Time running out to comment on long-stalled overtime rule

September 14, 2017 - by: Tammy Binford 0 COMMENTS

HR News Overtime Rule NearsEmployers and others have until September 25 to submit comments to shape the rule governing which workers are eligible for overtime pay. Once the deadline passes, employers will face a waiting game before learning what changes may be in store.

In late July, the U.S. Department of Labor (DOL) announced it was soliciting comments through a Request for Information (RFI) dealing with the long-stalled and much-debated rule aimed at raising the salary threshold in the Fair Labor Standards Act (FLSA) so that more workers will be eligible for overtime pay.

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New bill latest effort to tackle definition of joint employment

July 28, 2017 - by: Tammy Binford 0 COMMENTS

NLRB logoThe definition of “joint employment” may be heading for another turnaround. Legislation introduced in Congress on July 27 takes aim at a 2015 National Labor Relations Board (NLRB) decision that raised the ire of many in the business community, especially employers that work with franchisees, contractors, and staffing agencies.

The NLRB’s 2015 Browning-Ferris decision broadened the joint-employment standard so that a business that exercises only indirect control over another employer’s workers still can be considered a joint employer for purposes of collective bargaining. The new bill introduced in the House—dubbed the Save Local Business Act—seeks to clarify the joint-employment standard and provide relief to businesses that are in a relationship with another employer.

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DOL seeking feedback on long-debated overtime rule

July 25, 2017 - by: Tammy Binford 0 COMMENTS

Overtime snipEmployers will get the opportunity to offer feedback on changes to the regulation governing which workers are eligible for overtime pay after the U.S. Department of Labor (DOL) publishes a Request for Information (RFI) in the Federal Register on July 26.

On July 25, the DOL announced it would publish the RFI and released a preliminary copy. The RFI is the latest action on a rule issued in May 2016 during the Obama administration. Implementation of the rule would have added approximately 4.2 million employees to the ranks of workers eligible for overtime pay of at least 1½ times their regular rate of pay for hours worked in excess of 40 in a workweek.

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DOL drops defense of overtime rules

June 30, 2017 - by: HR Hero 0 COMMENTS

by Susan Prince, JD, MSL

The U.S. Department of Labor (DOL), headed by new Secretary of Labor Alexander Acosta, has decided not to defend the overtime rules finalized under the Obama administration. Instead, the DOL will seek to begin a new rulemaking process, likely with a lower salary threshold for overtime exemptions.

Background

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DOL rescinds joint-employment, independent contractor guidance

The U.S. Department of Labor (DOL) has withdrawn two major Obama-era guidance documents, one addressing joint employment and one dealing with independent contractors.

The move, while not a surprise, is good news for employers, according to H. Juanita Beecher, an attorney with Fortney & Scott and editor of Federal Employment Law Insider. The Obama administration tried to find a way to deal with shifting employer-employee relationships, she said. The effort included a focus on outsourcing and the use of staffing companies as well as a big push to examine whether independent contractors were actually employees. By rescinding the guidance documents, the DOL is backing off its “aggressive” initiative, Beecher said.

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Signaling end of overtime rule, DOL will seek public input on new regs

On June 7, Secretary of Labor Alexander Acosta said he will soon formally request the public’s input on new overtime regulations. The announcement signals that the U.S. Department of Labor (DOL) likely will drop its defense of former President Barack Obama’s overtime rule, according to one expert.

A request for information (RFI) likely will be filed with the White House’s Office of Management and Budget (OMB) in the next two to three weeks, Acosta told lawmakers during a budget hearing of the House of Representatives’ Committee on Appropriations.

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House passes comp time bill; White House voices support

The U.S. House of Representatives has passed a bill that would allow private employers to offer workers compensatory time off in lieu of overtime pay.

The Working Families Flexibility Act of 2017 will now go to the Senate. However, despite having the White House’s support, the bill could face obstacles.

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Puzder hearing set for January, Dems defend overtime rules

December 28, 2016 - by: Kate McGovern Tornone 0 COMMENTS

The Senate has scheduled a January confirmation hearing for President-elect Donald Trump’s pick for secretary of labor.

Trump’s nomination of Andy Puzder, CEO of CKE Restaurants, was the death knell for the U.S. Department of Labor’s (DOL) new Fair Labor Standards Act (FLSA) overtime regulations, according to John Husband, a partner at Holland & Hart in Denver and an editor of Colorado Employment Law Letter.

It already was expected that the Trump DOL would withdraw the department’s appeal of an injunction blocking the rules, but Puzder’s nomination solidified that prediction, Husband previously said.

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Court expedites appeal of overtime rule injunction

December 09, 2016 - by: Kate McGovern Tornone 0 COMMENTS

A federal appeals court will review the temporary injunction blocking new overtime regulations on an expedited schedule that wraps things up even faster than the U.S. Department of Labor (DOL) had requested. But it still won’t reach a decision until after President-elect Donald Trump’s inauguration, and that could mean the end of the overtime rule, according to some experts.

The U.S. 5th Circuit Court of Appeals granted the DOL’s motion for expedited review December 8. The court scheduled most briefing deadlines as the DOL had requested, but it slated final briefs for January 31 rather than the proposed February 7.

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Movement on overtime rules unlikely before Trump takes office

December 06, 2016 - by: Kate McGovern Tornone 0 COMMENTS

The U.S. Department of Labor (DOL) has requested that an appeals court fast-track its appeal of an injunction blocking the new overtime regulations. But even if the court agrees to the DOL’s proposed expedited schedule, it wouldn’t take action on the injunction until at least February, weeks after President-elect Donald Trump takes office.

The department filed an appeal with the U.S. 5th Circuit Court of Appeals on December 1. It argued that a federal district court judge’s injunction halting the rules “rests on an error of law and should be reversed.” The judge called into question the DOL’s authority to establish a salary basis test for overtime eligibility under the Fair Labor Standards Act (FLSA). In its appeal, the DOL argues that the 5th Circuit has already sanctioned the test in previous opinions.

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