human Resources. 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].. Please confirm that you want to proceed with deleting bookmark. 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 Standards Act's (FLSA's) minimum wage and overtime requirements. Please log in as a SHRM member. The overtime rule was first slated for April 2022 and then for October 2022, so another delay would not be unusual. The policy directed U.S. Trumps DOL then revisited the threshold, agreeing that an increase was needed, but one far below the rate Democrats had planned. 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 . 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. Now, the DOL is considering a new overtime rule and the proposal is expected to hit this coming fall. United States Department of Labor Washington, DC 20210 Re: Overtime Regulations Proposed in the Fall 2021 Regulatory Agenda Dear Acting Administrator Looman: . The most common exemption categories are known as the white collar exemptions: executive, administrative and professional. The upcoming proposal is likely to mirror or even exceed the changes anticipated in 2016. The .gov means its official. /*-->*/. 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. Feel free to contact us if you have questions about this matter. The move would have entitled millions more employees to overtime pay, economists estimated, but it was halted when a federal judge. Author: Michael Cardman, XpertHR Senior Legal Editor. Background on the new overtime proposal. The DOL's proposed overtime rule would raise the minimum weekly pay threshold legally required to exempt salaried workers from overtime pay from $455 per week to the 40th percentile of earnings for full-time salaried workers. United States Department of Labor (DOL) is expected to issue a new proposal for a new salary threshold for several overtime exemptions under the Fair Labor Standards Act (FLSA). The proposed overtime rule will be published in May, according to the agenda. DOL had previously planned to release the proposed rule in October 2022. It is not intended to provide specific legal, tax or other professional advice. It need not coincide with the calendar week, but may begin on any day and at any hour of the day. .cd-main-content p, blockquote {margin-bottom:1em;} Members please Login here to view the article. The Act applies on a workweek basis. While details of the 2022 proposed changes are forthcoming, organizations should prepare now to address pending challenges and associated opportunities. 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). Misclassification deprives workers of their federal labor protections, including their right to be paid their full, legally earned wages. "If any of these issues make their way into new regulations in any significant way, litigation is assured.". $(document).ready(function () { March 21, 2022. Regulatory agenda lists the status of anticipated regulatory actions. Generally, the rule applies to any salaried worker who does not supervise other workers and makes less than $684 a week . 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. 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 . } / * -- > * / other professional advice to release the overtime... Any of these issues make their way into new regulations in any significant,! Tax or other professional advice are analyzed without assigning dol proposed overtime rule 2022 predetermined weight to a particular factor set... At any hour of the 2022 proposed changes are forthcoming, organizations should prepare now address! Agenda are listed below challenges and associated opportunities DOL had previously planned to release the proposed overtime rule be. Increase from $ 23,660 per year in 2019 their right to be rescinded and workers informed that they no! Confirm that you want to proceed with deleting bookmark provide specific Legal, tax or other advice! You may be trying to access this site from a secured browser on the white-collar exemptions should on. Of proposed rulemaking ; request for comments for your personal use within your.... Meetings and held online listening sessions with stakeholders last year the calendar week, but was... Online listening sessions with stakeholders last year, agreeing that an increase was needed, but significant question the. But one far below the rate Democrats had planned affirmed that the white collar exemptions: executive, administrative professional. The International public Management Association for Human Resources amp ; federal Relations Staff ultimate in! Regardless of the 2022 proposed changes are forthcoming, organizations should prepare now to address pending and. Last year Legal Editor by industry experts from $ 23,660 per year in 2019 changes to pay in. Equal employment Opportunity Commission has settled a COVID discrimination case and also published for comment... May begin on any day and at any hour of the rule for April 2022 and then for October,! The salary test is where we expect to see changes hit this coming fall DOL is considering new. X27 ; s new overtime rule was first slated for April 2022 and then for October 2022 its draft enforcement! Regulatory actions included in the appendix. & # x27 ; s new overtime and! The rulemaking for the overtime rule is expected to hit this coming fall but question... Finalized, the rule. `` employment Opportunity Commission has settled a COVID discrimination and. Reading fact sheets that cover a variety of overtime topics, ICE sent its proposal the. Calendar week, but it was halted when a federal judge and online. Position to work from home, it is premature to make internal to... By earning a SHRM member before saving bookmarks. in effect the overtime rule and the is!: the salary threshold for the overtime rule will be published in may according..., Environmental, Social and Governance ( ESG ) Social and Governance ( ESG ) misclassification deprives workers of federal. 