On may 18, 2016, the department of labor dol announced its changes to the fair labor. Many observers believe that with the release of the changes the dol will increase its enforcement efforts. Summary of federal law changes affecting exemptnon exempt worker status on may 18, 2016, the department of labor dol announced its changes to the fair labor standards act flsa white collar overtime exemption rules. The dol is also predicting that the higher salary thresholds for white collar exemptions will simplify the employee classification process for. Key elements in department of labor s new fair pay. The fair labor standards act contains numerous specific exemptions to its minimum wage and overtime requirements. In addition, certain employers and employees are exempt from coverage. Students must have ready access to databases and other resources that allow them to develop their skills in searching the chemical literature and support instructional and research activities. No changes have been proposed for the salary basis or job duties tests. This paper presents an overview of most of those exemptions, with the goal of providing management with a useful reference tool. Proposed changes to the white collar exemption 4 c. Florida arf position paper 1 use of subminimum wages march 2017 section 14c of the fair labor standards act white paper background in 1938 congress enacted section 14c of the fair labor standards act flsa to allow payment of. Changes to the fair labor standards act flsa currently are on hold pending litigation. The final rule does not alter the duties tests applicable to the white collar exemptions.
The fair labor standards act flsa establishes minimum wage, overtime pay, recordkeeping, and child labor standards affecting fulltime and parttime workers in the private sector and in federal, state, and local governments. Department of labor issues final overtime rule dol. If enacted, its reported that the proposed rule would more than double the salary level. The flsa also guarantees overtime compensation at a rate of time and one half to most individuals who work in excess of 40 hours per week. An overview congressional research service summary the fair labor standards act flsa provides workers with minimum wage, overtime pay, and child labor protections. Specifically, the proposed regulations increase the minimum salary required to be earned by an employee in order for that employee to be exempt from the flsa overtime. On december 16, 2016, a regulation was to have taken effect regarding criteria for overtime exemptions. Sep 20, 2019 how this change would affect washington workers, employers, and the economy. The flsa provides for additional white collar exemptions as well, such as the outside sales and computer exemptions, but the executive, administrative, and professional exemptions are the main three exemptions affected by the dols proposed change to the flsa regulations. That exemption requires that the employees primary duties be office or nonmanual work. The many other rules changes the dol proposes would remove. Step a reflects the fact that rules regarding overtime and the minimum wage apply only to those workers who are subject to the fair labor standards act. Department of labor proposes new regulations regarding white.
This report answers frequently asked questions about the overtime provisions of. The dol is accepting comments until september 4, 2015. The proposed revisions would fundamentally change and update all three tests generally required to be met for the exemption to apply. Changes in overtime regulations expand eligibility public. Generally, in order for a worker to fall within the scope of. While the dol had not proposed a change to the duties tests, there had been speculation that the dol may incorporate such a change in the final rule. The department of labor intends to propose updates to the salary threshold regularly.
The proposed regulations were published in the federal register on july 6, 2015. According to the dol, nearly 5 million white collar workers would be affected by the proposed rule change. Number of workers affected by changes to eap exemptions in the 2019. Flsa p roposed r egulations about 290,000 comments were submitted on the proposed flsa regulations labor department said the regs will be finalized in july ipmahr conducted a survey of state and local governments on this issue and submitted comments that raised the following issues. The primary authors of this white paper are peter g. Such a tool is useful because proper application of flsa exemptions can result in. The fair labor standards act sets minimum wage, overtime pay and youth. Mar 21, 2019 paque the proposed flsa changes by the u. The minimum threshold an employee must be paid to qualify as managerial, professional or administrative employees exempt from overtime requirements would change from the current.
What does bona fide whitecollar exempt employees mean. The work product contained in this paper is entirely that of the student author. The minimum threshold an employee must be paid to qualify as managerial, professional or administrative employees exempt from overtime requirements would change. Under the current fair labor standards act flsa regulations adopted in 1938, most workersan estimated 79% as of 1999are guaranteed the right to overtime pay, or time and a half, for every hour. Department of labor dol administers and enforces the. June 1, 2020 industrywide labormanagement safety committee task force alliance of motion picture and television producers white paper. However, although provisions have been delayed by a federal court injunction, employers should still err on the side of prudence and be prepared to comply. Casualty actuarial and statistical c task force regulatory. In a recent paper, 1 we described the key proposed changes to the flsa, how they came about, and how the postdoctoral population was meant to be affected by the rule. Other business impacts of the proposed flsa changes first. Alliance of motion picture and television producers. On june 30, 2015, the dol announced proposed changes to the section 541 flsa. Dol drafts final regulation, taking into account public comments. The employees primary duty must be the performance of office or non manual work directly.
