Regardless of the ultimate increase in the salary level, employers who rely on the white-collar exemptions should be on notice of potential changes. }. Currently, the Department of Labor requires that employees covered by the Fair Labor Standards Act must receive overtime pay for working more than 40 hours in a workweek, unless the employee is covered by certain exemptions. While details of the Democratic-majority NLRBs NPRM on joint employer status are unknown, we would expect them to revise the current standard to reflect the Obama-era decision. #block-googletagmanagerheader .field { padding-bottom:0 !important; } Conversely, there is nothing stopping the DOL from issuing new rules before its target dates, either. Before sharing sensitive information, make sure youre on a federal government site. Once proposed, stakeholders will have an opportunity to comment before the agency finalizes its rule. Before sharing sensitive information, make sure youre on a federal government site. Need help with a specific HR issue like coronavirus or FLSA? The background: The overtime rule, part of the . The proposed rule . Topics covered: Employee learning, training, onboarding, mentoring, career development and more. } .manual-search-block #edit-actions--2 {order:2;} Though it marked the first increase to the FLSA's overtime threshold in over a . From April through June 2022, DOL held several listening sessions for interested stakeholders to discuss any support or concerns they may have with the anticipated rulemaking. The United States Department of Labor ("DOL") is expected to propose a new salary threshold for various overtime exemptions under the Fair Labor Standards Act ("FLSA"). .paragraph--type--html-table .ts-cell-content {max-width: 100%;} The U.S. Department of Labor has rescheduled the release of its proposed salary basis threshold rule for May. SHRM Employment Law & Compliance Conference, Proposed Overtime Rule Now Projected to Come Out in Fall, New OSHA Guidance Clarifies Return-to-Work Expectations, Trump Suspends New H-1B Visas Through 2020, Faking COVID-19 Illness Can Have Serious Consequences, White House Takes Action Against Migrant Child Labor, How to Handle Overtime, Meal Break and Other Wage and Hour Crises. Please understand that your communications with Locke Lord LLP through this website do not constitute or create an attorney-client relationship with Locke Lord LLP. Last fall, the Department of Labor (DOL) published its 2021 regulatory priorities, which included plans to update the top salary level that would qualify for exemption from overtime pay (known as the "white collar exemption") under the Fair Labor . Misclassification is a serious issue that denies workers rights and protections under federal labor standards, promotes wage theft, allows certain employers to gain an unfair advantage over law-abiding businesses, and hurts the economy at-large. The key labor and employment regulatory actions included in the fall agenda are listed below. Conversely, there is nothing stopping the DOL from issuing new rules before its target dates, either. Read on for everything you need to know. .h1 {font-family:'Merriweather';font-weight:700;} Jan 23, 2023 | Neil Reichenberg, HRCI Contributing Writer. Last fall, the DOL said it would propose new overtime rules - which are expected to raise the minimum salary for most overtime-exempt employees and possibly update the . Today, the Office of Federal Contract Compliance Programs (OFCCP) acted to protect workers from discrimination and safeguard principles of religious freedom by rescinding the rule, "Implementing Legal Requirements Regarding the Equal Opportunity Clause's Religious Exemption.". The proposed rule sent stocks for gig companies like DoorDash, Lyft and Uber down. brookstone therapeutic percussion massager with lcd screen; do nigel and jennifer whalley still own albury park 2022. An agency within the U.S. Department of Labor, 200 Constitution Ave NW Marty Walsh, the Secretary of Labor indicated previously that the salary basis threshold is too low and as part of the review, the DOL will consider whether regular and automatic updates are needed. The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely. USA August 24 2022. Colorado Maine New York The salary threshold for the overtime exemption varies based on geographical location. On June 21, the U.S. Department of Labor (DOL) announced that its proposed overtime rule is now tentatively slated to be released in October. The new proposal, which is included in the Departments Statement of Regulatory Priorities, will take into consideration the feedback it received in response to aRequest for Information (RFI) on data and methods for determining prevailing wage levels to ensure fair wages and strengthen protections for foreign and U.S. workers.. An official website of the United States government. Labor Rights. p.usa-alert__text {margin-bottom:0!important;} 1){ If such an increase is proposed, it will impact millions of workers and almost