As the New Year approaches, so do new proposed federal laws. After the New Year, employers should be on the lookout for the following:
1. Proposal to Raise the FLSA Exempt Salary Level
Under the Fair Labor Standards Act (“FLSA”), non-exempt employees must be paid 1 1/2 times their regular rate of pay for all hours worked outside a 40-hour workweek.
In April 2022, the U.S. Department of Labor intends to issue a Notice of Proposed Rulemaking (“NPRM”) to increase the minimum salary requirements of executives, administrators, and professionals, thereby making it more difficult for employers to classify executives, administrators, and professionals as “exempt” from federal overtime requirements. The Trump Administration had previously raised the minimum salary level to $684/week ($35,568/annually).
The Biden Administration may seek to create a higher threshold that is regularly revised.
2. Revisions to NLRB Joint-Employer Rule
In February 2022, the National Labor Relations Board intends to issue an NPRM to make it easier for two businesses to be deemed “joint employers” of an employee.
In 2020, the Trump Administration said that two businesses are joint employers only if they share or co-determine the employees’ essential terms or conditions of employment. The Trump Administration’s definition of “joint employer” made it more difficult for businesses to be considered joint employers. In 2022, we could see the Trump-era definition of “joint employers” rescinded and replaced with an easier standard making businesses more liable to workers for actual (or perceived) shortcomings. Employers need to brace for potential and significant changes.
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