Category: Washington Insider Alert

  • Department of Labor Proposes New Overtime Rule – CUPA-HR

    Department of Labor Proposes New Overtime Rule – CUPA-HR

    On August 30, the Department of Labor (DOL) announced a new proposed update to the salary threshold for the “white collar” exemptions to the Fair Labor Standards Act’s (FLSA) overtime pay requirements.

    DOL proposes raising the minimum salary threshold from its current level of $35,568 annually to $55,068 — a nearly 55% increase. It also raises the salary level for the Highly Compensated Exemption (HCE) to $143,988 from its current level of $107,432 (a 34% increase). The proposal does not make any changes to the duties requirements. DOL does, however, propose automatically updating the threshold every three years by tying the threshold to the 35th percentile of weekly earnings of full-time salaried workers in the lowest-wage Census Region. For more information, DOL issued a FAQ document addressing the changes in the proposed rule.

    DOL first announced their intention to move forward with the proposal in the Fall 2021 Regulatory Agenda and set a target date for its release in April 2022. However, CUPA-HR, along with other higher education organizations and hundreds of concerned stakeholders, expressed concerns with the timing of the rulemaking and encouraged DOL to hold stakeholder meetings prior to releasing the anticipated overtime Notice of Proposed Rulemaking (NPRM). In a recent letter, CUPA-HR joined other associations in calling for the department to postpone or abandon the anticipated overtime rulemaking, citing concerns with supply chain disruptions, workforce shortages, inflation, and shifting workplace dynamics.

    The proposed rule was published in the Federal Register on September 8, allowing the public 60 days to submit comments. CUPA-HR plans to file an extension request with the agency. We will also continue evaluating the current proposal and work with members to prepare comments to submit on behalf of the higher education community. Furthermore, an extended session of the CUPA-HR Washington Update on September 21 will delve into the nuances of these proposed changes and their ramifications on campus.

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  • DHS Announces Final Rule Permitting Alternative Options for Form I-9 Document Examination – CUPA-HR

    DHS Announces Final Rule Permitting Alternative Options for Form I-9 Document Examination – CUPA-HR

    by CUPA-HR | July 24, 2023

    On July 21, the Department of Homeland Security (DHS) announced a final rule permitting the Secretary of Homeland Security to authorize optional alternative examination practices for employers when reviewing an individual’s identity and employment authorization documents required by the Form I-9, Employment Eligibility Verification. The rule creates a framework under which DHS may implement permanent flexibilities under specified conditions, start pilot procedures with respect to the examination of documents, or react to crises similar to the COVID-19 pandemic.

    Simultaneously, DHS published a notice in the Federal Register authorizing an alternative document examination procedure. This provides employers who are participants in good standing in E-Verify with the option to remotely examine their employees’ identity and employment authorization documents via a live video interaction.

    Background

    Under current law, employers are required to physically examine an individual’s identity and employment authorization documents within three business days after an individual’s first day of employment. In response to the COVID-19 pandemic, DHS introduced temporary flexibilities in March 2020, enabling employers to remotely review these documents. This virtual inspection was to be succeeded by a physical examination within three business days once normal operations resumed. These flexibilities, extended multiple times, are set to expire on July 31, 2023.

    Due to the success of temporary changes to document verification procedures implemented at the onset of the COVID-19 pandemic, DHS issued a Request for Public Input (RPI) on October 26, 2021, concerning remote document examination. This move initiated a discussion on whether these leniencies should be extended permanently. After examining the comments responding to the RPI, DHS proposed a framework on August 18, 2022, empowering the Secretary to extend these flexibilities. CUPA-HR submitted comments in response to the RPI (see here) and proposal (see here) encouraging DHS to move forward expediently and ensure that a remote review process remains available following the end of the COVID-19 Flexibilities.

    Details of the Alternative Procedure

    From August 1, 2023, eligible employers can start using the alternative procedure as outlined in the Federal Register notice. The conditions include: (1) restricting participation to E-Verify participants in good standing; (2) broadening document retention requirements to include clear and legible copies of all Form I-9 documents; (3) requiring E-Verify training on fraud awareness and antidiscrimination; and (4) holding a live video interaction after the employee transmits a copy of the document(s) to the employer.

    Employers participating in E-Verify, who created a case for employees whose documents were examined during the COVID-19 flexibility period (March 20, 2020 to July 31, 2023), can opt for the new alternative procedure from August 1, 2023 to satisfy the required physical examination of the employee’s documents for that Form I-9. Conversely, employers not enrolled in E-Verify during the flexibility period must complete a physical examination in-person by August 30, 2023 as outlined in the Agency’s May 4 announcement.

    What’s Next

    Looking ahead, DHS continues to expand its efforts to streamline employment verification procedures. As part of this endeavor, the department is gearing up to roll out a pilot program offering a remote examination option not just to E-Verify-enrolled employers but also to a broader category of businesses. This pilot program is expected to inform decisions about a comprehensive expansion of the remote examination option.

    Simultaneously, DHS is preparing to issue a new edition of Form I-9. Dated August 1, 2023, the new form will become the standard for all employers starting November 1, 2023. Until then, employers can still use the previous edition dated October 21, 2019, through October 31, 2023. It’s important to note, however, that if an employer chooses to utilize the 2019 edition in conjunction with the new alternative remote inspection procedure, they must mark “alternative procedure” in the Additional Information field in Section 2 of Form I-9.

    According to DHS, more details about the new Form I-9 and the pilot program will be disclosed in the near future. CUPA-HR will continue to monitor these developments and keep members apprised as they are announced.

