Jumping to 47,476 was a ‘shock to the system’
Just when you were thinking about taking some time to relax this summer, the Dept. of Labor (DOL) rolled out three changes that Payroll will need to stay on top of.
The new Secretary of Labor, Alexander Acosta, has been on the go since his confirmation in April 2017.
In fact, on June 7, 2017, the DOL moved forward with several Payroll-related measures.
OT rule revisions
During a DOL budget hearing held before a House Appropriations Subcommittee, Acosta talked about the 2016 overtime rule revisions that have been on hold.
Jumping from $23,660 to $47,476 as the salary threshold for who’s exempt from overtime was a “shock to the system,” Acosta said.
He suggested adjusting the existing 2004 salary level for inflation, which would come out to about #33,000 per year.
Acosta said the DOL is in the process of drafting a Request for Information (RFI), asking for public comments on the overtime rule. And get ready, what follows an RFI is often a proposed rule.
2015 guidance gone
The second change is good news for employers struggling to correctly classify workers as employees or independent contractors, because there’s a less intense standard now.
The DOL has withdrawn Administrator’s Interpretation No. 2015-1, informal guidance which leaned heavily on the economic realities test.
The guidance included the idea that most workers would be employees, not independent contractors.
2016 guidance also gone
Guidance on another topic has also been withdrawn, thanks to Acosta. It’s Administrator’s Interpretation 2016-1.
The guidance threw the spotlight on Fair Labor Standards Act liability, and it defined horizontal and vertical joint-employment relationships.
There’s less pressure on employers new without the guidance in place.
More info: apporopiations.house.gov and www.dol.gov/newsroom/releases/opa/20170607