We enforce three equal employment opportunity authorities: Executive Order 11246, Section 503 of the Rehabilitation Act of 1973, and the Vietnam Era Veterans Readjustment Assistance Act of 1974. Last fall, the DOL said it would propose new overtime rules - which are expected to raise the minimum salary for most overtime-exempt employees and possibly update the duties tests as well - in April. Rachmany sums it up nicely, preparing for the worst is an essential factor in achieving success when the future is so unpredictable. View our privacy policy, privacy policy (California), cookie policy, supported browsers and access your cookie settings. She has developed a strong background in the area of worker verification issues and managed clients through internal and agency Form I-9 audits, USICE compliance investigations and civil criminal charges. Web page addresses and email addresses turn into links automatically. What do we know now? The FLSA also contains a special rule for highly compensated employees who are paid total annual compensation of $107,432 or more. Currently, FLSA requires employers, including nonprofits, to pay their employees at least $7.25 per hour and to pay employees one-and-one-half time their regular rate of pay when they work more than 40 hours in a workweek. Any legal analysis, legislative updates or other content and links should not be construed as legal or professional advice or a substitute for such advice. XpertHR is part of the LexisNexis Risk Solutions Group portfolio of brands. Under the current overtime rule, the maximum annualized salary rate is $35,568. The employee must customarily and regularly direct the work of at least two employees and have the authority to hire or fire workers (or the employees suggestions and recommendations as to hiring, firing or changing the status of other employees must be given particular weight). The. The U.S. Department of Labor (DOL) recently published its spring regulatory agenda containing a tentative date of October 2022 for a proposed overtime rule. E.g. The New York City Council Sets its Sights on Non-Profit Housing DOJ Announces New Voluntary Self-Disclosure Policy for U.S. Attorney Supreme Court: Salary, Not Daily Pay, Required for FLSA Overtime Time Is Money: A Quick Wage-Hour Tip on the Tip Credit, EDPB issues its Opinion on the EU-U.S. Data Privacy Framework, Hunton Andrews Kurths Privacy and Cybersecurity. The site is secure. It made a 40-hour workweek the norm. 200 Constitution AveNW Contact nextSource today to speak with an expert. Federally Recognized Holidays, Employer Considerations for DOLs New AEWR Rule. An official website of the United States government. www.dol.gov. Labor Board Flip-Flops Again on Severance FRB Governor Bowman Speaks on Bank Regulation and Supervision. Lines and paragraphs break automatically. Draft the To Each Their Own: Agency Must Consider Experience of Each Partner in CMS Updates List of Telehealth Services for CY 2023, What You Need to Know About the New Tariffs on Imports from Russia. Being paid on a salary basis means an employee regularly receives a predetermined amount of compensation each pay period on a weekly, or less frequent, basis. They often received no extra pay for their toil and sacrifice. The DOL plans to make the changes effective in 2023. How can businesses prepare? HR Works will continue to monitor this topic an provide updates as more information becomes available. Lost your password? Today, the Office of Federal Contract Compliance Programs (OFCCP) acted to protect workers from Its critical to keep them healthy. Thats when well have an idea of just how many more employees will be overtime eligible. One way to do this would be phase in a large increase in the salary threshold over several years. Executive exemption. First Offshore Wind Energy Lease Sales in the Gulf of Mexico, Telephone and Texting Compliance News: Litigation Update February 2023. Follow the division on Twitter at @WHD_DOL. For more information, please visit OFCCPs website. These roles are typically based on a yearly salary whereas The 2020 rule purported to clarify the scope and application of the Executive Order 11246 religious exemption. Over the years, the nations workers and employers have recognized the importance of maintaining a balance between work and homelife. Because employers must comply with federal rules, many are getting creative in desperate attempts to preserve their profit margins. Will the U.S. Supreme Court Make Marijuana Legal? The FLSA (Fair Labor Standards Act) employment law requires all employers to give eligible (or non-exempt) workers at least the minimum wage for hours worked. The U.S. Department of Labor (DOL) announced last week that it plans to release new proposed regulations on the salary threshold under the Fair Labor Standards Act (FLSA) in October. Small farm workers and certain kinds of agricultural employees;Some types of newspaper jobs, carriers, or vendors;Any worker who must sleep at their workplace (e.g., overnight babysitters or live-in healthcare