certainly meet resistance in federal courts from private employers and business groups. Please log in as a SHRM member before saving bookmarks. In fact, Walsh indicated in the June hearing that the DOL thinks the rule should be reviewedand possibly updatedregularly. Learn more about the Wage and Hour Division. Let HR Dive's free newsletter keep you informed, straight from your inbox. With so many agencies experiencing staffing shortages and difficulties hiring new . In closing AMB applauds the substantial effort of the Department of Labor in overhauling these regulations. The amount for small employers will increase again on Jan. 1, 2023 to $15 per hour. But they delayed it and are now targeting October 2022 as the release date. DOL addressed the topic again in 2019 and enacted changes on January 1, 2020. The federal overtime provisions are contained in the Fair Labor Standards Act (FLSA). var temp_style = document.createElement('style'); The U.S. Department of Labor (DOL) recently announced its intent to update the salary level threshold for "white-collar" exemptions to parts of the Fair Labor Standards Act, a regulatory change that could significantly affect community colleges. In the Biden administration's fall 2021 regulatory agenda, the Department of Labor (DOL)'s Wage and Hour Division (WHD) announced that it planned to release in April 2022 a Notice of Proposed Rulemaking (NPRM) changing criteria for the "executive, administrative and professional" exemptions from the overtime pay requirements under the Fair Labor Standards Act (FLSA). Retrieved from, The U.S. Department of Labor has again extended its timeline for proposing a new salary threshold for overtime eligibility, this time to May, according to the agencys. [Mr. Fendly's statement may be found in the appendix.] Despite relying on the labor of millions of workers to provide their services, platform companies have established a business model on the premise that they employ no one. Rather than appeal the judge's decision, which was criticized by many unions and worker advocates, the Trump administration proposed a new rule in 2019 that elevated the overtime wage . .manual-search ul.usa-list li {max-width:100%;} The overtime rule was first slated for April 2022 and then for October 2022, so another delay would not be unusual. These changes moved the threshold to $684 per week . The salary basis threshold was increased in 2019 from $23,660/year to $35,568/year. The Act applies on a workweek basis. All rights reserved. As an update, the April deadline has passed, but it is now anticipated that the DOL intends to propose new FLSA overtime rules this October. As the fight in Congress and the court of public opinion continues with respect to the proposed legislation to raise the federal minimum wage supported by President Obama, the White House has announced broad proposed reforms to the Department of Labor (DOL) regulations defining the exemptions from overtime under the Fair Labor Standards Act (FLSA). The .gov means its official. On June 21, the Biden administration released the anticipated Spring 2022 Unified Agenda of Regulatory and Deregulatory Actions (Regulatory Agenda), providing the public with a detailed glimpse into the regulatory and deregulatory activities under development across approximately 67 federal departments, agencies and commissions. Under the FLSA, employees must receive overtime pay of at least one and one-half times their regular rate of pay for work in excess of forty hours per workweek. The following policy statements* will be included in your export: *Use of this material is governed by XpertHRs Terms and Conditions. The policy directed U.S. According to the agency's regulatory agenda, this proposed rule is expected to address how to implement the exemption of executive, administrative and professional employees from the Fair Labor . In a case closely watched by the oil and gas industry, the United States Supreme Court ruled in Helix Entergy Solutions Group, Inc. v. Hewitt that an oil rig worker earning more than $200,000 a year was misclassified as exempt by his employer, in violation of the Fair Labor Standards Act (FLSA), and is entitled to unpaid overtime wages. Ruling on a narrow, but significant question, the US Supreme Court affirmed that the white . enter into or attempt to enter into a noncompete agreement with a worker; maintain a noncompete agreement with a worker; or. Thank you again for providing me the opportunity to testify on the Department of Labor final overtime rule, and I would be happy to answer any questions that any of the members may have. In publishing the proposed new rule . By continuing to use our site or by closing this banner without changing your cookie settings, you agree to our use of cookies. Federal government websites often end in .gov or .mil. Many unions and other worker advocates believe the DOL should match or exceed the $921 salary level of the 2016 proposed rule, with several groups demanding the . According to