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. Before sharing sensitive information, make sure youre on a federal government site. . p.usa-alert__text {margin-bottom:0!important;} The proposed overtime rule will be published in May, according to the agenda. Shortly thereafter, President Donald Trump took office and DOL abandoned its defense of the rule. Joint-employer status under the National Labor Relations Act. Averaging of hours over two or more weeks is not permitted. To request permission for specific items, click on the reuse permissions button on the page where you find the item. | 2 p.m. While details of the 2022 proposed changes are forthcoming, organizations should prepare now to address pending challenges and associated opportunities. "If any of these issues make their way into new regulations in any significant way, litigation is assured.". The DOL's December agenda appears to be the first real step in that direction, announcing it will propose an update in . 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. It is not intended to provide specific legal, tax or other professional advice. 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. 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. Overtime Proposed Rule Release Planned in May, ISO/TC 260 HR Management and HRCI Global Standards Leadership, HRCI Certification for Military HR Personnel. /*-->*/. else if(currentUrl.indexOf("/about-shrm/pages/shrm-mena.aspx") > -1) { (2015). Revert to the longstanding interpretation of the economic reality factors. Colorado Maine New York The salary threshold for the overtime exemption varies based on geographical location. Last fall, the DOL said it would propose new overtime rules - which are expected to raise the minimum salary for most overtime-exempt employees and possibly update the . Federal government websites often end in .gov or .mil. By: Jenny R. Yang February 28, 2023. 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. Learn more about the Wage and Hour Division. $("span.current-site").html("SHRM China "); When the economy is unstable, employers are faced with difficult decisions around staffing, pay and benefits. Topics covered: HR management, compensation & benefits, development, HR tech, recruiting and much more. 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. The proposal is expected to be issued in the near future. } 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. 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 federal overtime provisions are contained in the Fair Labor Standards Act (FLSA). 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. 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. 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. 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. We also anticipate some proposed changes to the duties tests. The most recent regulatory agenda set the date at May 2023. . Please purchase a SHRM membership before saving bookmarks. 2022: Fall 2022 Rulemaking Comments. proposed changes. 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. 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. ol{list-style-type: decimal;} .manual-search ul.usa-list li {max-width:100%;} Your session has expired. 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. Jan 23, 2023 | Neil Reichenberg, HRCI Contributing Writer. Although there are no legal implications regarding the administration's failure to issue the agenda in a timely manner, there are important considerations for the regulated community. On Jan. 4, the Biden administration released its long-awaitedFall 2022 Unified Agenda of Regulatory and Deregulatory Actions. .h1 {font-family:'Merriweather';font-weight:700;} The Department delayed the rule on March 4, 2021, and then withdrew it on May 6, 2021, believing that it was inconsistent with the Fair Labor Standards Act's text and purpose. Rather than appeal the judge's decision, which was criticized by many unions and worker advocates, the Trump administration proposed a new rule in 2019 that elevated the overtime wage . Restore the multifactor, totality-of-the-circumstances analysis to determine whether a worker is an employee or an independent contractor under the FLSA. The DOL promised to consider this feedback and may make changes to its draft rule before publishing a final version. [CDATA[/* >