The DOL promised to consider this feedback and may make changes to its draft rule before publishing a final version. State law requires [] 2022. According to FTC Chair Lina M. Khan, Noncompetes block workers from freely switching jobs, depriving them of higher wages and better working conditions, and depriving businesses of a talent pool that they need to build and expand. The FTC cited research showing that noncompete agreements restrict the mobility of impacted workers thus harming competition in the labor markets. Under the FLSA, employees must receive overtime pay of at least one and one-half times their regular rate of pay for work in excess of forty hours per workweek. Ensure that all factors are analyzed without assigning a predetermined weight to a particular factor or set of factors. Restore the multifactor, totality-of-the-circumstances analysis to determine whether a worker is an employee or an independent contractor under the FLSA. XpertHR is part of the LexisNexis Risk Solutions Group portfolio of brands. p.usa-alert__text {margin-bottom:0!important;} } .table thead th {background-color:#f1f1f1;color:#222;} The key labor and employment regulatory actions included in the fall agenda are listed below. Feel free to contact us if you have questions about this matter. $(document).ready(function () { 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. 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 . The agency ultimately proposed and successfully implemented a $35,568 threshold. The agency took meetings and held online listening sessions with stakeholders last year. 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). 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 . CUPA-HR filedcommentsin opposition to the Trump administrations regulations on the issue andin responseto the Biden administrations RFI. 2023 Locke Lord LLP | Attorney Advertising, Employee Benefits & Executive Compensation, Environmental, Social and Governance (ESG). 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. Agendas are generally released in the fall and spring and set target dates for each agency and sub-agencys regulatory actions for the coming year. 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. The Federal Trade Commission has issued a proposed rule that would ban employers from imposing noncompete agreements on their workers. else if(currentUrl.indexOf("/about-shrm/pages/shrm-mena.aspx") > -1) { Tuesday, February 28, 2023. 10.19.2022 The Department of Labor is seeking public comment on or before November 28, 2022, regarding its proposed changes to the classification of independent contractors under the Fair Labor Standards Act. Please purchase a SHRM membership before saving bookmarks. The Biden administration has signaled its desire to return to the approach attempted in 2016. 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. [CDATA[/* >*/. The proposed rule, which would rescind and replace a prior rule published in January 2021, would shift the analysis of whether a worker is an employee of a business for purposes . [Mr. Fendly's statement may be found in the appendix.] Department of Labor Intends to Extend Overtime Pay Requirements to More Workers. Procedures on voluntary recognitionof unions. Affiliate of the Society for Human Resource Management, Home Blog 2022 DOLS PROPOSED OVERTIME RULE. President Biden touted increasing the salary threshold throughout his presidential campaign. Employees paid below that figure must receive time-and-one-half their regular rate of pay when they work more than 40 hours in a workweek. 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). Any information you send to Locke Lord LLP through this website is on a non-confidential and non-privileged basis. On October 11, 2022, the U.S. Department of Labor (DOL) unveiled a new proposed rule that could make it more difficult for workers to be classified as independent contractors under the Fair Labor Standards Act (FLSA). Labor Rights. He is an attorney, a frequent writer and speaker on public policy and human resource issues, and an adjunct faculty member at George Mason University. Topics covered: Employee learning, training, onboarding, mentoring, career development and more. On June 7, ICE sent its proposal to the Office of Information and Regulatory Affairs (OIRA). CUPA-HR has engaged with DHS on the Form I-9 flexibilities through the pandemic. Please press Ctrl/Command + D to add a bookmark manually. $('.container-footer').first().hide(); 2022: Fall 2022 Rulemaking Comments. The proposed rule would provide guidance on classifying workers and seeks to combat employee misclassification. Misclassification is a serious issue that . .manual-search ul.usa-list li {max-width:100%;} The May goal represents a second delay. While that guidance is onlytemporary, DHS issued aRequest for Public Input (RPI) on October 26, 2021, to determine whether those flexibilities should be kept in place permanently. The federal rules governing overtime pay were established by the Fair Labor Standards Act (FLSA), which also described which workers are exempt from . Get the Quickstart Guide for Employers. 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. Misclassification denies basic worker protections such as minimum wage and overtime pay and affects a wide range of workers in the home care, janitorial services, trucking, delivery, construction, personal services, and hospitality and restaurant industries, among others. just days before it was set to take effect. 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 $82,732 by 2026, the letter said. "Thus, it is premature to make internal changes to pay policies in anticipation of the rulemaking. Align the departments approach with courts FLSA interpretation and the economic reality test. 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.. Salaried exempt employees have to earn at least the state thresholds because they are higher than the federal . Find the latest news and members-only resources that can help employers navigate in an uncertain economy. The upcoming proposal is likely to mirror or even exceed the changes anticipated in 2016. A final rule on improving tracking of workplace injuries and illnesses is slated for December, as well. United States Department of Labor Washington, DC 20210 Re: Overtime Regulations Proposed in the Fall 2021 Regulatory Agenda Dear Acting Administrator Looman: . 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.". Additionally, not knowing regulatory priorities can have an impact on budget and resource planning for employers, especially during a time of high inflation and anticipated economic recission. In closing AMB applauds the substantial effort of the Department of Labor in overhauling these regulations. Now, the DOL is considering a new overtime rule and the proposal is expected to hit this coming fall. div#block-eoguidanceviewheader .dol-alerts p {padding: 0;margin: 0;} The overtime rule was first slated for April 2022 and then for October 2022, so another delay would not be unusual. SUMMARY: This notice of proposed rulemaking (NPRM) proposes to rescind the final rule entitled "Joint Employer Status Under the Fair Labor Standards Act," which published on January 16, 2020 and took effect on March 16, 2020. 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. 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. 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 . 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. 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. In the February NPRM, USDA provided only 32 days for stakeholder comment submissions on the proposal. Learn more about the Wage and Hour Division. They are not intended either as a substitute for professional advice or judgment or to provide legal or other advice with respect to particular circumstances. . Congress must also have keen insight of the administration's regulatory plans to assess its budget requests and operations. According to DOL, the 40th percentile equated to $921 per week in 2013 and will be about $970 when the rule is . (2015). 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. DOL addressed the topic again in 2019 and enacted changes on January 1, 2020. SHRM India has India-specific pricing and certification details. .usa-footer .grid-container {padding-left: 30px!important;} Today, the Office of Federal Contract Compliance Programs (OFCCP) acted to protect workers from discrimination and safeguard principles of religious freedom by rescinding the rule, "Implementing Legal Requirements Regarding the Equal Opportunity Clause's Religious Exemption.". Gallagher supports organizations with comprehensive solutions to include exemption review, compensation and classification structures, enhanced management of ongoing joint-employer challenges and implementation strategies. 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. Federal government websites often end in .gov or .mil. * / learn how SHRM Certification can your... 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