Consider the following: In June, Secretary of Labor Marty Walsh mentioned to the House Education and Labor Committee that the Department of Labor (DOL) was reviewing the current salary threshold for overtime and may update the level based on its findings. However, Section 13(a)(1) and Section 13(a)(17) of the FLSA provide an exemption from both minimum wage and overtime pay for computer systems analysts, computer programmers, software engineers, and other similarly skilled workers in the computer field who meet certain tests regarding their job duties and who are paid at least $684* per week on a salary basis or paid on an hourly basis, at a rate not less than $27.63 an hour. Later that year, DOL included overtime regs on its semiannual regulatory agenda. Determination of an employees primary duty must be based on all the facts in a particular case, with the major emphasis on the character of the employees job as a whole. Notably absent from the spring regulatory agenda is an entry for an FLSA independent-contractor rulemaking, given that a recent blog post on the DOL's website stated that such a proposal is in the works, Plunkett said. Everyone raised their hands, but few attendees supported an increase of the salary threshold above $50,000 per year. 541.601. Employers may not use nondiscretionary bonuses and incentive payments (including commissions) to satisfy any portion of the weekly standard salary level for HCEs. The required total annual compensation of $107,432 or more, which includes at least $684 per week paid on a salary or fee basis, may otherwise consist of commissions, nondiscretionary bonuses and other nondiscretionary compensation earned during a 52-week period, but does not consist of credit for board, lodging, or other facilities, payments for medical or life insurance, or contributions to retirement plans or other fringe benefits. It applies to employees paid total annual compensation of $107,432 or more, and who customarily and regularly perform at least one of the duties for the executive, administrative, or professional exemptions. Buchalter var today = new Date(); var yyyy = today.getFullYear();document.write(yyyy + " "); | Attorney Advertising, Copyright var today = new Date(); var yyyy = today.getFullYear();document.write(yyyy + " "); JD Supra, LLC. An employer must comply with the more restrictive provision when federal and state law differ. 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 Standards Act's (FLSA's) minimum wage and overtime requirements. Federally Recognized Holidays, Employer Considerations for DOLs New AEWR Rule. Subject to a few exceptions, an exempt employee must receive the full salary for any week in which the employee performs any work without regard to the number of days or hours worked.Id. Since the enactment of the Fair Labor Standards Act (FLSA), Oregon employers are expected to pay their employees at an overtime rate for every hour of work done beyond the standard 40 hours per week.A workweek does not need to be from Monday to Friday, but can't be more than 40 hours long. WebUnless specifically exempted, employees covered by the Act must receive overtime pay for hours worked in excess of 40 in a workweek at a rate not less than time and one-half All employers should be aware of the recent decision by the United States Supreme in Helix Energy Solutions Group Inc. v. Hewitt dealing with exemptions under the Fair Labor Standards Act (FLSA). 1){ The DOL and NLRB notices represent the latest update in a years-long debate on both topics, and neither comes as a surprise. The law has helped hundreds of millions of workers in its relatively short history. WebThe FLSA rules Under the Fair Labor Standards Act (FLSA), hourly nonexempt wage earners generally must receive overtime pay for hours worked beyond 40 hours per workweek. Attorney Advertising Notice: Prior results do not guarantee a similar outcome. if(currentUrl.indexOf("/about-shrm/pages/shrm-china.aspx") > -1) { On July 16, 2021, the U.S. District Court for the Southern District of Texas vacated the June 2012 memorandum that created the DACA policy and permanently blocked the DHS from administering the DACA program and from reimplementing DACA without compliance with the Administrative Procedure Act. Build specialized knowledge and expand your influence by earning a SHRM Specialty Credential. The answer was no.. Gain the intel you need now to successfully anticipate and navigate employment laws, stay compliant and mitigate legal risks. Workers who made less than that amount would have been eligible for overtime pay. For example, some states (such as California) have higher minimum salary levels for exempt employees than under the FLSA without considering other amounts paid. While Hewitt received