DOL plans May release for new overtime threshold

Dive Transient:

• The U.S. Division of Labor has once more prolonged its timeline for proposing a brand new wage threshold for extra time eligibility, this time to Might, in accordance with the company’s newest regulatory agenda, revealed this week.
• The Discover of Proposed Rulemaking was initially slated for April 2022 however then delayed to October of that 12 months. The Might purpose represents a second delay.
• In keeping with DOL’s agenda, the proposed rule will replace the wage stage at which many employees change into exempt from the Truthful Labor Requirements Act’s minimal wage and extra time necessities. As soon as proposed, stakeholders could have a possibility to remark earlier than the company finalizes its rule.

Dive Perception:

As soon as a sleepy space of employment regulation, the FLSA’s laws took the highlight when the Obama administration introduced its intent to replace the foundations’ ground for extra time eligibility. Workers paid beneath that determine should obtain time-and-one-half their common fee of pay after they work greater than 40 hours in a workweek.

That wage threshold had been set at $23,600 ($455 per week) since 2004, and DOL despatched shockwaves by means of the employment group when it proposed — and finalized — a rule to greater than double that quantity, upping the brink to $47,476 threshold ($913 per week).

The transfer would have entitled hundreds of thousands extra workers to extra time pay, economists estimated, nevertheless it was halted when a federal choose enjoined the rule simply days earlier than it was set to take impact. Shortly thereafter, President Donald Trump took workplace and DOL deserted its protection of the rule.

Trump’s DOL then revisited the brink, agreeing that a rise was wanted, however one far beneath the speed Democrats had deliberate. The company in the end proposed and efficiently carried out a $35,568 threshold.

One other improve has lengthy been on the Biden administration’s agenda, nevertheless it has not stated what greenback determine it has in thoughts. In 2021, 4 congressional Democrats argued for a threshold in keeping with the “historic excessive level of wage thresholds — the fifty fifth percentile of incomes of full-time salaried employees nationwide.” That will have resulted in a threshold of $82,732 by 2026, the letter stated.