.manual-search ul.usa-list li {max-width:100%;} SHRM India has India-specific pricing and certification details. Ultimately, Judge Amos Mazzant in the United States District Court for the Eastern District of Texas enjoined the new threshold from going into effect after determining the salary increase of more than 100% contravened Congresss intent by supplanting the job duties test and creating a de facto salary-only test. At the time, the DOL estimated that the $921/week threshold would make more than 4.2 million workers ineligible for a white-collar exemption and eligible for overtime pay. In the spring regulatory agenda, the U.S. Department of Homeland Security (DHS) announced that it plans to issue a final rule on Deferred Action for Childhood Arrivals (DACA) in August. p.usa-alert__text {margin-bottom:0!important;} The DOL promised to consider this feedback and may make changes to its draft rule before publishing a final version. 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. The deadline to announce such changes was initially set for April 2022 but has since seen several delays. 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 federal rules governing overtime pay were established by the Fair Labor Standards Act (FLSA), which also described which workers are exempt from . In 2016, a proposed change would have moved the salary threshold from $455 per week ($23,660 annualized) to $913 per week ($47,476). For questions or additional information, contact Reichenberg atneilreichenberg@yahoo.com. #block-googletagmanagerfooter .field { padding-bottom:0 !important; } 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. Ensure that all factors are analyzed without assigning a predetermined weight to a particular factor or set of factors. Require automatic future increases to the threshold. As with the overtime rule, the final independent contractor rule would take effect no sooner than 60 days after it is published in the Federal Register. Neil Reichenberg is the former executive director of the International Public Management Association for Human Resources. The yet-to-be proposed rule is expected to be unveiled in May 2023. 2023 Locke Lord LLP | Attorney Advertising, Employee Benefits & Executive Compensation, Environmental, Social and Governance (ESG). .manual-search ul.usa-list li {max-width:100%;} The background: The overtime rule, part of the . The DHS has appealed the district court's decision. The May goal represents a second delay. $("span.current-site").html("SHRM MENA "); 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. 2022. .paragraph--type--html-table .ts-cell-content {max-width: 100%;} 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. 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 In September 2019, the Trump DOL issued a new overtime rule, which took effect on January 1, 2020, raising the weekly minimum salary for EAP exemptions from $455 per week ($23,660 per year . 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 agency already has missed its target for the overtime rule twice. ACTION: Notice of proposed rulemaking; request for comments. Federal government websites often end in .gov or .mil. Therefore, do not send or include any information in your email that you consider to be confidential or privileged. SHRM Employment Law & Compliance Conference, Proposed Overtime Rule Now Projected to Come Out in Fall, New OSHA Guidance Clarifies Return-to-Work Expectations, Trump Suspends New H-1B Visas Through 2020, Faking COVID-19 Illness Can Have Serious Consequences, White House Takes Action Against Migrant Child Labor, How to Handle Overtime, Meal Break and Other Wage and Hour Crises. Need help with a specific HR issue like coronavirus or FLSA? Your session has expired. The salary basis threshold was increased in 2019 from $23,660/year to $35,568/year. Once anticipated in the spring, the proposed rule will recommend how to implement the exemption of bona fide executive, administrative and professional employees from the Fair Labor . Subscribe to HR Dive for top news, trends & analysis, The free newsletter covering the top industry headlines, Talent Attraction and Retention for 2023: Finance and HR leaders should look to on-demand pay,, The Omnia Group Releases 2023 Annual Talent Trends Report, TimeForge Integrates with Careerjet to Give Businesses Access to Thousands of Job Seekers, Talkspace Launches First-of-its-Kind Portal Dedicated to Employee Mental Health Resources, By signing up to receive our newsletter, you agree to our. .cd-main-content p, blockquote {margin-bottom:1em;} On Jan. 4, the Biden administration released its long-awaitedFall 2022 Unified Agenda of Regulatory and Deregulatory Actions. The site is secure. 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. The .gov means its official. Matt Popovich. Averaging of hours over two or more weeks is not permitted. Copyright 2023 LexisNexis Risk Solutions Group. That final rule took effect on January 1, 2020. The U.S. Department of Labor has rescheduled the release of its proposed salary basis threshold rule for May. 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 the IRS, the standard mileage rate for business use is based on an annual study of the fixed and variable costs of operating an automobile. The division encourages all stakeholders to participate in the regulatory process. Sign up for our newsletter and get the latest to your inbox. Review the laws and regulations that govern overtime in the United States. The Department of Labor remains committed to addressing the issue of misclassification.. .usa-footer .container {max-width:1440px!important;} .agency-blurb-container .agency_blurb.background--light { padding: 0; } $('.container-footer').first().hide(); } Track your regular work hours, break time, and overtime hours. 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. CUPA-HR sent a letter to USCIS Director Ur M. Jaddou asking for this additional extension. 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.".