Your top performers will contribute less and project quality will likely be affected. 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. As a non-exempt employee, Hewitt would be entitled to an additional 0.5 times the regular rate of pay for each overtime hour he worked, for an additional $1,007.16 per week ($45.78 x 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. These will be straightforward areas to target since they dont tend to have a direct impact on your companys mission. Rather than simply regurgitating the day's headlines, Resourceful Finance Pro delivers actionable insights, helping Finance execs understand what Finance trends mean to their business. The DOL has considered modifying the duties test in the past but has refrained from doing so. For more information, visit dol.gov/agencies/ofccp/religious-exemption. Labor laws around overtime compensation for salaried employees remain a heated topic of political debate in the U.S. The DOL plans to make the changes effective in 2023. The entire process could take up to a year or more to roll out. WebThe federal overtime provisions are contained in the Fair Labor Standards Act (FLSA). The October timeframe is not set in stone, and it is possible that the DOL may postpone the date further. It made a 40-hour workweek the norm. We carefully considered the comments and decided to finalize the rescission. In November 2021, OFCCP proposed rescinding the rule. Congressional Democrats earlier this year called for a substantial increase, to more than $82,000. At first glance, this may sound like a straightforward way to mitigate worker exploitation. BIPA ALERT: Illinois Supreme Court Opens the Door to Punitive, President Biden to Nominate Julie Su as New Secretary of Labor, The European Unitary Patent: Why Retailers Should Care, New York City Employers Prepare for AI Bias Law [VIDEO], Administration's WOTUS Rule Muddies Jurisdictional Waters. 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. The choice of a lawyer or other professional is an important decision and should not be based solely upon advertisements. Jessica Looman is the acting administrator for the U.S. Department of Labors Wage and Hour Division. The next generation search tool for finding the right lawyer for you. Recent FTC Enforcement Action Merits Cyber Insurance Coverage Review, Two Ways to Redefine & Achieve CRM Success. Knowing accurate project costs and how many hours you're dedicating to projects can help you mitigate any risk of overtime. Labor Rights. The Hewitt court held that a well-compensated employee paid a daily rate, rather than a fixed weekly or monthly salary, was not exempt from the FLSA and its rules regarding overtime pay. By: Jenny R. Yang February 28, 2023. Keep a step ahead of your key competitors and benchmark against them. 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. Also, check out our search tool, Workers Owed Wages if you think you are owed back wages. She focuses her practice on immigration and agriculture. These rule changes will not happen overnight if indeed they are imminent. The employees primary duty must be to perform work requiring advanced knowledge in a field of science or learning that is customarily acquired by prolonged, specialized, intellectual instruction and study.. Any cap increase would mean that a whole new group of qualified salaried employees would become newly entitled to receive overtime compensation. A former Wage and Hour Division administrator updated attendees of SHRMs Employment Law & Compliance Conference about the salary threshold for white-collar Please contact [emailprotected]. 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. As we previously reported in our New Years Update for 2022, the US Department of Labor (DOLs) regulatory agenda included proposed rulemaking on the Fair Labor Standards Act (FLSA) overtime rules by April 2022. If so, calculate their break even points and get a sense of where your cutoffs might be. Copyright 2023 Morgan, Lewis & Bockius LLP. Since 2002, Executive Order 11246 has contained a religious exemption, based on the religious exemption in Title VII of the Civil Rights Act of 1964, which permits federal contractors that are qualifying religious organizations to hire individuals of a particular religion. Let that sink in for a moment. The DOL is feeling pressure to raise the salary rate to the level that the Obama administration tried to establish, or $47,476. 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. 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. 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. 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 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. However, the Trump DOL did not adopt the automatic cost of living (COLA) increase. 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. 