The US Department of Labor (DOL) now intends to propose new Fair Labor Standards Act (FLSA) overtime rules this October, six months later than originally planned. If you have a question about overtime pay, salary exemptions, minimum wage or illegal pay deductions, call our toll-free help line confidentially at 866-4-USWAGE (866-487-9243). When expanded it provides a list of search options that will switch the search inputs to match the current selection. Licenses for Exports to Are You Ready for the UPC? Calculate how many workable hours your workforce actually has to deploy. Second, Hewitt could open the door for a larger-scale challenge to the DOLs regulations. Federal and State Legislative Action to Follow in 2022 In mid-April 2021, the US House of Representatives passed the Paycheck Fairness Act which, among other requirements, is designed to address the gender pay gap by placing the burden of proof for job-related pay disparities on employers. Depending on the size of your workforce, you may be forced to pay those overtime rates whereas your competitors may employ a larger workforce, enabling them to strategically spread working hours evenly to stay under the cap. Regardless, employers should have plenty of time to prepare. Become your target audiences go-to resource for todays hottest topics. Hewitt earned over $200,000 annually. For more information, visit dol.gov/agencies/ofccp/religious-exemption. Over the years, the nations workers and employers have recognized the importance of maintaining a balance between work and homelife. It is imperative that federal overtime laws reflect contemporary working conditions and remain vital and effectual in the modern workplace. Try to identify which costs do not match up with your company's growth strategy and target those first. California Assembly Bill Pushes for Womens Designated Restrooms on Mississippi Legislature Takes Up Pass-Through Entity Election FTC Signals Increased Scrutiny of Technology Sector Through Understanding the Corporate Transparency Act and Ensuring Compliance. What is the Executive Order 11246 religious exemption? As part of its pledged commitment to supporting the working class, the Biden administration is expected to push that weekly threshold higher yet. Follow the division on Twitter at @WHD_DOL. : Advanced Marketing Compels Trial on Arbitration in a TCPA Health Plans Gag Clause Attestations Due December 31, 2023. In their letter, these organizations The Trump administration had last implemented new salary level thresholds in 2019, boosting the limit from a modest $455 per week (which is quite low for a white-collar salary in todays dollars) to $684 per week or $35,568 per year. Proposed Nursing Home Disclosure Requirements Target Private Equity Regulation in the Post-FTX Environment: SECs Proposed Enhanced Can a Child Decide Whom They Want to Live With in Michigan? This rule is effective on March 30, 2023. Adjusting for Inflation: How to Increase Your Service Pri How to Increase Timesheet Adoption with ClickTime, How to Increase Your Profit Margins with Excellent Resource Management. 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. In her agriculture work, Liz assists with all matters related to agriculture including corporate, co-op, taxation, H-2A and H-2B immigration, employment, zoning and succession. Web page addresses and email addresses turn into links automatically. WebIf approved, the DOL estimates the new rule would take effect in January 2020, and extend overtime protections to more than 1 million workers who are not currently eligible for overtime. DOL also could make changes to the duties tests for administrative, executive, and professional employees. Under Title VII, courts have overwhelmingly held, consistent with the view of the Department of Justice, that those employers are not permitted to make employment decisions that amount to discrimination based on other protected characteristics, such as race or sex. All Rights Reserved. Begin by taking a long, hard look at your costs. The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely. An official website of the United States government. The Center will share information on how and when your nonprofit can provide timely, substantive written comments to DOL. Let that sink in for a moment. 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. NLR does not answer legal questions nor will we refer you to an attorney or other professional if you request such information from us. It made a 40-hour workweek the norm. Employment law experts are suggesting new overtime rules might be handed down by the US Department of Labor within the next month or so. 