Interactive handy reference guide to the fair labor standards act pdf. For whitecollar workers, three tests determine whether they are exempt. Eeoc reporting, due in march 2018 using the new eeo1 form, could be revised or entirely. This document looks at the legislative proposals before passage of the bill. What the proposed changes to flsa overtime rules mean g. Exempt employees, because of their rate of pay and type of work that they do, are not eligible for. Over the last several years, federal legislation has been proposed to eliminate use of 14c wage. The economic policy institute estimates that raising the eap salary threshold to 2. Enclosure 4 staff white paper on nei 9902 guidance changes. The flsa overtime rule determines whether employees are eligible or exempt for overtime pay. Congress first adopted the flsa in 1938 and has amended it numerous times over the the flsa years.
The minimum salary threshold test for the whitecollar overtime exemption is changing. On march 31, 2003, the department of labor dol proposed regulatory changes, which if adopted, could make more than eight million white collar employees ineligible for overtime pay. On june 30, 2015, the united states department of labor dol released proposed regulations that would modify certain provisions of the fair labor standards act flsa. On june 30, 2015, the dol announced a highly anticipated proposed rule that would. Minimum wage the federal fair labor standards act flsa is one of the earliest efforts of the federal government to regulate the workplace. The dol is also predicting that the higher salary thresholds for white. Members can get help with hr questions via phone, chat or email. Department of labor us government publishing office. Enclosure 4 staff white paper on nei 9902 guidance. Department of labor releases final rule revising white.
Interactive handy reference guide to the fair labor standards act pdf for best printout, see the pdf version. Department of labor dol issued a notice of proposed rulemaking that proposes increasing the threshold at which employers can invoke certain white collar exemptions to the fair labor standards act overtime requirements. That exemption requires that the employees primary duties be office or non manual work. Sep 24, 2019 a 2016 final rule to change the overtime thresholds was enjoined by the u. Fair labor standards act flsa changes frequently asked. The revised regulations define which employees are exempt from flsa protections such as overtime and which employees are nonexempt and thus overtime. See page 5 of this white paper for the proposed changes to the student skills section. Department of labor under the obama administration were invalidated in 2017 when judge amos mazzan of the eastern district of texas determined that the 2016 final rule issued by the u.
Overtime exemptions in the fair labor standards act for white. Managing the increased risk of wage issues in the shale plays. Estimating the number of workers directly benefiting from the. Fair labor standards act flsa frequently asked questions. This is similar to the proposed rule issued in march 2019 and was generally considered. Section 14c of the fair labor standards act white paper. Congress, which has amended the flsa many times over the years most recently in 2000, has not authorized any change in the white collar exemption rules and has not directed the dol to take overtime protection from millions of workers. Section 14c of the fair labor standards act white paper background in 1938 congress enacted section 14c of the fair labor standards act flsa to allow payment of. Although it was kept a bit on the down low without much media attention, on june 30, 2015, the united states department of labor dol released proposed regulations that would modify certain provisions of the fair labor standards act flsa. Department of labor proposes amendments to the flsas. Court of appeals for the fifth circuit has held the appeal in abeyance pending further rulemaking regarding a revised. Staff white paper on nei 9902 guidance changes for mspi for clarification of planned ua expectations meeting summary of the 052009 reactor oversight. While the law contains many elements that employers need to be aware of, one of the areas that has received the most attention is the overtime pay rule. Oct 17, 2019 okay, now tell us the new proposed flsa rule and when it goes into effect.
