The proposed rule . When autocomplete results are available use up and down arrows to review and enter to select. 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). Different workweeks may be established for different employees or groups of employees. Changes to overtime pay requirements have beenimplementedthrough regulations under both the Obama and Trump administrations. The agency ultimately proposed and successfully implemented a $35,568 threshold. 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Ruling on a narrow, but significant question, the US Supreme Court affirmed that the white . Most recently, DHS announced an additional extension of the Form I-9 flexibility guidance through October 31, 2022. temp_style.textContent = '.ms-rtestate-field > p:first-child.is-empty.d-none, .ms-rtestate-field > .fltter .is-empty.d-none, .ZWSC-cleaned.is-empty.d-none {display:block !important;}'; Those changes, however, were less significant than the 2016 efforts to modify FLSA provisions, which were halted later due to a preliminary injunction. Supreme Court: Salary, Not Daily Pay, Required for FLSA Overtime Exemptions. When the economy is unstable, employers are faced with difficult decisions around staffing, pay and benefits. Modify the duties tests so more employees are classified as non-exempt, and. * * *On October 11, 2022, the U.S. Department of Labor released a proposed rule to update the test for determining whether a worker is an employee under the Fair Labor Standards Act (FLSA) or an independent contractor. .manual-search ul.usa-list li {max-width:100%;} According to the FTC, this new rule could increase wages by nearly $300 billion annually and expand career opportunities for about 30 million Americans. From March 2020 through June 2020, employees were required to work remotely four days per week due to the COVID-19 pandemic. "This type of change would also disqualify many currently exempt employees from their current exempt status," he said. The overtime rule was first slated for April 2022 and then for October 2022, so another delay would not be unusual. Compete for talent by understanding how anticipated significant changes to FLSA earnings thresholds will affect your organization, Human Resources and Compensation Consulting, Prepare Now for FLSA Rule Changes Coming Soon, Affordable Housing Insurance and Consulting for Nonprofits, Business Continuity Planning and Resiliency Services, Claims Management and Third Party Administration, Compensation Consulting and Total Rewards Programs, Diversity, Equity and Inclusion (DEI) Consulting, Human Resources and Compensation Consulting Overview, Meet the Human Resource Compensation Consulting Team, Physical and Emotional Wellbeing Consulting, National Center for Civil and Human Rights, National Underground Railroad Freedom Center, Some analysts anticipate salary thresholds as high as. var temp_style = document.createElement('style'); 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 salary basis threshold was increased in 2019 from $23,660/year to $35,568/year. June 29, 2022. Must be a Paid Member or a Free Trial Member to Access Content. 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 . /*-->*/. Restore the multifactor, totality-of-the-circumstances analysis to determine whether a worker is an employee or an independent contractor under the FLSA. 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. .paragraph--type--html-table .ts-cell-content {max-width: 100%;} You may be trying to access this site from a secured browser on the server. 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. Survey Participation and Information Templates, CUPA-HR Welcomes a New Board of Directors for 2022-23. Tuesday, February 28, 2023. Biden's DOL may seek to increase the threshold even greater than the 2016 proposal under Obama. This website uses cookies to understand your use of our website and to give you a better experience. Averaging of hours over two or more weeks is not permitted. 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. Oct 11 2022 10:37 AM EDT Updated Tue, . CUPA-HR filed anextension request with the department asking for an additional 90 days to evaluate the NPRMs impact on [members] research missions and collect the information needed in order to provide thoughtful and accurate input to the USDA, as well as official comments that were pulled from 2012 comments CUPA-HR submitted with the Society for Human Resource Management (SHRM). As the current minimum salary amount is $684/week, it is expected for DOL . Assist with the proper classification of employees and independent contractors under the FLSA. We anticipate the proposed new level will be higher. } 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. Agriculture Acquisition Regulation: Internal Policy and Procedural Updates and Technical Changes. Your session has expired. Require automatic future increases to the threshold. var currentLocation = getCookie("SHRM_Core_CurrentUser_LocationID"); The Biden Administration's fall 2021 regulatory agenda projects that the Department of Labor (DOL) will revisit before April 2022 the salary level at which an employee could be exempted from federal overtime and minimum wage requirements, as well as address other aspects of the overtime regulatory regime. However, court challenges prevented the rule from taking effect and it was permanentlyenjoinedin September 2017. [CDATA[/* >