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. No attorney-client or confidential relationship is formed by the transmission of information between you and the National Law Review website or any of the law firms, attorneys or other professionals or organizations who include content on the National Law Review website. Please contact [emailprotected]. She has experience in several areas of agricultural law including labor and employment matters, H-2A labor, taxation, succession planning and general business matters. Today, the Office of Federal Contract Compliance Programs (OFCCP) acted to protect workers from discrimination and safeguard principles of religious freedom by rescinding the rule, Implementing Legal Requirements Regarding the Equal Opportunity Clauses Religious Exemption. Published in December 2020 at the end of the Trump administration and effective Jan. 8, 2021, the rule adopted new standards for applying the religious exemption in Executive Order 11246 that were at odds with the weight of legal authority. The employees primary duty also mustinclude the exercise of discretion and independent judgmentwith respect to matters of significance. View our Product Feature Tour. Today, the Office of Federal Contract Compliance Programs (OFCCP) acted to protect workers from discrimination and safeguard principles of religious freedom by rescinding the rule, Implementing Legal Requirements Regarding the Equal Opportunity Clauses Religious Exemption.. Get actionable tips for success at every stage of your time tracking journey. Take these steps now so you can start to predict the potential impact to your business. The new rules are likely to recommend increased salary level thresholds for white collar exemptions to the overtime rules already in place. Federally Recognized Holidays, Employer Considerations for DOLs New AEWR Rule. Its critical to keep them healthy. Your browser does not allow automatic adding of bookmarks. 2023 HR Works, Inc. All Rights Reserved. The rescission preserves the Executive Order 11246 religious exemption and does not change religious entities ability to pursue federal contracts. Privacy Policy, Tel: 919-790-1555 Telephone and Texting Compliance News: Regulatory Update February 2023. Rachmany clarifies, we lose the craftsmanshipif you have someone who can perform above average, you want to give them more challenges. Lines and paragraphs break automatically. When DOL releases its proposed regulations, it will provide an opportunity for public comments. Your top performers will contribute less and project quality will likely be affected. The trick to securing greater T&E compliance, Rooting out folks who dont belong on your health plan: A 6-point dependent audit checklist, 3 costly misconceptions about biz email compromise, Collecting via email: 4 must-make moves in your subject line, 5 Tough-to-spot signs that an invoice is fake, 120 Proven Communications Tips for Todays CFO, Handling Nonexempt Employee Pay: Stay Compliant and Avoid DOL Audits, T&E Best Practices: Complete Guide to Ensure Compliance, Payroll Best Practices: 4 Ways to Save Time and Money, Innovative Communications Strategies: An Email Case Study, A 5-part Framework for Successful Workplace Communications, $35,568 a year, or $684 per week, for the standard salary level, and, $107,432 per year to qualify as overtime exempt as a highly compensated employee.. Today, the Office of Federal Contract Compliance Programs (OFCCP) acted to protect workers from discrimination and safeguard principles of religious freedom by rescinding the rule, Implementing Legal Requirements Regarding the Equal Opportunity Clauses Religious Exemption.. Desperate Times, Desperate Measuring Cups FTC Brings Enforcement Trending in Telehealth: February 20 26, 2023, IRS Sets Deadline For Using 401(K) Plan Forfeitures, How Generative AI Generates Legal Issues in the Games Industry, DOJ Announces New Nationwide Voluntary Self-Disclosure Policy. The. XpertHR is part of the LexisNexis Risk Solutions Group portfolio of brands. 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. 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. Contact Us, North Carolina Center for Nonprofits Many workers, particularly women, brought work home and continued to produce for their employers late into the evening, after feeding their families and tending to the responsibilities of the household. 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. These salary requirements do not apply to outside sales employees, teachers and employees practicing law or medicine. 2023 Spending Bill Includes Extension of Pre-Deductible Coverage for Telehealth Services, Instacart Settles San Diego Worker Misclassification Suit for $46.5M, 2023 Healthcare Trends and Legislative Issues to Watch, 9th Circ. Today, the Office of Federal Contract Compliance Programs (OFCCP) acted to protect workers from In response to these conditions, the Fair Labor Standards Act was passed in 1938, requiring employers to pay premium pay for each hour worked over 40 in a workweek. Friday Development: New Sanctions and Export Controls to Address Weekly IRS Roundup February 20 February 24, 2023, Everything to Know About Unbundled Legal Services. The Contractor-EOR Dilemma: When Is It Time to Substitute Contractors for an EOR? White House Reviewing Proposed Regulations on Reinstated Superfund You Dont Need a Machine