The U.S. Department of Labor (DOL) recently announced its intent to update the salary level threshold for "white-collar" exemptions to parts of the Fair Labor Standards Act, a regulatory change that could significantly affect community colleges. When the economy is unstable, employers are faced with difficult decisions around staffing, pay and benefits. June 29, 2022. However, court challenges prevented the rule from taking effect and it was permanentlyenjoinedin September 2017. 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. 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." 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 Shannon Meade is executive director of Littler's Workplace Policy Institute in Washington, D.C. 2023 Littler. Feel free to contact us if you have questions about this matter. 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. Topics covered: National employment laws, harassment, accommodations, training, and more. Congress must also have keen insight of the administration's regulatory plans to assess its budget requests and operations. U.S. Department of Labor (DOL)/Wage and Hour Division (WHD), DOL/Office of Labor-Management Standards (OLMS), DOL/Employee Benefits Security Administration (EBSA), Occupational Safety and Health Administration (OSHA). 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 deadline to announce such changes was initially set for April 2022 but has since seen several delays. Starting in June 2020, employees were required to return to work onsite full-time. Please purchase a SHRM membership before saving bookmarks. 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. just days before it was set to take effect. 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. .manual-search ul.usa-list li {max-width:100%;} Normally, overtime pay earned in a particular workweek must be paid on the regular pay day for the pay period in which the wages were earned. The NPRM proposes a framework more consistent with longstanding judicial precedent on which employers have relied to classify workers as employees or independent contractors under the FLSA. Federal government websites often end in .gov or .mil. 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.". 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. Get the Quickstart Guide for Employers. 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. Then the final rule would need to take effect no sooner than 60 days after it is published in the Federal Register, assuming it is classified as a major rule. .usa-footer .container {max-width:1440px!important;} $("span.current-site").html("SHRM MENA ");
The proposed changes will impact Employers and employees. Require automatic future increases to the threshold. 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 . "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 would provide guidance on classifying workers and seeks to combat employee misclassification. | 2 p.m. Neither Arthur J. Gallagher & Co., nor its affiliates provide accounting, legal or tax advice. While it is unclear whether the December NPRM will include the blacklisting language again, the abstract of the re-proposal states that the new proposed rule would be responsive to the comments received on our February 2022 proposal.. Retrieved from, The U.S. Department of Labor has again extended its timeline for proposing a new salary threshold for overtime eligibility, this time to May, according to the agencys. The DOL's new overtime rule is expected to raise the minimum salary for most overtime-exempt employees and possibly update the duties tests as well. EEOC Seeks Comments on Strategic Enforcement Plan The Equal Employment Opportunity Commission (EEOC) has published for public comment, a draft Strategic Enforcement Plan. 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. Based on a thorough review of the Regulatory Agenda, CUPA-HR would like to highlight the following proposed actions for members, including an updated target date for the release of a new overtime proposal. The FTC is accepting public comments on the proposed rule until March 10, 2023, and they can be submitted online. The U.S. Department of Labor has rescheduled the release of its proposed salary basis threshold rule for May. On June 15, 2012, theDHS established the DACA policy. Law360 (June 22, 2022, 2:05 PM EDT) -- The U.S. Department of Labor plans to propose a rule in October that would overhaul certain workers' entitlement to overtime pay, the agency said, pushing . Existing noncompete agreements would need to be rescinded and workers informed that they are no longer in effect. 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.. It is possible that DHS will use that feedback to develop and implement this NPRM. if(currentUrl.indexOf("/about-shrm/pages/shrm-china.aspx") > -1) {
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"). While the employer allowed other employees in her position to work from home, it denied her request and shortly thereafter terminated her employment. The Department of Labor remains committed to addressing the issue of misclassification.. Please log in as a SHRM member before saving bookmarks. The Biden administration has signaled its desire to return to the approach attempted in 2016. [CDATA[/* >*/. represent to a worker, under certain circumstances, that the worker is subject to a noncompete agreement. An HR Advisor is here to help by email, live chat, or phone. | 1 p.m. 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. Before the Fifth Circuit reviewed Judge Mazzants decision, the Trump administration rescinded the rule and raised the salary threshold to the current $684/week standard. An employee's workweek is a fixed and regularly recurring period of 168 hours seven consecutive 24-hour periods. 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. 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