1-866-487-2365 The. 220 Skip to content DirectoryGlobal directory Tax and accounting SHRM boils down the three white-collar exemption duties tests quite neatly. Your browser does not allow automatic adding of bookmarks. Because employers must comply with federal rules, many are getting creative in desperate attempts to preserve their profit margins. The acting administrator of the DOL's Wage and Hour Division recently announced her intention to issue a new independent contractor rule, but she did not lay out any particular timeline. Questions? Finally, the most problematic portion of the AEWR rule is that, if there are multiple activities included in the description that fall outside the agricultural Standard of Occupation (SOC) codes, DOL will require use of the highest applicable wage. Rachmany says hed consider hiring freelancers and independent contractors just to avoid paying overtime during busy seasons. Overtime laws require employers to pay employees a wage rate that is greater than their regular rate for hours worked beyond a designated threshold. The typical threshold set by most overtime laws, whether state or federal law, is forty (40) hour per workweek. In other words, an employer is required to pay an employee an overtime rate for all The new rules are likely to recommend increased salary level thresholds for white collar exemptions to the overtime rules already in place. As we previously reported in ourNew Years Update for 2022, the US Department of Labor (DOLs) regulatory agenda included proposed rulemakingon the Fair Labor Standards Act (FLSA)overtime rules by April 2022. Then the final rule would need to take effect no sooner than 60 days after it is published in the Federal Register, assuming it is classified as a major rule. In addition, a duties test is used to determine whether employees earning more than the salary threshold can be classified as exempt from overtime. On balance, however, it increased confusion and uncertainty about the religious exemption because it diverged from the approach to the Title VII religious exemption taken by courts, the Equal Employment Opportunity Commission, and the Department of Justice, as well as from OFCCPs past practice. The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely. Importantly, it also strengthened families by providing opportunities to spend valuable time together. Helix Energy Solutions paid Michael Hewitt a daily rate ranging from $963 to $1342 per day. II. Wednesday, March 1, 2023. 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. Copyright 2023 LexisNexis Risk Solutions Group. After a new overtime rule is proposed, the public will have at least 30 days to comment on it before the DOL can issue a final rule. The DOL had asked the district courtwhich has already issued a By: Jenny R. Yang February 28, 2023. This Week in 340B: February 21 27, 2023. 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. Rules Embezzler Lacked Standing Under ERISA to Challenge How Company Spends Her Restitution, 4th Circuit Allows FMLA Claims to Proceed Based on Workers Leave Notices Sent Via Facebook Messenger, Pandemic Response Return to Work Checklist (Office), How-to guide: Overview of US employment law (USA), How-to guide: How to draft an employment contract (USA). Tell us how. Enter your username and password below to log in. It is likely that the forthcoming DOL regulations will set a salary threshold closer to that of the 2016 proposal. Youll have little time to get in compliance the rules are expected this April. 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. Words With Friends, Part 1: Insurance Requirements and Contracts, Legislator Proposes To Expand CFL To Encompass "Commercial CERCLA PFAS Scope May Broaden To Many More PFAS, AI Avatar App is the Latest Target of BIPA Class Action Litigation. HR Works, Inc., headquartered in Upsate New York, is a human resource management outsourcing and consulting firm serving clients throughout the United States. 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). Position your Business for Success. If you require legal or professional advice, kindly contact an attorney or other suitable professional advisor. Employment law experts are suggesting new overtime rules might be handed down by the US Department of Labor within the next month or so. EEOC Reminds Employers How to Handle Applicants and Employees With UK's PRA Sets Regulatory Priorities for International Banks, FDA Asked to Allow Healthy Claims on Coffee. Waters of the United States and Winston Churchill. 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. If the expected changes occur, boosting the salary threshold will likely mean a whole new segment of workers are entitled to overtime pay. Labor Board Flip-Flops Again on Severance FRB Governor Bowman Speaks on Bank Regulation and Supervision. May sound like a straightforward way to mitigate worker exploitation a Wage rate that is greater than their regular for! Think you are connecting to the official website and that any information provide. Than their regular rate for hours worked beyond a designated threshold down the white-collar! 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