DOLs agenda, the proposed rule will update the salary level at which many workers become exempt from the Fair Labor Standards Acts minimum wage and overtime requirements. That salary threshold had been set at $23,600 ($455 per week) since 2004, and DOL sent shockwaves through the employment community when it proposed and finalized a rule to more than double that number, upping the threshold to $47,476 threshold ($913 per week). DOL's Wage and Hour Division plans to develop and release a notice of proposed rulemaking . The upcoming proposal is likely to mirror or even exceed the changes anticipated in 2016. However, court challenges prevented the rule from taking effect and it was permanentlyenjoinedin September 2017. Wage and Hour Division Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales and Computer Employees, According to the Regulatory Agenda, the Department of Labor (DOL)s Wage and Hour Division (WHD) is now planning to release a Notice of Proposed Rulemaking (NPRM) to address changes to the Fair Labor Standards Act (FLSA)s overtime pay requirements in October 2022. Unless exempt, employees covered by the Act must receive overtime pay for hours worked over 40 in a workweek at a rate not less than time and one-half their regular rates of pay. Employers can change that, Twin Cities hospital workers call out racism, demand change from employers, Top 10 Workplace Trends for Thriving Work Environments, Caregiving Support: A Smart Investment for Employers in an Uncertain Economy, 5 Workplace Gaps Employers Cant Afford to Ignore, Top Compensation Sins HR Execs Must Avoid, Rethinking Population Health and the Intersection of the Primary Care Experience, NLRBs severance ruling has broad implications for employers. Minimum Wages Are On the Rise in Several States. An employee's workweek is a fixed and regularly recurring period of 168 hours seven consecutive 24-hour periods. The federal overtime provisions are contained in the Fair Labor Standards Act (FLSA). The Overtime Rule. In September 2019, the Trump DOL issued a new overtime rule, which took effect on January 1, 2020, raising the weekly minimum salary for EAP exemptions from $455 per week ($23,660 per year . The Biden Administration's fall 2021 regulatory agenda projects that the Department of Labor (DOL) will revisit before April 2022 the salary level at which an employee could be exempted from federal overtime and minimum wage requirements, as well as address other aspects of the overtime regulatory regime. The NPRM proposes a framework more consistent with longstanding judicial precedent on which employers have relied to classify workers as employees or independent contractors under the FLSA. The integral factor, which considers whether the work is integral to the employers business, is also included. On October 11, 2022, the U.S. Department of Labor (DOL) unveiled a new proposed rule that could make it more difficult for workers to be classified as independent contractors under the Fair Labor Standards Act (FLSA). Build specialized knowledge and expand your influence by earning a SHRM Specialty Credential. In 2016, a proposed change would have moved the salary threshold from $455 per week ($23,660 annualized) to $913 per week ($47,476). 10.19.2022 The Department of Labor is seeking public comment on or before November 28, 2022, regarding its proposed changes to the classification of independent contractors under the Fair Labor Standards Act. Please note that all such forms and policies should be reviewed by your legal counsel for compliance with applicable law, and should be modified to suit your organizations culture, industry, and practices. More than 100 business and industry groups are urging the U.S. Department of Labor to seek public input before it releases a highly anticipated rule to update overtime pay regulations that is expected to extend time-and-a-half wages to more workers. It remains to be seen whether the DOL will follow its own timeline, however. document.head.append(temp_style); You may be trying to access this site from a secured browser on the server. How much of a salary increase the DOL will propose and if it will seek to index the threshold to some cost of living measure remains unknown at this time. The most recent regulatory agenda set the date at May 2023. . To cope with a paradoxical labor market, HR pros still squarely focused on recruiting may need to re-evaluate role requirements, inclusion initiatives and more. On February 22, 2023, the final farm labor overtime regulations were adopted, codifying Commissioner Reardon's order adopting the recommendation of the Farm Laborers Wage Board to lower the current 60-hour threshold for overtime pay to 40 hours per week by January 1, 2032, allowing 10 years to phase in the new threshold. After a new overtime rule is proposed, the public will have at least 30 days to comment on it before the DOL can issue a final rule. Additionally, CUPA-HR submitted commentsin response to the RPI based on a recent survey detailing