Notably absent from the spring regulatory agenda is an entry for an FLSA independent-contractor rulemaking, given that a recent blog post on the DOL's website stated that such a proposal is in the works, Plunkett said. Biden's DOL may seek to increase the threshold even greater than the 2016 proposal under Obama. All rights reserved. The integral factor, which considers whether the work is integral to the employers business, is also included. Supreme Court: Salary, Not Daily Pay, Required for FLSA Overtime Exemptions. Washington, DC 202101-866-4-US-WAGE1-866-487-9243, Administrator Interpretations, Opinion and Ruling Letters, Resources for State and Local Governments. 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. [CDATA[/* >*/. #views-exposed-form-manual-cloud-search-manual-cloud-search-results .form-actions{display:block;flex:1;} #tfa-entry-form .form-actions {justify-content:flex-start;} #node-agency-pages-layout-builder-form .form-actions {display:block;} #tfa-entry-form input {height:55px;} The DOL's new overtime rule is expected to raise the minimum salary for most overtime-exempt employees and . But they delayed it and are now targeting October 2022 as the release date. The site is secure. The May goal represents a second delay. Minimum Wages Are On the Rise in Several States. 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. }. p.usa-alert__text {margin-bottom:0!important;} 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 had previously planned to release the proposed rule in October 2022. 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. 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.. .manual-search ul.usa-list li {max-width:100%;} More than 54,000 people submitted comments on the rule. Starting in June 2020, employees were required to return to work onsite full-time. Most recently, DHS announced an additional extension of the Form I-9 flexibility guidance through October 31, 2022. Shortly thereafter, President Donald Trump took office and DOL abandoned its defense of the rule. [Mr. Fendly's statement may be found in the appendix.] Protecting vulnerable workers and persons from underserved communities from employment discrimination. The salary basis threshold was increased in 2019 from $23,660/year to $35,568/year. @media only screen and (min-width: 0px){.agency-nav-container.nav-is-open {overflow-y: unset!important;}} According to DOL, the 40th percentile equated to $921 per week in 2013 and will be about $970 when the rule is . 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.. var currentLocation = getCookie("SHRM_Core_CurrentUser_LocationID"); A Davis-Bacon Act final rule is now scheduled for December. 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. If such an increase is proposed, it will impact millions of workers and almost certainly meet resistance in federal courts from private employers and business groups. proposed changes. Learn more by reading fact sheets that cover a variety of overtime topics. Any information you send to Locke Lord LLP through this website is on a non-confidential and non-privileged basis. The DOL's December agenda appears to be the first real step in that direction, announcing it will propose an update in . However, Schreter said, "I don't think they're going to give up on that.". The new 2022 rule largely returns to the "economic realities" test. 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. The DOL noted in its agenda that the Occupational Safety and Health Administration (OSHA) has already issued an emergency temporary standard to address the danger of COVID-19 in health care workplaces. By continuing to use our site or by closing this banner without changing your cookie settings, you agree to our use of cookies. 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. Despite relying on the labor of millions of workers to provide their services, platform companies have established a business model on the premise that they employ no one. The two areas of anticipated revision are to the salary level and duties tests for an employee to be exempt from overtime pay. The United States Department of Labor (DOL) is expected to propose a new salary threshold for various overtime exemptions under the Fair Labor Standards Act (FLSA). The FTC noted that the proposed rule would make it illegal for an employer to: EEOC Settles COVID Discrimination Lawsuit The Equal Employment Opportunity Commission (EEOC) announced that it settled a lawsuit alleging disability discrimination in violation of the Americans with Disabilities Act (ADA) by an employer who denied an employees reasonable request to work from home and subsequently fired her. OSHA aims to complete a final rule by September. 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. March 21, 2022. .usa-footer .grid-container {padding-left: 30px!important;} div#block-eoguidanceviewheader .dol-alerts p {padding: 0;margin: 0;} The DOL promised to consider this feedback and may make changes to its draft rule before publishing a final version. ACTION: Notice of proposed rulemaking; request for comments. Our goal is to ensure that all New York workers are being paid the proper wages, do not have their right to a meal period or day of rest violated, and to uphold New York State Labor Laws. 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. Please purchase a SHRM membership before saving bookmarks. The deadline to announce such changes was initially set for April 2022 but has since seen several delays. The yet-to-be proposed rule is expected to be unveiled in May 2023. While details of the Democratic-majority NLRBs NPRM on joint employer status are unknown, we would expect them to revise the current standard to reflect the Obama-era decision. NAM Vice President of Infrastructure, Innovation and Human Resources Policy Robyn Boerstling joined us to explain what's happening. The proposed rule sent stocks for gig companies like DoorDash, Lyft and Uber down. Reposted with permission. Federal government websites often end in .gov or .mil. 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. 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). 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 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. You may be trying to access this site from a secured browser on the server. 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 $921/week threshold would make more than 4.2 million workers ineligible for a white-collar exemption and eligible for overtime pay. The .gov means its official. With the issuance of its spring regulatory agenda on June 21, the U.S. Department of Labor (DOL) announced that its proposed overtime rule is now tentatively slated to be released in October. We anticipate the proposed new level will be higher. }); if($('.container-footer').length > 1){ Trumps DOL then revisited the threshold, agreeing that an increase was needed, but one far below the rate Democrats had planned. Once proposed, stakeholders will have an opportunity to comment before the agency finalizes its rule. While it is unclear whether the December NPRM will include the blacklisting language again, the abstract of the re-proposal states that the new proposed rule would be responsive to the comments received on our February 2022 proposal.. 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