Benefits And CompensationHR Management Compliance

DOL Delays Regs, Withdraws Steering Issued Throughout Trump Administration’s Ultimate Days

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In the course of the previous a number of presidential transitions, it has change into a pattern for the incoming administration to repeal or delay many laws and steering paperwork issued within the waning days of the earlier administration. The swap from the Trump administration to the Biden administration reveals the pattern has continued and sure will accomplish that for the foreseeable future.

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Compensating Tipped Staff

One instance of the pattern is the ultimate rule affecting compensation for tipped workers, which the U.S. Division of Labor (DOL) adopted through the Trump administration’s closing days.

As famous in an earlier HR Legal guidelines article, the DOL sought, amongst different issues, to repeal what has change into often known as the “20% rule” and as a substitute undertake a extra workable resolution for employers with tipped workers. The rule was scheduled to enter impact on March 1, 2021.

Making use of Unbiased Contractor Take a look at

One other new rule, scheduled to take impact on March 8, would have supplied important readability to employers making use of the financial realities check to judge whether or not a employee is (1) an worker entitled to extra time pay or (2) an unbiased contractor who isn’t protected by the Truthful Labor Requirements Act’s (FLSA) extra time necessities.

After issuing the regulation, the DOL supplied an opinion letter providing important readability on the rule’s applicability to owner-operators within the motor provider business.

Each Guidelines’ Efficient Dates Delayed

After President Joe Biden took workplace, he directed all federal companies to freeze pending laws for extra overview and consideration. Following the instruction, the DOL delayed the proposed efficient dates for each laws, which additionally have been reopened for public remark:

  • The tipped worker regulation’s efficient date has been delayed till no less than April 20, 2021
  • The unbiased contractor rule’s efficient date has been delay till no less than Could 7, 2021

Moreover, the DOL withdrew the owner-operator opinion letter and comparable opinion letters on grounds they “have been issued prematurely as a result of they’re based mostly on guidelines that haven’t gone into impact.”

Backside Line for Employers

Whether or not the 2 laws will take impact on the proposed dates stays to be seen. You need to proceed to remain apprised of the DOL’s evolving insurance policies and steering underneath the Biden administration.

Tessa L. Castner and Kyle D. Johnson are attorneys with Frost Brown Todd LLC. You’ll be able to attain them at [email protected] or [email protected].

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