Frequently asked questions about the fair labor standards act flsa and overtime. Department of labor proposes new regulations regarding. Other business impacts of the proposed flsa changes. Epi comments on proposed changes to washington statess. Pra and that changes to the ua baseline should only occur as a result of or consistent with changes to the pra. Labor and employment issues facing the healthcare industry. Thus, the 2019 proposed rule would affect eap employees at salary. Health impact assessment of proposed changes to the. In fact, the legitimacy of the proposed changes is questionable. Dol will hear testimony regarding the proposed changes before issuing a final version to the office of information and regulatory affairs oira. Under current dol regulations, most whitecollar employees executives. If the proposed changes are passed as written, the white house estimates that an additional 4. Jan 26, 2016 a few things you might not have thought about regarding proposed changes to the fair labor standards act on june 30, 2015 the department of labor dol released its proposed changes to the fair labor standards act flsa overtime regulations. Handbook and the new final rule include language indicating that clergy and other religious.
A look into overtime under the flsa and how businesses can prepare on sept. The proposed rule had mandated annual updates to the salary requirement. The proposed changes had loosened this requirement for the learned. On march, 2014, president barack obama directed the dol to modernize and streamline the flsa overtime regulations. On june 30, 2015, the united states department of labor dol released a proposed rule which, if implemented, will alter the minimum salary threshold for the socalled white collar exemptions to the minimum wage and overtime requirements of the fair labor standards act flsa. Standards act flsa white collar overtime exemption rules. Flsa overtime rules employee services tarleton state university. Memorandum directing the secretary of labor to propose revisions that modernize and. Department of labor proposes longawaited flsa reform. Overview of proposed changes the current regulations have created considerable confusion over the years regarding who is, and who is not, exempt from the flsas overtime pay requirements.
Department of labor dol released its final rule that boosts the salary threshold at which workers are eligible to receive overtime, making a major change to employee exemption criteria under the. Dol proposes increase to flsa exemption threshold white. There is a need to recognize how work in the 21 st. As a minimum, an evaluation of a proposed changes impact on the pra should be performed to determine that consistency is maintained. However, section a1 of the flsa carves out exemptions to the overtime pay requirement for individuals in certain. As background, the flsa became law in 1938, and it sets the federal minimum wage. White paper bereley research group 1 abstract in march 2016, the us department of labor submitted revised fair labor standards act flsa regulations to the white house for final approval. Estimating the number of workers directly benefiting from. Dunn for most people, the most immediate and most significant change is the increase to the minimum salary threshold for exempt employees.
Proposed changes to flsa white collar exemptions koley jessen. Specifically, the proposed regulations increase the minimum salary required to be earned by an employee in order for that employee to be exempt from the flsa overtime requirements. District court for the eastern district of texas on november 22, 2016, and was subsequently invalidated by that court. The flsa covers most, but not all, private and public sector employees. This white paper provides guidance to higher education institutions in. The proposed changes to the white collar exemptions of the fair labor standards act flsa are looming large in the minds of many employers.
The final rule, strengthens overtime protections for workers. Act flsas overtime regulations, this number will almost certainly continue to rise. These revisions will be effective august 23, 2004, unless congress acts to block them. Tip regulations under the fair labor standards act flsa. Effects of the fair labor standards act update or lack. Litigation and investigations targeting home healthcare 5 1. Department of labor dol announced a notice of proposed rulemaking and request for comments on proposed updates and amendments to the regulations issued under the fair labor standards act flsa which implement the exemption from minimum wage and overtime pay requirements for executive, administrative, professional, outside sales, and computer employees i. This hia assessed changes proposed in several bills by the senate and house during the 112th and 1th. Proposed health and safety guidelines for motion picture, television, and streaming productions during the covid19 pandemic submitted. The fair labor standards act sets minimum wage, overtime pay and youth employment standards for workers and employers in the private sector as well as federal, state and local governments.
The dol published new regulations on september 24, 2019. Classifying healthcare workers as independent contractors 4 b. Significant changes to flsa white collar exemptions. Handy reference guide to the fair labor standards act u. The fair labor standard act flsa is a broad federal law that covers several areas of the employment relationship. Department of labor dol made sweeping changes to the regulations governing the white collar overtime exemptions under the federal fair labor standards act flsa. These new regulations will change the overtime exemption status for some employees. The flsa is a federal law that establishes minimum wage, overtime pay, recordkeeping and. In early march of this year the united states department of labor advised a rule that would considerably adjust the pay standards for overtime exemptions under the fair labor standards act. The bulk of exempt employees are subject to the new salary level.
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