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Tags Posts tagged with "dol proposed rule"

dol proposed rule

Photo by Markus Winkler on Unsplash

From ANCOR: 

For your awareness, see below for an announcement by the Department of Labor:

“The U.S. Department of Labor today announced plans to rescind two final rules that would significantly weaken protections afforded to American workers under the Fair Labor Standards Act. The first Notice of Proposed Rulemaking proposes the withdrawal of the Independent Contractor Final Rule issued by the department on issued on Jan. 7, 2021, for several reasons. They include the following:

  • The rule adopted a new “economic reality” test to determine whether a worker is an employee or an independent contractor under the FLSA.
  • Courts and the department have not used the new economic reality test, and FLSA text or longstanding case law does not support the test.
  • The rule would narrow or minimize other factors considered by courts traditionally; making the economic test less likely to establish that a worker is an employee under the FLSA.

Among its provisions, the FLSA requires covered employers to pay employees at least the federal minimum wage for every hour worked and overtime premium pay of at least one and one-half times their regular rate of pay for every hour worked over 40 in a workweek. An independent contractor has no FLSA protections.

The second Notice of Proposed Rulemaking seeks to rescind a current regulation on joint employer relationships under the Fair Labor Standards Act, published in the Federal Register and which took effect on March 16, 2020. In February 2020, 17 states and the District of Columbia filed a lawsuit in the U.S. District Court for the Southern District of New York against the department, arguing that the Joint Employer Rule violated the Administrative Procedure Act. The court vacated the majority of the Joint Employer Rule on Sept. 8, 2020, stating that the rule was contrary to the FLSA and was “arbitrary and capricious” due to its failure to explain why the department had deviated from all prior guidance or consider the effect of the rule on workers.

The department invites comments from the public on both proposed rules at www.regulations.gov. The comment periods end on April 12, 2021.

Anyone who submits a comment (including duplicate comments) should understand and expect that the comment, including any personal information provided, will become a matter of public record. The division will post comments without change at www.regulations.gov and include any personal information provided. The division posts comments gathered and submitted by a third-party organization as a group, using a single document ID number at the site.

More information about the proposed rules is available at www.dol.gov/agencies/whd/flsa/… and at www.dol.gov/agencies/whd/flsa/2020-joint-employment.”

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Doris Parfaite-Claude
Federal Advocacy and Research Manager
American Network of Community Options and Resources
Alexandria, VA
(703) 535-7850, x108
dparfaite-claude@ancor.org

The National Council released the information described below on July 9. RCPA will be accepting comments to provide to the National Council until August 3.

The Department of Labor (DOL) has proposed extending its overtime pay exemption rules to include employees making up to $50,440 next year, a change that could affect up to 5 million workers. Under the new proposal, the salary threshold for overtime pay would rise to $970 per week ($50,440 per year) in 2016. The current level of $455 per week ($23,660) was established in 2004, and it is below the poverty line for a family of four.

Unlike the current exemption threshold, the newly proposed threshold is linked not to a specific salary amount, but to the 40th percentile of wage earners. Thus, the new salary threshold will automatically update over time. The proposed regulation affects white collar workers (executive, administrative, and professional). More information is available in this fact sheet.

The DOL has posted the proposal online, giving people the opportunity to submit written comments on or before September 4. The White House has stated that the DOL will release a final rule next year after reviewing and considering these comments.