Tag: Threshold

  • $50K threshold for college foreign gift reporting passes House panel

    $50K threshold for college foreign gift reporting passes House panel

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    Dive Brief: 

    • The House Committee on Education and Workforce voted Wednesday to advance a bill that would require colleges to report gifts and contracts valued at $50,000 or more from most foreign countries. 
    • That would lower the requirement from the current threshold of $250,000. Republicans argued that the bill, called the Deterrent Act, is needed to prevent foreign influence in higher education. 
    • The bill would also lower the reporting threshold to $0 for the “countries of concern” as determined by the U.S. Code or the secretary of education, which include China, Russia, Iran and North Korea. The proposal would bar colleges from entering into contracts with those countries unless the secretary of education issues them a waiver and renews it each year. 

    Dive Insight: 

    The Deterrent Act would amend Section 117 of the Higher Education Act, which oversees foreign gift and contract reporting requirements for colleges. Republicans on the education committee argued the measure is needed to provide more transparency. 

    A fact sheet on the bill included concerns about foreign adversaries stealing secrets from American universities and influencing student behavior. 

    The fact sheet also referenced a 2024 congressional report that accused two high-profile research institutions — University of California, Berkeley and Georgia Institute of Technology — of failing to meet the current reporting requirements through their partnerships with Chinese universities. 

    “Higher education is one of the jewels of American society,” said Rep. Michael Baumgartner, a Washington Republican who co-sponsored the bill, on Wednesday. “Unfortunately, it’s also an area that is often under attack and used by malign influences to subvert American interests.”

    Under the bill, colleges would face fines and the loss of their Title IV federal student aid funding if they didn’t comply with the reporting requirements. 

    Democrats largely voiced opposition to the measure. 

    However, they focused many of their complaints Wednesday on the Trump administration’s recent moves that have sparked outcry in the higher education sector, including cuts to the National Institutes of Health’s funding for indirect research costs. A judge temporarily blocked the cuts earlier this week. 

    “I understand and I do appreciate the intent behind the Deterrent Act, but if House Republicans and the president truly want to lead in America, and they want America to lead, they must permanently reverse the cuts to the National Institutes of Health,” said Rep. Lucy McBath, a Democrat from Georgia. “It’s not enough for us just to wait outside for the lawsuits to protect folks back home from damaging and possibly illegal orders like these.”

    Virginia Rep. Bobby Scott, the top-ranking Democrat on the committee, struck a similar tone, referencing the Trump administration’s goal of eliminating the U.S. Department of Education. 

    He noted that the authors of Project 2025 — a wide-ranging conservative policy blueprint for the Republican administration — aim to dismantle the Education Department with the stated goal of having the federal government be less involved in schools. 

    “The argument rests on the perception that the federal government is too involved in our schools, and here we are marking up bills that would give the Department of Education more responsibility to impose unfunded mandates and interfere with local schools,” Scott said. 

    The House committee advanced several other bills Wednesday, including those that would allow schools to serve whole milk and aim to end Chinese influence in K-12 education. 

    House lawmakers previously passed the Deterrent Act in 2023, though it was never put to a vote in the Senate. At the time, the American Council on Education and other higher ed groups opposed the bill, objecting in part to the large fines colleges could face for noncompliance. 

    The Republican-backed bill may face better odds in this congressional session, now that the GOP also controls the Senate and the White House.

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  • Appeals Court Upholds DOL’s Authority to Use Minimum Salary Threshold to Determine Overtime Exemptions

    Appeals Court Upholds DOL’s Authority to Use Minimum Salary Threshold to Determine Overtime Exemptions

    by CUPA-HR | September 12, 2024

    On September 11, the 5th U.S. Circuit Court of Appeals issued a ruling in Mayfield v. U.S. Department of Labor that upholds DOL’s authority to implement a minimum salary threshold to determine exempt status under the Fair Labor Standards Act (FLSA) overtime pay requirements. While the ruling does not answer how other lawsuits challenging the Biden administration’s rule will be decided, the ruling is significant and could help other federal judges determine whether or not to strike down the Biden administration’s increased minimum salary thresholds.

    Background

    The case’s plaintiff, Robert Mayfield, filed a lawsuit against the Trump administration’s overtime rule in August 2022. In his lawsuit, he argued that the FLSA language on overtime exemptions only mentions a worker’s job-related duties and that implementing a salary threshold to determine exempt status exceeds DOL’s statutory authority. The Western District Court of Texas, a lower court where the lawsuit was originally filed, sided with DOL, stating that the agency has the statutory authority to implement the FLSA overtime minimum salary threshold. Mayfield appealed the decision to the 5th Circuit soon after.

    The Decision

    In its decision that sides with the Department of Labor, the 5th Circuit Court held that DOL may use a minimum salary requirement as part of its test for determining whether or not an employee qualifies as an executive, administrative and professional (EAP) employee exempt from the FLSA overtime pay requirements. Notably, the 5th Circuit Court argued that DOL does have statutory authority under the FLSA to use a salary threshold to “define and delimit the terms of exemption.”

    Though the decision allows for DOL to use a minimum salary threshold, the 5th Circuit Court did state that there is a limit to the power granted to DOL to do so. Specifically, the decision states that DOL may only use the minimum salary requirement to the extent that the salary threshold established in the regulations is a reasonable proxy for who is and who is not an EAP employee. They argued that DOL’s power to rely on proxy is not “unbounded” and that the agency “cannot enact rules that replace or swallow the meaning” of the FLSA’s terms that they seek to define.

    Looking Ahead

    Outside of the Mayfield case, there are three pending lawsuits in the Eastern District Court of Texas to challenge the Biden administration’s overtime final rule. That rule implements a two-phase approach to increasing the minimum salary threshold under the FLSA. The first increase took effect on July 1, increasing the minimum salary threshold from the current level of $684 per week ($35,568 per year) to $844 per week ($43,888 per year), and the second increase is set to take effect on January 1, 2025, increasing the minimum salary threshold again to $1,128 per week ($58,656 per year).

    The decision from the 5th Circuit does not have an immediate impact on the lawsuits challenging the Biden administration’s overtime rule, nor does it provide a definitive answer on how lower courts decide in those legal challenges. As such, the Biden administration’s July 1 salary threshold continues to be in effect,* and the second increase to the salary threshold is still set to take effect on January 1, 2025. CUPA-HR will keep members apprised of additional updates related to the FLSA overtime pay regulations.

    *A preliminary injunction to block DOL from enforcing the overtime final rule was placed for public employees in the state of Texas. Private institutions in Texas and all other institutions outside of Texas need to be in compliance with the July 1 salary threshold.



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