paychecks every two weeks, his paycheck amounted to his daily rate multiplied by the number of days he worked in the pay period. $('.container-footer').first().hide(); So far there have been no changes for 2022. The FLSA requires payment of overtime after 40 hours in a workweek, unless an employee works in a bona fide executive, administrative, or professional capacity, as those terms are defined by DOL regulations. $('.container-footer').first().hide(); .usa-footer .container {max-width:1440px!important;} It had previously been set at $23,660. This argument reflected the common contention that at least some highly paid employees should be considered to be paid too much to be eligible for overtime. | 1 p.m. 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. Get the free daily newsletter read by industry experts. .cd-main-content p, blockquote {margin-bottom:1em;} #block-googletagmanagerfooter .field { padding-bottom:0 !important; } Find out more about the announcement and what it could mean for your organization in 2022. In addition to being a Practice Group Leader, he co-manages the firms Litigation Department. US Executive Branch Update February 28, 2023. A final rule on improving tracking of workplace injuries and illnesses is slated for December, as well. EC Appeals European General Court Decision Annulling the Harmonized Weekly Bankruptcy Alert February 28, 2023. Please log in as a SHRM member. The employee must be employed as a computer systems analyst, computer programmer, software engineer or other similarly skilled worker in the computer field performing the duties described below; The employees primary duty must consist of: The application of systems analysis techniques and procedures, including consulting with users, to determine hardware, software or system functional specifications; The design, development, documentation, analysis, creation, testing or modification of computer systems or programs, including prototypes, based on and related to user or system design specifications; The design, documentation, testing, creation or modification of computer programs related to machine operating systems; or. AsHelix Energydemonstrates, the failure to meet one of these tests will result in an employee being non-exempt and eligible for overtime regardless of the employees duties or how much they earn. Topics covered: National employment laws, harassment, accommodations, training, and more. The policy directed U.S. The overtime threshold is a salary level used to determine which employees are eligible to receive overtime pay when they work over 40 hours in a single workweek. She noted that six 90-minute meetings have been scheduled with stakeholders from March 8 to April 6: three meetings with unions and worker advocates, plusthree more with industry groups, including one with SHRM. #views-exposed-form-manual-cloud-search-manual-cloud-search-results .form-actions{display:block;flex:1;} #tfa-entry-form .form-actions {justify-content:flex-start;} #node-agency-pages-layout-builder-form .form-actions {display:block;} #tfa-entry-form input {height:55px;} Helix Energy Solutions paid Michael Hewitt a daily rate ranging from $963 to $1342 per day. An agency within the U.S. Department of Labor, 200 Constitution Ave NW .manual-search ul.usa-list li {max-width:100%;} A combination of the aforementioned duties, the performance of which requires the same level of skills. The .gov means its official. Minimum Wages Are On the Rise in Several States. 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. Please enable scripts and reload this page. NLRA joint employment liability has seen similar debate in recent years. With the issuance of its spring regulatory agenda on June 21, the U.S. Department of Labor (DOL) announced that its proposed overtime rule is now tentatively slated to be released in October. Primary duty means the principal, main, major or most important duty that the employee performs. The Obama administration's 2016 overtime rule, which a 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? */. $("span.current-site").html("SHRM China "); Oregon's overtime payment .manual-search-block #edit-actions--2 {order:2;} SHRM Employment Law & Compliance Conference, Proposed Overtime Rule Now Projected to Come Out in Fall, New OSHA Guidance Clarifies Return-to-Work Expectations, Trump Suspends New H-1B Visas Through 2020, Faking COVID-19 Illness Can Have Serious Consequences, White House Takes Action Against Migrant Child Labor, How to Handle Overtime, Meal Break and Other Wage and Hour Crises. Think, ' I 'm fine, ' `` she cautioned, should! A SHRM Specialty Credential than ever and navigate employment laws, stay compliant and mitigate risks... 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