dol proposed overtime rule 2022

Typically, these semi-annual agendas are issued in the spring and fall and outline federal agency goals for the months ahead. 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. } . Any information you send to Locke Lord LLP through this website is on a non-confidential and non-privileged basis. Feel free to contact us if you have questions about this matter. While details of the 2022 proposed changes are forthcoming, organizations should prepare now to address pending challenges and associated opportunities. The U.S. Department of Labor (DOL) had predicted it would issue its proposed new rule to overhaul the overtime regulations of the Fair Labor Standards Act in October, but we are still waiting for that proposal. 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. 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 proposed overtime rule will be published in May, according to the agenda, which lists the status of anticipated regulatory actions. In the Fall 2021 Regulatory Agenda, the DOL's Wage and Hour Division (WHD) announced plans to issue an NPRM as early as April 2022 to address overtime pay requirements for certain white-collar employees.1 Since 1938, the Fair Labor Standards Act (FLSA or Act) has established the minimum wage and overtime pay Wage and Hour Division Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales and Computer Employees, According to the Regulatory Agenda, the Department of Labor (DOL)s Wage and Hour Division (WHD) is now planning to release a Notice of Proposed Rulemaking (NPRM) to address changes to the Fair Labor Standards Act (FLSA)s overtime pay requirements in October 2022. . Preventing and remedying systemic harassment including sexual harassment and harassment based on race, disability, age, national origin, religion, color, and sex (including pregnancy, sexual orientation, and gender identity). Shortly thereafter, President Donald Trump took office and DOL abandoned its defense of the rule. Some of the topics on which comment was requested, along with a number of alternative approaches described in the proposed rule, suggests that the ultimate product of the rulemaking may be less than a total ban. $(document).ready(function () { These changes moved the threshold to $684 per week . The U.S. Department of Labor has rescheduled the release of its proposed salary basis threshold rule for May. #block-googletagmanagerfooter .field { padding-bottom:0 !important; } .dol-alert-status-error .alert-status-container {display:inline;font-size:1.4em;color:#e31c3d;} FLSA requirements relating to minimum wage, overtime, and . 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In . .agency-blurb-container .agency_blurb.background--light { padding: 0; } "If any of these issues make their way into new regulations in any significant way, litigation is assured.". The services of an appropriate professional should be sought regarding your individual situation. 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. .usa-footer .grid-container {padding-left: 30px!important;} The FTC is accepting public comments on the proposed rule until March 10, 2023, and they can be submitted online. 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. 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. 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. An employee's workweek is a fixed and regularly recurring period of 168 hours seven consecutive 24-hour periods. 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). Topics covered: HR management, compensation & benefits, development, HR tech, recruiting and much more. To cope with a paradoxical labor market, HR pros still squarely focused on recruiting may need to re-evaluate role requirements, inclusion initiatives and more. An HR Advisor is here to help by email, live chat, or phone. .h1 {font-family:'Merriweather';font-weight:700;} Learn more about the Wage and Hour Division. XpertHR is part of the LexisNexis Risk Solutions Group portfolio of brands. In 2016, a proposed change would have moved the salary threshold from $455 per week ($23,660 annualized) to $913 per week ($47,476). The May goal represents a second delay. The materials and information included in the XpertHR service are provided for reference purposes only. On February 22, 2023, the final farm labor overtime regulations were adopted, codifying Commissioner Reardon's order adopting the recommendation of the Farm Laborers Wage Board to lower the current 60-hour threshold for overtime pay to 40 hours per week by January 1, 2032, allowing 10 years to phase in the new threshold. The following roles are exempt from overtime: The salary test is where we expect to see changes. Changes to overtime pay requirements have beenimplementedthrough regulations under both the Obama and Trump administrations. The DOL review and anticipated announcement represent a quick turnaround, given the previous update to overtime rules implemented in 2019 delivered the first substantive changes enacted since 2004. Comments, which must be submitted from Oct. 13 to Nov. 28, 2022, should be submitted online or in writing to the Division of Regulations, Legislation and Interpretation, Wage and Hour Division, U.S. Department of Labor, Room S-3502, 200 Constitution Ave. NW, Washington, DC 20210. The .gov means its official. The most common exemption categories are known as the white collar exemptions: executive, administrative and professional. Pay transparency, employee privacy, compassionate leadership and political biases are among this years hot debates, according to labor experts. 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. 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. 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 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. 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. Topics covered: Talent acquisition, diversity and inclusivity in hiring, employer branding, performance evaluations and more. 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. It is not intended to provide specific legal, tax or other professional advice. 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. More than 54,000 people submitted comments on the rule. These changes moved the threshold to $684 per week ($35,568 annualized) and allowed for up to 10% of non-discretionary bonuses to satisfy threshold requirements. Members may download one copy of our sample forms and templates for your personal use within your organization. Last fall, the Department of Labor (DOL) published its 2021 regulatory priorities, which included plans to update the top salary level that would qualify for exemption from overtime pay (known as the "white collar exemption") under the Fair Labor . The new rule goes into effect January 1, 2020. The new proposal is likely to be issued in the near future and could be issued as early as this month. United States Department of Labor Washington, DC 20210 Re: Overtime Regulations Proposed in the Fall 2021 Regulatory Agenda Dear Acting Administrator Looman: . On June 7, ICE sent its proposal to the Office of Information and Regulatory Affairs (OIRA). "Thus, it is premature to make internal changes to pay policies in anticipation of the rulemaking. .usa-footer .container {max-width:1440px!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. The Notice of Proposed Rulemaking was originally slated for April 2022 but then delayed to October of that year. The US Department of Labor (DOL) is planning for a busy springtime. #block-googletagmanagerheader .field { padding-bottom:0 !important; } 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. ACTION: Notice of proposed rulemaking; request for comments. Shannon Meade is executive director of Littler's Workplace Policy Institute in Washington, D.C. 2023 Littler. 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.". 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. 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