Advocacy News – Aug. 16, 2023
Business owners and HR professionals will need to keep an eye out for new federal regulations to topics including overtime pay, independent contractors, joint employer standards, privacy and data security, emerging AI technologies, subscription services, pricing practices, online reviews, health and wellness apps, vehicle sales practices, telephone solicitations, and business contracts.
Why it matters: The federal government is getting increasingly aggressive with its regulatory rulemaking. Business should actively monitor their compliance requirements to ensure they aren’t caught flat-footed if and when the rules take effect.
The US Chamber has an FTC rulemaking tracker, which highlights individual rule proposals, event timelines the Chamber’s related activities. The FTC proposals range from privacy and data security, emerging AI technologies, subscription services, pricing practices, online reviews, health and wellness apps, vehicle sales practices, telephone solicitations, and business contracts.
Go Deeper: A Summary of New Federal Rules Coming as Early as Fall 2023
Overtime Exemption
The U.S. Department of Labor’s (DOL) proposed rule to update overtime pay regulations is pending review at the White House.
The current salary threshold for exemption from overtime pay is $35,568 per year, a figure set by the Trump administration in 2019. That threshold is much lower than the Obama administration’s 2016 salary level of $47,476.
The new exempt salary test will raise the threshold—making more white-collar workers eligible for overtime pay. The question is how high they will try to go. Some believe the rule could set the threshold in the $50,000 to $80,000 range (possibly with annual inflationary increases) and for the duties test to change as well.
Read more about the proposal HERE.
Independent Contractor Rule
The DOL’s proposed independent contractor rule, which has been delayed until October of 2023, would implement a multiple factor test to determine whether a worker is an employee or an independent contractor. The weight of each factor would depend on the facts of the case and where additional factors may be relevant. Many expect the final rule to look like that issued back in 2022, returning to a “totality of the circumstances” test.
Read more about the proposed rule HERE.
Joint Employer Standard
The National Labor Relations Board’s (NLRB’s) proposed rule on joint employers would specify that two or more employers would be considered joint employers if they “share or co-determine those matters governing employees’ essential terms and conditions of employment.” Many expect this rule in the fall of 2023 and for it to make a finding of joint employment much easier for franchise operations and temporary staffing agencies.
Read more about the proposed rule HERE.
For questions, contact Wendy Block at wblock@michamber.com.