OFCCP Week in Review: July 31, 2017

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OFCCP Week in Review: July 31, 2017

OFCCP Week in Review, Authored by John C. Fox, Candee Chambers & Jennifer PolcerThe OFCCP Week in Review (WIR) is a simple, fast and direct summary of relevant happenings in the OFCCP regulatory environment, authored by experts John C. Fox, Candee Chambers and Jennifer Polcer. In today’s edition they discuss:

 

 

DOL Published RFI on FLSA Overtime Rule

Tuesday, July 25, 2017
The U.S. Labor Dept. (DOL) Wage and Hour Division (WHD) officially submitted its Request for Information (RFI) related to the overtime rule. The RFI foreshadows the Department’s intent to revise the salary level for exemptions from overtime currently dependent on a minimum salary level, among other things. The full text of the RFI can be viewed here. The rule, a cornerstone of the Obama administration’s labor agenda, would have more than doubled the Fair Labor Standards Act’s overtime salary threshold to the equivalent of $47,476, and thus drastically expanding the number of employees eligible for overtime pay.

Key questions from the RFI, summarized below, include the following which suggest the Department is willing to think very broadly about both differential salary tests for exemption and also having no salary test at all for certain exemptions or under only certain circumstances:

  • What methodology should DOL use to set a new threshold?
  • Should the reg contain multiple salary levels (separated by industry, region, etc.)?
  • Should the reg contain different salary levels for different exemptions (i.e. administrative, professional, executive)?
  • At what salary level does the duties test no longer fulfill its historical role in determining exempt status?
  • Did you make changes for the Dec. 1, 2017, effective date and, if so, have you reversed course?
  • Should DOL do away with the minimum threshold concept altogether?
  • Should the standard salary level and the highly compensated employee total annual compensation level be automatically updated on a periodic basis?

Employers have until Sept. 25, 2017 to provide input on these questions. Tell DOL what you think!

 

“Save Local Business Act” Would Overturn NLRB Position on Joint Employment

Thursday, July 27, 2017
House Republicans introduced a bill they say would rein in the current NLRB joint employer standard and provide simplified guidance for employers.

  • The bill, titled the “Save Local Business Act,” would amend the National Labor Relations Act and Fair Labor Standards Act to state an employer can only be deemed a joint employer if it exercises “significant control” over an employee. Bill sponsors claim the law would bring back “clarity” and more neatly outline an employer’s responsibility over its employees.
  • The bill defines the terms of employment that would indicate significant control, including hiring and firing decisions, pay rate determination, day-to-day supervision, assigning individual schedules and tasks and administering employee discipline

The DOL recently took back its joint employer AI (Administrator’s Interpretation) and the groundbreaking Browning-Ferris joint-employer case the Obama Administration championed to create an expansive definition of joint-employment (bad for employers) is under judicial review, with a ruling expected any day now–just as the NLRB nears its new Republican majority.

More broadly, employers are unlikely to get much more clarification on various wage and hour issues until a WHD administrator is fully in place. That process could extend into 2018.

 


THIS COLUMN IS MEANT TO ASSIST IN A GENERAL UNDERSTANDING OF THE CURRENT LAW AND PRACTICE RELATING TO OFCCP. IT IS NOT TO BE REGARDED AS LEGAL ADVICE. COMPANIES OR INDIVIDUALS WITH PARTICULAR QUESTIONS SHOULD SEEK ADVICE OF COUNSEL. Reminder: If you have specific OFCCP compliance questions and/or concerns or wish to offer suggestions about future topics for the OFCCP Week In Review, please contact your membership representative at (866) 268-6206 (for DirectEmployers Association Members), or email Jennifer at jpolcer@directemployers.org with your ideas.

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About the Author

Jennifer PolcerJennifer Polcer, PHR, SHRM-CP, is the VP of Compliance at DirectEmployers Association. Jennifer brings over 15 years of HR experience to the Association, as well as a skilled background in both OFCCP compliance and employment law analysis. In her current role, Jennifer looks to be a resource to Members providing guidance on compliance matters related to Affirmative Action, audit advocacy and additional education surrounding government contractor obligations. Along with her dedicated team, Jennifer manages the relationship with the National Association of State Workforce Agencies (NASWA), and co-manages the National Labor Exchange (NLx)—the nation’s first electronic labor exchange developed as a collaborative effort between employers and state workforce agencies.View all posts by Jennifer Polcer »

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