Department of Labor Intends to Extend Overtime Pay Requirements to More Workers. Now, the DOL is considering a new overtime rule and the proposal is expected to hit this coming fall. Require automatic future increases to the threshold. In a case closely watched by the oil and gas industry, the United States Supreme Court ruled in Helix Entergy Solutions Group, Inc. v. Hewitt that an oil rig worker earning more than $200,000 a year was misclassified as exempt by his employer, in violation of the Fair Labor Standards Act (FLSA), and is entitled to unpaid overtime wages. On February 22, 2023, the final farm labor overtime regulations were adopted, codifying Commissioner Reardon's order adopting the recommendation of the Farm Laborers Wage Board to lower the current 60-hour threshold for overtime pay to 40 hours per week by January 1, 2032, allowing 10 years to phase in the new threshold. The proposed rule will advise businesses on implementing the exemption of bona fide executive, administrative, and professional employees from the minimum wage and overtime requirements of the Fair Labor Standards Act (FLSA). Although the DOL will almost certainly grant employers several months of lead-up time before implementing the new threshold, understanding the potential impact of a dramatic increase now will help employers adjust in the future. p.usa-alert__text {margin-bottom:0!important;} From March 2020 through June 2020, employees were required to work remotely four days per week due to the COVID-19 pandemic. [CDATA[/* > -1) { Gallagher supports organizations with comprehensive solutions to include exemption review, compensation and classification structures, enhanced management of ongoing joint-employer challenges and implementation strategies. Please confirm that you want to proceed with deleting bookmark. DOL addressed the topic again in 2019 and enacted changes on January 1, 2020. 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-blurb-container .agency_blurb.background--light { padding: 0; } The salary basis threshold was increased in 2019 from $23,660/year to $35,568/year. DOL's Wage and Hour Division plans to develop and release a notice of proposed rulemaking . You have successfully saved this page as a bookmark. The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely. An employee's workweek is a fixed and regularly recurring period of 168 hours seven consecutive 24-hour periods. 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 . 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;}'; Assist with the proper classification of employees and independent contractors under the FLSA. Washington, DC 202101-866-4-US-WAGE1-866-487-9243, Administrator Interpretations, Opinion and Ruling Letters, Resources for State and Local Governments. A Davis-Bacon Act final rule is now scheduled for December. Many of these pending and future rulemakings outlined above are expected to face scrutiny via congressional oversight in the newly Republican-controlled House of Representatives. 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 . In 2016, the Labor Department under President Obama had proposed a salary basis threshold of $47,476/year, which was invalidated by a District Court and the lawsuit was withdrawn by the Trump Administration. 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). The new proposal is likely to be issued in the near future and could be issued as early as this month. There is no limit in the Act on the number of hours employees aged 16 and older may work in any workweek. Shortly thereafter, President Donald Trump took office and DOL abandoned its defense of the rule. 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. Rescind the 2021 Independent Contractor Rule. .table thead th {background-color:#f1f1f1;color:#222;} .cd-main-content p, blockquote {margin-bottom:1em;} 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. 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.". 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. var currentLocation = getCookie("SHRM_Core_CurrentUser_LocationID"); The most common exemption categories are known as the white collar exemptions: executive, administrative and professional. Wage and Hour Division Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales and Computer Employees, According to the Regulatory Agenda, the Department of Labor (DOL)s Wage and Hour Division (WHD) is now planning to release a Notice of Proposed Rulemaking (NPRM) to address changes to the Fair Labor Standards Act (FLSA)s overtime pay requirements in October 2022. The proposed rule sent stocks for gig companies like DoorDash, Lyft and Uber down. Must be a Paid Member or a Free Trial Member to Access Content. In particular, the House Education and Labor Committee (expected to be renamed the "House Education and Workforce Committee" by the new Republican majority) is expected to pursue aggressive oversight of the DOL and the NLRB. 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. We anticipate the proposed new level will be higher. Start Preamble AGENCY: Wage and Hour Division, Department of Labor. .Agency-Blurb-Container.agency_blurb.background -- light { padding: 0 ; } the salary basis threshold from $ to... Confirm that you are connecting to the agenda says they will have proposed rule is now scheduled for.! 2022 2:45pm tightens up the administrative exemption sheets that cover a variety of overtime topics addressing the of... 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