     



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  • Supreme Court Rules Against Affirmative Action – CUPA-HR

    Supreme Court Rules Against Affirmative Action – CUPA-HR

    by CUPA-HR | June 29, 2023

    This morning, the Supreme Court issued rulings for the cases Students for Fair Admissions v. Harvard and Students for Fair Admissions v. University of North Carolina (UNC), both of which concerned the use of race-based affirmative action in admissions decisions at colleges and universities. The court ruled in favor of Students for Fair Admissions, ultimately striking down the practice of race-conscious admissions decisions on campus.

    The Decision

    In a 6-3 decision written by Chief Justice John Roberts, the court held that Harvard’s and UNC’s admissions programs violate the equal protection clause of the Fourteenth Amendment. To summarize his arguments, Roberts noted that using a racial classification is only constitutionally permissible if doing furthers a “compelling governmental interest” and is “‘narrowly tai­lored’— meaning ‘necessary’— to achieve that interest.” He added that while “remediating specific, identified instances of past discrimination” can constitute a compelling interest that justifies race-based state action, “ameliorating societal discrimination does not.” Roberts continued by stating that “[u]niversity pro­grams must comply with strict scrutiny …  may never use race as a stereotype or negative, and — at some point — they must end.” He finished by stating the “respondents’ admissions systems — however well intentioned and implemented in good faith — fail each of these criteria [and] therefore [are invalid] under the Equal Protection Clause of the Fourteenth Amend­ment.”

    As an initial matter, Roberts noted that for universities to operate a “race-based admissions programs in a manner that” satisfies constitutional muster, it must be “‘sufficiently measurable to permit judicial [review].’” He found both universities failed to do so, stating:

    “Harvard identifies the following educational benefits that it is pursuing: (1) ‘training future leaders in the public and private sectors’; (2) preparing graduates to ‘adapt to an increasingly pluralistic society’; (3) ‘better educating its students through diversity’; and (4) ‘producing new knowledge stemming from diverse outlooks.’ (…) UNC points to similar benefits, namely, ‘(1) promoting the robust exchange of ideas; (2) broadening and refining understanding; (3) fostering innovation and problem-solving; (4) preparing engaged and productive citizens and leaders; [and] (5) enhancing appreciation, respect, and empathy, cross-racial understanding, and breaking down stereotypes.’ (…) Although these are commendable goals … it is unclear how courts are supposed to measure any of [them].”

    Secondarily, Roberts found the “respondents’ admissions programs fail to articulate a meaningful connection between the means they employ and the goals they pursue,” as well as “how assigning students to (…) racial categories and making admissions decisions based on them furthers the educational benefits that the universities claim to pursue.” Roberts states that “[r]acial classifications are simply too pernicious to permit any but the most exact connection between justification and classification.” On this point, Roberts concluded that the “categories [used by the universities] are themselves imprecise in many ways” and that institutions “would apparently prefer a class with 15% of students from Mexico over a class with 10% of students from several Latin American countries, simply because the former contains more Hispanic students than the latter.”

    Additionally, Roberts states that “race may never be used as a ‘negative’ and that it may not operate as a stereotype,” and he argues the universities’ admissions policies failed because they did both. With respect to the first item, Roberts said “the District Court observed that Harvard’s ‘policy of considering applicants’ race (…) overall results in fewer Asian American and white students being admitted.’” With respect to the stereotypes, he found the policies at issue allocated preference to those “who may have little in common with one another but the color of their skin [and that t]he entire point of the Equal Protection Clause is that treating someone differently because of their skin color is not like treating them differently because they are from a city or from a suburb, or because they play the violin poorly or well.”

    Finally, Roberts found that “admissions programs also lack a ‘logical end point,’ which the majority found was needed under the court’s jurisprudence.

    The chief justice closed his opinion by stating that colleges and universities are not prohibited from considering an applicant’s “discussion of how race affected his or her life, be it through discrimination, inspiration, or otherwise,” but institutions are banned from establishing admissions programs and practices that explicitly consider race. The opinion elaborates, “A benefit to a student who overcame racial discrimination, for example, must be tied to that student’s courage and determination. Or a benefit to a student whose heritage or culture motivated him or her to assume a leadership role or attain a particular goal must be tied to that student’s unique ability to contribute to the university. In other words, the student must be treated based on his or her experiences as an individual — not on the basis of race.”

    Justices Sonia Sotomayor, Elena Kagan and Ketanji Brown Jackson issued a dissenting opinion in both cases (To note: Jackson did not take part in considering the decision in the Harvard case due to her previous connection with Harvard College). Sotomayor wrote in the dissenting opinion that the court’s decision “rolls back decades of precedent and momentous progress” and that it “holds that race can no longer be used in a limited way in college admissions to achieve such critical benefits,” which “cements a superficial rule of colorblindness as a constitutional principle in an endemically segregated society where race has always mattered and continues to matter.”

    In August 2022, CUPA-HR joined the American Council on Education and others in filing an amicus brief in support of Harvard and UNC. The brief argued that the Supreme Court should rule in favor of preserving race-conscious affirmative action, as has been made precedent for decades. The brief highlights the value of considering race and ethnicity during the admissions process and the broader impact such initiatives have for institutions’ efforts to increase diversity on campus.

    The Decision

    Prior to the rule’s issuance, stakeholders also raised concerns with the impact the decision could have on employers’ hiring and employment decisions as well as any diversity, equity and inclusion (DEI) programs or initiatives. Today’s decision to strike down race-based affirmative action in admissions practices could leave employers open to future legal challenges against their hiring decisions and other diversity programs.

    CUPA-HR strongly supports the need to create and sustain diverse, inclusive college and university communities. We’re disappointed that the Supreme Court’s action has limited our efforts. CUPA-HR’s government relations team is further analyzing the decision and will keep members apprised of any additional updates as it relates to these cases.



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