Investing in time tracking software will provide you with the transparency you need to understand your operating costs at a glance. An official website of the United States government. Questions? Follow the division on Twitter at @WHD_DOL. For more information, please visit OFCCPs website. At present, white-collar employees executives, administrative and professional employees are exempt from overtime under the FLSA and Statement in compliance with Texas Rules of Professional Conduct. The choice of a lawyer or other professional is an important decision and should not be based solely upon advertisements. www.dol.gov. Breaking: Nationwide Injunction Issued to Block New FLSA Overtime Rule. 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. Just 10 days before the implementation date, a federal judge in Texas put the brakes on the Department of Labors (DOLs) new federal overtime rule, which would have doubled the Fair Labor Standards Acts (FLSAs) salary threshold for exemption from overtime pay. Changes are imminent and it pays to stay ahead of the curve. 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. Liz is a member of the Corporate Practice Team. Raleigh, NC 27624-8475 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. 1-866-487-2365 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.. Register to participate in one of these listening sessions. Jessica Looman is the acting administrator for the U.S. Department of Labors Wage and Hour Division. These will be straightforward areas to target since they dont tend to have a direct impact on your companys mission. We received 761 unique comments and 4,464 form letter comments. But the DOL's latest regulatory agenda changed the projected date from April to October without explanation. Would a change to the Part 541 overtime rules affect your life? The FLSA also contains a special rule for highly compensated employees who are paid total annual compensation of $107,432 or more. This Week in 340B: February 21 27, 2023. Also, whether the game ends up in overtime at 34-34 or 3-3 will be a factor in deciding whether the team that wins the toss should choose to kick or receive. The National Law Review - National Law Forum LLC 3 Grant Square #141 Hinsdale, IL 60521 Telephone (708) 357-3317 ortollfree(877)357-3317. If the expected changes occur, boosting the salary threshold will likely mean a whole new segment of workers are entitled to overtime pay. Web page addresses and email addresses turn into links automatically. 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. This field is for validation purposes and should be left unchanged. Still, many employers run afoul of overtime laws. Please enter your username or email address. If you plan ahead, youll be aptly positioned to meet federal standards, stay compliant, and still remain profitable. The Center also will provide comprehensive analysis of the regulations and compliance options for North Carolina nonprofits (similar to what we provided in 2016 and 2019). The materials and information included in the XpertHR service are provided for reference purposes only. Federal contractors are also prohibited from discriminating against applicants or employees because they inquire about, discuss, or disclose their compensation or that of others, subject to certain limitations. Before sharing sensitive information, make sure youre on a federal government site. 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. 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. Expect an increase in poor communication, inaccurate project planning, and failed implementation strategies. 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 Some have suggested that the DOL amend the duties test to align with the California standards for overtime exemptions. Exempt computer employees may be paid at least $684 on a salary basis or on an hourly basis at a rate not less than $27.63 an hour. The DOL is feeling pressure to raise the salary rate to the level that the Obama administration tried to establish, or $47,476. The new rules are likely At first glance, this may sound like a straightforward way to mitigate worker exploitation. 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. June 27, 2022. She has experience in several areas of agricultural law including labor and employment matters, H-2A labor, taxation, succession planning and general business matters. Good News for American Businesses: H1-B Denial Rates Plummet Under USCIS Extends Comment Period for Proposed Fee Increases, OFCCP Rescinds Trump-Era Religious Exemption Rule. Reporting that 1.3 million workers will now become eligible for overtime pay, the Department of Labor (DOL) has released its final rule to update the exemption Directions. 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. Employers should consider separate contracts for driving/transportation/supervision activities to avoid the higher wage applying to all H-2A worker activities. To qualify as a white collar exempt employee, workers must perform certain tasks, be salaried, and stay under a designated salary cap. These regulatory changes are consistent with the Secretary of Labor's (Secretary) statutory responsibility to certify that the employment of H-2A workers will not adversely affect the wages and working conditions of 4 Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales and Computer Second, Hewitt could open the door for a larger-scale challenge to the DOLs regulations. The DOL has considered modifying the duties test in the past but has refrained from doing so. Solve this simple math problem and enter the result. But the good news is that time is on your side. The feds last overhauled the overtime rules in January 2020 to: $35,568 a year, or $684 per week, for the standard salary level, and; $107,432 per year to qualify as It can also help your finance team prepare for the inevitable onslaught of questions employees will have once they hear the rules are changing again. Time tracking built for accurate project accounting. A former Wage and Hour Division administrator updated attendees of SHRMs Employment Law & Compliance Conference about the salary threshold for white-collar 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. By continuing to use this site, you agree to the use of cookies as described in our Cookie Policy. So when these models are inaccurate, the downstream effects are significant. But this is when a little scenario planning can go a long way. In the Biden administrations fall 2021 regulatory agenda, the Department of Labor (DOL)s Wage and Hour Division (WHD) announced that it planned to release in April 2022 a Notice of Proposed Rulemaking (NPRM) changing criteria for the executive, administrative and professional exemptions from the overtime pay requirements under WebThe U.S. Department of Labor (DOL) plans to propose a new overtime regulation in January 2019, and has issued a notice of its latest regulatory agenda. 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. 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. The October timeframe is not set in stone, and it is possible that the DOL may postpone the date further. Minimum wage and overtime salary threshold requirements for 2022 by state from the Checkpoint Editorial Team. In itsRegulatory Agenda, the DOL said it would propose new overtime rules which are expected to raise the minimum salary for most overtime exempt employees, in addition topossible updates to theduties teststhat correlates to each of the exemptions. Beyond increasing workforces, companies lose strategical, tactical, and operational efficiencies that are the business hallmarks of lean workforces. In addition, the rule allows for the potential of additional wage surveys to be conducted to further increase to the highest of all wages assessed. At the very end of the year the Department of Labor (DOL) made its intention clear to update the salary level requirement of the section 13(a)(1) exemption for executive, administrative, professional, outside sales and computer employees. Under California state law, employees must spend more than 50% of their time performing exempt duties to be classified as exempt from overtime requirements. When expanded it provides a list of search options that will switch the search inputs to match the current selection. The DOL plans to make the changes effective in 2023. Does the Supreme Court have the stomach to tackle the super fun SECs Pay vs. The content and links on www.NatLawReview.comare intended for general information purposes only. They often received no extra pay for their toil and sacrifice. Under certain state laws the following statements may be required on this website and we have included them in order to be in full compliance with these rules. And youll want to do it on two fronts: Having these answers even before the DOL releases the new numbers can position you to act quickly once you have them in hand. 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. A court prevented that increase in the salary rate from going into effect in a 2016 decision, finding that the DOL had exceeded its authority in raising the rate too high. The U.S. Supreme Courts decision this week that a day worker earning $200,000 a year is entitled to overtime pay under the Fair Labor Standards Act (FLSA) turned on how frequently the wages were calculated, not how frequently they were paid out. Have questions about this? 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