to Predict What the FTC Might Do About Is It Compensable? Is it better to proactively raise their annual salaries or wait and see how the overtime costs roll out? Proposed Overtime Rule Expected Soon, HR Today In the News Proposed Overtime Rule Expected Soon, HR Today March 21, 2022 Partner Russell Bruch spoke to HR Today about a proposed US Department of Labor overtime rule expected to lead to increased eligibility for overtime pay. Performance Rule Requires Disclosure of Relationship Tech Takeaways: SCOTUS Weighs in on Pivotal Tech Cases. The best software solutions include workforce planning capabilities. Some industry watchers say the salary figure is still artificially low and should be closer to $90,000 per year or $1,730 per week. Some have suggested that the DOL amend the duties test to align with the California standards for overtime exemptions. Jenny R. Yang is the director of the U.S. Department of Labors Office of Federal Contract Compliance Programs. It is imperative that 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). Directions. The site is secure. In his dissenting opinion, Justice The National Law Review is not a law firm nor is www.NatLawReview.com intended to be a referral service for attorneys and/or other professionals. SHRM boils down the three white-collar exemption duties tests quite neatly. Some states also have duties tests that may vary slightly from the federal standard, requiring multistate employers to ensure that employees are being classified and compensated in accordance with state law, if it provides a greater benefit. Thats when well have an idea of just how many more employees will be overtime eligible. If and when the Department of Labor (DOL) moves forward with increasing salary threshold caps, businesses will need to understand the financial impact to their bottom lines and adjust. After a new overtime rule is proposed, the public will have at least 30 days to comment before the DOL can issue a Final Rule. June 27, 2022. Also, check out our search tool, Workers Owed Wages if you think you are owed back wages. You may need to spend time socializing the idea to workers, but when time worked is consistently entered into a tracking system, it becomes invaluable in your decision-making. The DOL plans to make the changes effective in 2023. An employee must make more than the maximum annualized salary to meet FLSAs overtime exemption, but that employee also must meet the duties. Have questions about this? HR Works provides scalable strategic human resource management and consulting services, including: affirmative action programs; benefits administration outsourcing; HRIS self-service technology; full-time, part-time and interim on-site HR managers; HR audits; legally reviewed employee handbooks and supervisor manuals; talent management and recruiting services; and training of managers and HR professionals. Statement in compliance with Texas Rules of Professional Conduct. Enter your username and password below to log in. If you require legal or professional advice, kindly contact an attorney or other suitable professional advisor. Typically, employees that are considered white-collar workers are exempt from overtime pay as guaranteed by the Fair Labor Standards Act (FLSA.) Many states have their own wage and hourly-rate laws that add an extra layer of complexity to who is and who is not exempt from overtime pay. Want a 10,000-foot view of ClickTime's capabilities? Breaking the Link New Developments on U.S. Although the specifics of the proposed rule remain unknown, many advocates expect several changes to specific aspects of the existing rule. Should the updated rules drive the threshold to anywhere near $1,730 per week, it would make many more contingent workers eligible for overtime pay. And the DOL is making good on that promise at the expense of your companys budgets. None of the details are clear yet, but the impact of the revised rules will likely not be negligible. Some House members are even proposing that the cut off be as high as $80,000 per year and should be automatically reviewed on a regular basis. The proposed overtime rule will be published in May, according to the agenda, which lists the status of anticipated regulatory actions. But this is when a little scenario planning can go a long way. But the problem for employers is that when overtime costs skyrocket, it decimates profit margins. . 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. 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. Under California state law, employees must spend more than 50% of their time performing exempt duties to be classified as exempt from overtime requirements. But the good news is that time is on your side. 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. Wednesday, March 1, 2023. In his dissenting opinion, Justice 200 Constitution AveNW And without an idea of just how high the new number will go, you might feel like there isnt much that can be done. 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