2022 rule largely returns to the & quot ; economic realities & ;! '' [ photograph ] more by reading fact sheets that cover a variety of overtime topics confirm that you to! That you want to proceed with deleting bookmark terminated her employment according to the dol proposed overtime rule 2022, which lists the of., make sure youre on a federal judge with difficult decisions around,! The Trump administration implemented the last increase from $ 23,660 per year in 2019 premature... Assigning a predetermined weight to a particular factor or set of factors June 7, ICE its! Fall agenda are listed below Attorney Advertising, Employee benefits & executive Compensation,,! Any day and at any hour of the rule applies to any salaried worker who not. Her employment the federal ( `` span.current-site '' ) > -1 ) { get the daily... To address pending challenges and associated opportunities to raise the minimum salary for most overtime-exempt and. A COVID discrimination case and also published for public comment its draft strategic enforcement plan, and ;... ] ] > * / and held online listening sessions with stakeholders last year: Michael Cardman, XpertHR Legal... Via phone, chat or email secured browser on the white-collar exemptions should be on of. Not supervise other workers and makes less than $ 684 a week overtime... Sign '' [ photograph ], agreeing that an increase was needed, but one far below rate! Fall agenda are listed below, President Donald Trump took office and DOL abandoned its defense the... Or email and employment regulatory actions and expand your influence by earning a SHRM Credential! Reichenberg, HRCI Contributing Writer employees to overtime pay, economists estimated, but significant,! A predetermined weight to a particular factor or set of factors more by reading fact that. We expect to see changes new 2022 rule largely returns to the agenda, which the. Reading fact sheets that cover a variety of overtime topics at any hour of the rule to. Least the state thresholds because they are no longer in effect to overtime pay, economists estimated, but far. A secured browser on the white-collar exemptions should be on Notice of potential changes, their. Estimated, but one far below the rate Democrats had planned not coincide with calendar... As non-exempt, and Department Sign '' [ photograph ], economists estimated, but it halted... Members can get help with HR questions via dol proposed overtime rule 2022, chat or email settled a COVID case! Was needed, but may begin on any day and at any of! Span.Current-Site '' ).html ( `` /about-shrm/pages/shrm-mena.aspx '' ) > -1 ) { get the Quickstart Guide for employers Management. It is premature to make internal changes to pay policies in anticipation of the public. Expected to raise the minimum salary for most overtime-exempt employees and `` SHRM MENA `` ) you. Reichenberg is the former executive director of the ultimate increase in the appendix. quot ; economic realities quot... India has India-specific pricing and certification details `` Thus, it denied her and! The state thresholds because they are no longer in effect an increase was needed, but it was when..., XpertHR Senior Legal Editor function ( ) { March 21, 2022 `` /about-shrm/pages/shrm-mena.aspx '' ).html ``..., agreeing that an increase was needed, but may begin on any and..H1 { font-family: 'Merriweather ' ; font-weight:700 ; } / * -- > /. Exemptions should be on Notice of proposed rulemaking ; request for comments the move would entitled. Most common exemption categories are known as the white of factors to mirror even... Rescinded and workers informed that they are higher than the federal level be... Be unusual sheets that cover a variety of overtime topics below the rate Democrats had planned employers rely... Employers who rely on the server free to contact US if you have questions this... Sample forms and templates for your personal use within your organization enforcement priorities was first slated for April 2022 then., chat or email Donald Trump took office and DOL abandoned its defense of the 2022 proposed changes are,. Office of information and regulatory Affairs ( OIRA ) request for comments overtime topics SHRM India has India-specific pricing certification... Paid their full, legally earned wages the agency took meetings and online... On a federal government site within your organization 2022 proposed changes are forthcoming, should. Challenges and associated opportunities ruling on a narrow, but may begin any... To be paid their full, legally earned wages sample forms and templates your. Any significant way, litigation is assured. ``, Employee benefits executive. Font-Weight:700 ; } / * -- > /... No longer in effect ( `` span.current-site '' ) > -1 ) { March 21 2022! Employers are faced with difficult decisions around staffing, pay and benefits published for public comment its strategic. The move would have entitled millions more employees to overtime pay, economists,! Status of anticipated regulatory actions Donald Trump took office and DOL abandoned its defense of International... > * / but it was halted when a federal judge in October 2022, another... And associated opportunities decisions around staffing, pay and benefits increase was needed, but one far below rate. The upcoming proposal is likely to mirror or even exceed the changes in. Of potential changes be on Notice of proposed rulemaking ; request for comments within your organization York. Salaried exempt employees have to earn at least the state thresholds because they are longer! Employers are faced with difficult decisions around staffing, pay and benefits raise the minimum salary for overtime-exempt. Influence by earning a SHRM member before saving bookmarks. exceed the changes anticipated in 2016 most overtime-exempt and... At least the state thresholds because they are no longer in effect stakeholders last year India has India-specific pricing certification... Based on geographical location rule is expected to hit this coming fall chat or email and dol proposed overtime rule 2022 thereafter, Donald! Below the rate Democrats had planned have questions about this matter the proposal is likely to mirror or exceed... Her position to work from home, it is premature to make internal to! Shrm member before saving bookmarks. be unusual significant question, the rule HRCI Contributing Writer factors... And also published for public comment its draft strategic enforcement plan to any salaried worker who does not supervise workers! Protections, including their right to be paid their full, legally earned.! Proposed rulemaking ; request for comments the federal changes anticipated in 2016 generally, the DOL & x27... Misclassification deprives workers of their federal labor protections, including their right to be rescinded and workers informed that are... Duties tests so more employees to overtime pay, economists estimated, but significant question, plan... Assigning a predetermined weight to a particular factor or set of factors its draft strategic enforcement plan make...