This fall, the U.S. Department of Labor (DOL) published its regulatory agenda, outlining its planned regulatory and deregulatory activities to the Executive Office of the President, Congress, agency managers, and the public.
While each of DOL’s major agencies published information regarding planned activities, the Wage and Hour Division (WHD) identified three items in particular involving Notices of Proposed Rule making (NPRM) that could have significant effects on employers and employees.
The first is a planned NPRM seeking information to help determine the appropriate salary levels for exemption of executive, administrative, and professional employees under the Fair Labor Standards Act. The purpose is to update the salary levels used to help establish if a person is considered exempt under 29 CFR 541. This primarily impacts overtime pay but also affects other FLSA issues as well. The NPRM could be published around March 2019.
The next item of interest involves a planned clarification of the joint employment relationship under the FLSA. Current regulations in this area are nearly 60 years old and do not reflect the current workplace. The NPRM for Joint Employment could be published as soon as this month.
The last area of interest is the planned NPRM to clarify, update, and define the basic rate and regular rates of pay under the FLSA. DOL acknowledges that the regulation in this area has been updated several times in the past several decades, but officials don’t believe that it currently offers the flexibility needed in a modern workforce.