Tuesday, December 6, 2022
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Extra time rule heads into OT: DOL misses October objective for wage threshold replace

Dive Transient:

  • The month of October handed with out the proposal of latest Truthful Labor Requirements Act time beyond regulation laws. The U.S. Division of Labor had projected it could subject a proposal final month.
  • Of curiosity to employers, the regulation presumably would have addressed the wage threshold which determines whether or not bona fide government, administrative {and professional} workers are exempt from the FLSA’s minimal wage and time beyond regulation necessities.
  • “The Wage and Hour Division continues to be creating a proposal updating time beyond regulation laws below the Truthful Labor Requirements Act,” a DOL spokesperson informed HR Dive in an electronic mail Thursday. “The division held a number of stakeholder listening classes in 2022, and DOL continues working towards this proposal.”

Dive Perception:

Plans to lift the FLSA white-collar exemption threshold have been within the works for greater than a yr. The Trump administration carried out the final improve — from $23,660 per yr to $35,568 per yr — in 2019. 

Although it marked the primary improve to the FLSA’s time beyond regulation threshold in over a decade, 2019’s last rule additionally got here in effectively under the Obama administration’s 2016 plan, which pegged the cutoff at $47,476 per yr. A federal choose enjoined the rule simply weeks earlier than former President Barack Obama left workplace. DOL appealed the choose’s determination however the Trump administration dropped the case in anticipation of promulgating its personal threshold.

The early years of the Biden administration signaled a possible revisiting of time beyond regulation laws. In June 2021, Secretary of Labor Marty Walsh informed Congressional lawmakers that the $35,568 determine was “undoubtedly” too low and that DOL might point out in a future proposal whether or not it believed that common and computerized updates to the edge can be wanted. Later that yr, DOL included time beyond regulation regs on its semiannual regulatory agenda.

It’s unclear simply what threshold the Biden administration might suggest. Final yr, a bunch of 4 Congressional Democrats known as on Walsh to place ahead a threshold equal to the fifty fifth percentile of full-time, salaried wage earners within the U.S. Per the letter, that might quantity to $82,732 a yr by 2026.

Pay is only one side of the FLSA’s minimal wage and time beyond regulation regs, nevertheless. Employers additionally should apply the regulation’s “duties” take a look at to find out whether or not an worker qualifies for exemption. Within the occasion of a brand new rule, sources beforehand informed HR Dive that employers might have to think about creating methods to deal with potential pay will increase in addition to submit public feedback to DOL on the feasibility of any new threshold.


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