workers);Public officials;Employees of motion picture theaters;Volunteers (usually applies more so to non-profit organizations);More items Employment law experts are suggesting new overtime rules might be handed down by the US Department of Labor within the next month or so. These will be straightforward areas to target since they dont tend to have a direct impact on your companys mission. Overtime Laws Safeguard the Well-being of Workers and Their Families. Would a change to the Part 541 overtime rules affect your life? From April 27 through June 3, 2022, were hosting virtual listening sessions across the country, and we invite all stakeholders workers, employers, advocates and more to share their thoughts. If so, consolidate any programs and processes that you can. This field is for validation purposes and should be left unchanged. for 1+3, enter 4. In her immigration practice, she handles nonimmigrant petitions, both employment- and family-based permanent residence applications, expatriation and foreign visa issues along with worker verification issues, Form I-9 audits, USICE compliance investigations and civil and criminal charges. Federal government websites often end in .gov or .mil. The NLR does not wish, nor does it intend, to solicit the business of anyone or to refer anyone to an attorney or other professional. If employees do not meet both the salary threshold and duties test, then they must be classified as non-exempt. First and foremost, the DOL has long planned to revise its overtime regulations under the FLSA by increasing the minimum salary requirement, with new rules expected by October 2022 that have yet to be issued. He may just be out of luck. EC Appeals European General Court Decision Annulling the Harmonized Weekly Bankruptcy Alert February 28, 2023. Summary of Proposed Changes to the AEWR Methodology and the Changes Adopted in This Final Rule When expanded it provides a list of search options that will switch the search inputs to match the current selection. Turn it on to take full advantage of this site, then refresh the page. Of all the millions of dollars in back wages weve recovered for workers under the Fair Labor Standards Act, 84% are the result of overtime violations. All rights reserved. And without an idea of just how high the new number will go, you might feel like there isnt much that can be done. Following much back-and-forth at the end of the Obama administration, the current FLSA overtime threshold sits just above $35,000 per year, meaning employees who make less are entitled to minimum wage and overtime. Review your content's performance and reach. The higher wages for the separate contracts would also apply to corresponding employment. WebThis button displays the currently selected search type. Labor laws around overtime compensation for salaried employees remain a heated topic of political debate in the U.S. By continuing to use this site, you agree to the use of cookies as described in our Cookie Policy. The DOL may postpone the date even further, as it often misses its own rulemaking targets. An essential part of that review includes a series of listening sessions to solicit input, information and insight from workers and their advocates as well as from the business community. Employers should prepare now to review their workforce for exempt/non-exempt status to ensure they are compliant with the new overtime rule before the effective date is launched. The 2020 rule also weakened nondiscrimination protections for employees of federal contractors, objectives of Executive Order 11246 to ensure economy and efficiency in federal contracting and to promote equal employment opportunity. Provide guidance explaining how common nonprofit jobs that are found in other sectors like fundraisers, volunteer coordinators, and social service program staff fit into the administrative, executive, and professional duties tests. Conspicuously absent from the DOL's agenda was a new rule for determining whether a worker is an employee or an independent contractor under the FLSA. Copyright 2023 ClickTime. US Executive Branch Update February 28, 2023. Is it better to proactively raise their annual salaries or wait and see how the overtime costs roll out? In any event, employers would have enough time to prepare for any new or updated requirements. USA August 24 2022. As a result, employees who make less than $684 per week are eligible for overtime pay at a rate of one and one-half times their regular rate, for any hours worked over forty during a work week. Prior to the enactment of the Fair Labor Standards Act, six-day and 60-hour workweeks were common. There is some debate on whether or not they will also reinstate the automatic COLA increases that had been in place during the Obama administration. With the rescission of the rule, we are returning to a longstanding policy in place for more than 17 years, under the administrations of both George W. Bush and Barack Obama, to determine the applicability of the religious exemption by applying established case law and principles