Federal agencies to review overtime and joint employment rules in 2022


Diving Brief:

  • Federal authorities plan to propose new overtime and joint employment regulations in the new year, among other updates, according to regulatory agendas released Friday.
  • The U.S. Department of Labor said it will review the Fair Labor Standards Act regulations that implement white-collar minimum wage and overtime exemptions and propose an update in April 2022.
  • Separately, the National Labor Relations Board said it plans to propose in February 2022 an update to the rules that govern when two or more employers are jointly liable for breaches of national labor relations law. .

Overview of the dive:

The DOL and NLRB notices represent the latest updates in a years-long debate on the two topics, and neither comes as a surprise to employment experts.

After much back and forth at the end of the Obama administration, the FLSA’s current overtime threshold sits just over $35,000 a year, meaning employees earning less are entitled to the pay. minimum and overtime. Earlier this year, congressional Democrats called for a substantial increase, to more than $82,000. In July, the DOL confirmed that it was reviewing the threshold, considering an increase and automatic updates; Friday’s announcement could represent the first step in this process.

The NLRA’s joint employment responsibility has been the subject of similar debate in recent years. The latest update was a Trump-era rule that reduced joint employment and is the subject of ongoing, high-profile litigation. Just this week, Bloomberg Law reported that employer groups supporting the standard had hired Philip Miscimarra — chairman of the NLRB under the Trump administration — to champion the rule.

Friday’s announcements included few details about what the regulations might entail; more information and an invitation to comment are likely to come in the formal proposals.


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