Sign up for our newsletter and get the latest to your inbox. The overtime rule was first slated for April 2022 and then for October 2022, so another delay would not be unusual. 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. That salary threshold had been set at $23,600 ($455 per week) since 2004, and DOL sent shockwaves through the employment community when it proposed and finalized a rule to more than double . Biden's DOL may seek to increase the threshold even greater than the 2016 proposal under Obama. The current Final Rule on Overtime has been in effect since Jan. 1, 2020, and, at the time of its implementation, made 1.3 million American workers newly eligible for overtime. All rights reserved. Webinar URL: https://www.complianceprime.com/details/980/new-proposed-overtime-rule-2022The Department of Labor will soon issue new . 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. 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. Comments on the draft plan must be submitted by February 9, 2023. 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 .gov means its official. Author: Michael Cardman, XpertHR Senior Legal Editor. Effective Jan. 1, 2020, the federal minimum salary threshold increased to $684 a week. For example, the lack of transparency in knowing what to expect makes it more difficult to hold the administrative state accountable for its plans. A vast majority of organizations across numerous industries face potential compliance and monetary impacts if the legislation passes. .usa-footer .container {max-width:1440px!important;} Joint-employer status under the National Labor Relations Act. 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). 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. .agency-blurb-container .agency_blurb.background--light { padding: 0; } 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. 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. To request permission for specific items, click on the reuse permissions button on the page where you find the item. On June 21, the Biden administration released the anticipated Spring 2022 Unified Agenda of Regulatory and Deregulatory Actions (Regulatory Agenda), providing the public with a detailed glimpse into the regulatory and deregulatory activities under development across approximately 67 federal departments, agencies and commissions. @media only screen and (min-width: 0px){.agency-nav-container.nav-is-open {overflow-y: unset!important;}} Your session has expired. 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 . The Department of Labor's Wage and Hour Division is expected to propose new rules on independent contractor classification and overtime entitlement requirements in the . Gain the intel you need now to successfully anticipate and navigate employment laws, stay compliant and mitigate legal risks. Do you need help with your HR questions? On June 7, ICE sent its proposal to the Office of Information and Regulatory Affairs (OIRA). Start Preamble AGENCY: Wage and Hour Division, Department of Labor. An agency within the U.S. Department of Labor, 200 Constitution Ave NW The deadline to announce such changes was initially set for April 2022 but has since seen several delays. $('.container-footer').first().hide(); Ruling on a narrow, but significant question, the US Supreme Court affirmed that the white . Your session has expired. The DOL's new overtime rule is expected to raise the minimum salary for most overtime-exempt employees and . 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. 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. Members please Login here to view the article. The May goal represents a second delay. 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. Colorado Maine New York The salary threshold for the overtime exemption varies based on geographical location. ol{list-style-type: decimal;} } It is possible that DHS will use that feedback to develop and implement this NPRM. In the February NPRM, USDA provided only 32 days for stakeholder comment submissions on the proposal. Build specialized knowledge and expand your influence by earning a SHRM Specialty Credential. Regardless of the ultimate increase in the salary level, employers who rely on the white-collar exemptions should be on notice of potential changes. The DOL has considered modifying the regulations in this regard a few times in recent yearsbut hasended up leaving the current tests alone. Learn more about the Wage and Hour Division. Congress must also have keen insight of the administration's regulatory plans to assess its budget requests and operations. The courts blocked this proposal shortly before it was scheduled for implementation. 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. 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 . 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. Get the Quickstart Guide for Employers. DHS has provided temporary flexibility in the Form I-9 verification process since the beginning of the COVID-19 pandemic. 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. Final Regulatory Text. The U.S. Department of Labor has rescheduled the release of its proposed salary basis threshold rule for May. Align the departments approach with courts FLSA interpretation and the economic reality test. 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. 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. Access a collection of interactive online tools and presentations that address overtime pay requirements. Affiliate of the Society for Human Resource Management, Home Blog 2022 DOLS PROPOSED OVERTIME RULE. .paragraph--type--html-table .ts-cell-content {max-width: 100%;} A sign stands in front of the U.S. Department of Labor. Before sharing sensitive information, make sure youre on a federal government site. . In November 2019, before it could take effect, a federal judge in Texas enjoined the new overtime rule on a nationwide basis, declaring it "unlawful.". Generally, the rule applies to any salaried worker who does not supervise other workers and makes less than $684 a week . 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." Learn how SHRM Certification can accelerate your career growth by earning a SHRM-CP or SHRM-SCP. @media only screen and (min-width: 0px){.agency-nav-container.nav-is-open {overflow-y: unset!important;}} Agency: Department of Labor(DOL) Priority: Economically Significant RIN Status: Previously published in the Unified Agenda Agenda Stage of Rulemaking: Proposed Rule Stage Major: Yes Unfunded Mandates: Undetermined CFR Citation: 29 CFR 541 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. else if(currentUrl.indexOf("/about-shrm/pages/shrm-mena.aspx") > -1) { Comments on the proposed rule are due by March 10, 2023. The DOL has set a new deadline for overtime threshold increases. Department of Labor Intends to Extend Overtime Pay Requirements to More Workers. 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. Though it marked the first increase to the FLSA's overtime threshold in over a . Please press Ctrl/Command + D to add a bookmark manually. The two areas of anticipated revision are to the salary level and duties tests for an employee to be exempt from overtime pay. Starting in June 2020, employees were required to return to work onsite full-time. The amount for small employers will increase again on Jan. 1, 2023 to $15 per hour. just days before it was set to take effect. The site is secure. However, court challenges prevented the rule from taking effect and it was permanentlyenjoinedin September 2017. This spring, the U.S. Department of Labor (DOL) is expected to announce recommended changes related to employee salary for overtime rules as part of the Fair Labor Standards Act (FLSA). The federal overtime provisions are contained in the Fair Labor Standards Act (FLSA). .usa-footer .grid-container {padding-left: 30px!important;} There is no limit in the Act on the number of hours employees aged 16 and older may work in any workweek. [CDATA[/* >