The agency already has missed its target for the overtime rule twice. These changes moved the threshold to $684 per week . enter into or attempt to enter into a noncompete agreement with a worker; maintain a noncompete agreement with a worker; or. Colorado Maine New York The salary threshold for the overtime exemption varies based on geographical location. $("span.current-site").html("SHRM China "); As an update, the April deadline has passed, but it is now anticipated that the DOL intends to propose new FLSA overtime rules this October. 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. Employers should carefully review all pay practices, exemptions from overtime, and potential FLSA liability in light of these potential changes. */. The DHS has appealed the district court's decision. 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. Thank you again for providing me the opportunity to testify on the Department of Labor final overtime rule, and I would be happy to answer any questions that any of the members may have. Citizenship and Immigration Services (USCIS) to create a process to defer theremoval of certain noncitizens who years earlier came to the United States as children, meet other criteria and do not present other circumstances that would warrant removal, according to the DHS. 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 DOL, HHS, and Treasury just released an FAQ that provides guidance on if Drug Manufacturers' Coupons disqualify Health Savings Accounts. In the Biden administration's fall 2021 regulatory agenda, the Department of Labor (DOL)'s Wage and Hour Division (WHD) announced that it planned to release in April 2022 a Notice of Proposed Rulemaking (NPRM) changing criteria for the "executive, administrative and professional" exemptions from the overtime pay requirements under the Fair Labor Standards Act (FLSA). Feel free to contact us if you have questions about this matter. XpertHR is part of the LexisNexis Risk Solutions Group portfolio of brands. Please press Ctrl/Command + D to add a bookmark manually. A sign stands in front of the U.S. Department of Labor. The DOL has set a new deadline for overtime threshold increases. Final Regulatory Text. Neither Arthur J. Gallagher & Co., nor its affiliates provide accounting, legal or tax advice. The DOL has considered modifying the regulations in this regard a few times in recent yearsbut hasended up leaving the current tests alone. 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 DOL's new overtime rule is expected to raise the minimum salary for most overtime-exempt employees and . Access a collection of interactive online tools and presentations that address overtime pay requirements. Misclassification is a serious issue that . Misclassification is a serious issue that denies workers rights and protections under federal labor standards, promotes wage theft, allows certain employers to gain an unfair advantage over law-abiding businesses, and hurts the economy at-large. .agency-blurb-container .agency_blurb.background--light { padding: 0; } 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. * * *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. The EEOC reported that in resolving the lawsuit, the employer agreed to a two-year consent decree; will pay the former employee $47,500 in monetary damages; train its employees on the ADA; make changes to its employment policies; and allow the EEOC to monitor how it handles future requests for accommodation. Federal government websites often end in .gov or .mil. Shortly thereafter, President Donald Trump took office and DOL abandoned its defense of the rule. The proposal is expected to be issued in the near future. 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. Please confirm that you want to proceed with deleting bookmark. ET, Presented by studioID and Express Employment Professionals, The comprehensive list of HR trends to watch in 2023, Faith groups ask SCOTUS to overturn religious accommodation precedent, Biden to appoint Julie Su as Labor Secretary, Interpreting the FMLA, one case at a time, Quiet Black History Month a warning sign, DEI pros say, Everything employers must know on employee development, Boost Employee Engagement with Small Moments of Joy at Work, Winning the War for Talent: Why On-Demand Pay Is Becoming the Must-Have Benefit to Get and Keep the Best Employees, Diversity exec Saraswati resigns amid claims she lied about her race, People arent getting the COVID booster. While details of the 2022 proposed changes are forthcoming, organizations should prepare now to address pending challenges and associated opportunities. For questions or additional information, contact Reichenberg atneilreichenberg@yahoo.com. Conversely, there is nothing stopping the DOL from issuing new rules before its target dates, either. In fact, Walsh indicated in the June hearing that the DOL thinks the rule should be reviewedand possibly updatedregularly. Shannon Meade is executive director of Littler's Workplace Policy Institute in Washington, D.C. 2023 Littler. var temp_style = document.createElement('style'); The DOL's proposed overtime rule would raise the minimum weekly pay threshold legally required to exempt salaried workers from overtime pay from $455 per week to the 40th percentile of earnings for full-time salaried workers. Guidance materials about overtime topics, including an Employment Law Guide, Qs & As, guide to overtime laws in the states, and more. Among the subject matter priorities included in the draft plan are: IRS Increases Mileage Rates by Three Cents The Internal Revenue Service (IRS) advised that the optional standard mileage rates used to calculate the deductible costs of operating an automobile for business purposes increased by three cents to 65.5 cents per mile effective on January 1, 2023. $(document).ready(function () { 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. var currentUrl = window.location.href.toLowerCase(); WASHINGTON The U.S. Department of Labor will publish a Notice of Proposed Rulemaking on Oct. 13 to help employers and workers determine whether a worker is an employee or an independent contractor under the Fair Labor Standards Act. Labor Department's New Overtime Rule Will Ruffle Feathers - Speaking of overtime, the DOL has indicated it will issue a new federal regulation transforming the overtime rule by April 2022, and . 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. Regardless of the ultimate increase in the salary level, employers who rely on the white-collar exemptions should be on notice of potential changes. In May 2016, the Obama administrations DOL issued afinal ruleincreasing the salary threshold from $23,660 to $47,476 per year and imposed automatic updates to the threshold every three years.