to the facts and circumstances of particular cases. Strategies for Protecting Standard Essential Department Of Justice Introduces Voluntary Self-Disclosure Policy For Minnesota Supreme Court Clarifies State Law Standards for Severe or Gold Dome Report Legislative Day 25 (2023). The U.S. Department of Labors Wage and Hour Division is hosting a series of listening sessions to hear the publics feedback on the current overtime regulations for white-collar workers and the potential impact from any changes to those regulations and we want to hear from you. Litigation Setback for Employers Under Illinois Biometric Information Senate Committee Holds Hearing on Future of Low Carbon Transportation North Carolina Senate Passes Compassionate Care Act at Exactly 4:20 States and Feds Signal Big Changes to Telehealth Prescribing. Before sharing sensitive information, make sure youre on a federal government site. WebThis button displays the currently selected search type. 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). 1-866-487-2365 Performance Rule Requires Disclosure of Relationship Tech Takeaways: SCOTUS Weighs in on Pivotal Tech Cases. The. We use cookies to make interactions with ClickTime easier and to improve communications. 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 Member Assistance: Ext. Tell us how. Some states have laws and ethical rules regarding solicitation and advertisement practices by attorneys and/or other professionals. As a result, Hewitts regular rate of pay is $45.78 per hour. Author: Michael Cardman, XpertHR Legal Editor. But this is when a little scenario planning can go a long way. Some have suggested that the DOL amend the duties test to align with the California standards for overtime exemptions. An employee must make more than the maximum annualized salary to meet FLSAs overtime exemption, but that employee also must meet the duties. Companies that continue to thrive once the new rules are implemented will be those who take an unflinching look at their costs, budgets, and workforce. Any job orders filed on or before March 29, 2023 will not be subject to this rule. 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 Hewitt earned over $200,000 annually. If you have 10 workers who each work 40 hours per week, youll have about 1,600 hours per month to work with. Web page addresses and email addresses turn into links automatically. Changing Rules Re Overtime Pay posted by test LegalEase. Please contact [emailprotected]. This requirement created a monetary disincentive for worker exploitation. Employers should now prepare to review their workforce for exempt/non-exempt status to ensure they comply with the new With the continuing expansion of contingent workforce activity, it becomes more and more common for companies to engage contingents in managerial roles and even in some cases executive positions. If you would like to learn how Lexology can drive your content marketing strategy forward, please email [emailprotected]. 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. Give nonprofits (and other employers) adequate time to make operational and budget changes that would be necessitated by a large increase to the salary threshold. The DOL is feeling pressure to raise the salary rate to the level that the Obama administration tried to establish, or $47,476. But the problem for employers is that when overtime costs skyrocket, it decimates profit margins. The entire process could take up to a year or more to roll out. 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). Proposed Overtime Rule Scheduled Society for Human Resource Management (SHRM) analysts note that employers should also refocus on the duties tests section of the DOLs overtime rules noting the tendency of employers to over-emphasize the salary requirement when determining eligibility for exemption. Licenses for Exports to Are You Ready for the UPC? OFCCP is rescinding the entire rule to return to the agencys prior approach of aligning the Executive Order 11246 religious exemption with Title VII case law as applied to the facts and circumstances of each case. SHRM boils down the three white-collar exemption duties tests quite neatly. Get actionable tips for success at every stage of your time tracking journey. Once you crunch the numbers, you may discover that paying for overtime is more expensive than hiring additional salaried employees. Have questions about this? The feds last overhauled the overtime rules in January 2020 to: But those most recent rules also set up for a regular review and updating of these thresholds. By: Jenny R. Yang February 28, 2023. Resourceful Finance Pro, part of the SuccessFuel Network, provides the latest Finance and employment law news for Finance professionals in the trenches of small-to-medium-sized businesses. When the new DOL rules eventually hit, organizations who have not sufficiently prepared will be at risk of financial instability. Statement in compliance with Texas Rules of Professional Conduct. 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