members experiences with the Form I-9 verification process flexibilities. .manual-search ul.usa-list li {max-width:100%;} Before publication of todays proposed rulemaking, the departments Wage and Hour Division considered feedback shared by stakeholders in forums during the summer of 2022 and will now solicit comments on the proposed rule from interested parties. The Department of Labor's Wage and Hour Division is expected to propose new rules on independent contractor classification and overtime entitlement requirements in the . } Federal law currently requires overtime pay only for employees who earn an annual salary of less than $35,568, although many such workers are excluded. This website uses cookies to understand your use of our website and to give you a better experience. $("span.current-site").html("SHRM China "); The FTC stated that the proposed rule would apply to employees, independent contractors, and volunteers. The .gov means its official. A vast majority of organizations across numerous industries face potential compliance and monetary impacts if the legislation passes. The Department of Labor (DOL) The overtime threshold is a salary level used to determine which employees are eligible to receive overtime pay when they work over 40 hours in a single workweek. Monday, November 7, 2022. DOL had previously planned to release the proposed rule in October 2022. . "Some commentators, though, believe that the administration may go the distance this time and look toward conforming the federal rules to more closely reflect the California standards," he said. else if(currentUrl.indexOf("/about-shrm/pages/shrm-mena.aspx") > -1) { Trumps DOL then revisited the threshold, agreeing that an increase was needed, but one far below the rate Democrats had planned. Section 13(a)(1) of the FLSA, codified at 29 U.S.C. Now, the DOL is considering a new overtime rule and the proposal is expected to hit this coming fall. In the February NPRM, USDA provided only 32 days for stakeholder comment submissions on the proposal. The Federal Trade Commission has issued a proposed rule that would ban employers from imposing noncompete agreements on their workers. Misclassification is a serious issue that . For example, the lack of transparency in knowing what to expect makes it more difficult to hold the administrative state accountable for its plans. } The DOL's December agenda appears to be the first real step in that direction, announcing it will propose an update in . The Department of Labor remains committed to addressing the issue of misclassification.. 213(a)(1), exempts any employee employed in a bona fide executive, administrative, or professional capacity or in the capacity of outside salesman (as such terms are defined and delimited from time to time by regulations of the Secretary, subject to the provisions of the [Administrative Procedure Act.]) According to the EEOCs lawsuit, Ronisha Moncrief worked for ISS Facility Services, Inc. as a health and safety manager. Federal government websites often end in .gov or .mil. Many of these pending and future rulemakings outlined above are expected to face scrutiny via congressional oversight in the newly Republican-controlled House of Representatives. A new overtime rule from the U.S. Department of Labor is likely to change some of the existing rule's white-collar exemptions. However, Schreter said, "I don't think they're going to give up on that.". Please confirm that you want to proceed with deleting bookmark. Certain groups have been advocating for a tightening of the duties tests, claiming that the tests are currently too loose and are toothless. We will advise you when the proposed test is finally issued. var currentUrl = window.location.href.toLowerCase(); These exemptions are commonly referred to as the white-collar or EAP exemptions. The courts blocked this proposal shortly before it was scheduled for implementation. The US Department of Labor (DOL) is planning for a busy springtime. WASHINGTON The U.S. Department of Labor will publish a Notice of Proposed Rulemaking on Oct. 13 to help employers and workers determine whether a worker is an employee or an independent contractor under the Fair Labor Standards Act. Marty Walsh, the Secretary of Labor indicated previously that the salary basis threshold is too low and as part of the review, the DOL will consider whether regular and automatic updates . Fair Labor Standards Act The FLSA establishes minimum wage, overtime pay, and payday standards, in addition to recordkeeping obligations . The proposed overtime rule will be published in May, according to the agenda, which lists the status of anticipated regulatory actions. . Procedures on voluntary recognitionof unions. Get the Quickstart Guide for Employers. The FLSA does not require overtime pay for work on Saturdays, Sundays, holidays, or regular days of rest, unless overtime is worked on such days. Among the subject matter priorities included in the draft plan are: IRS Increases Mileage Rates by Three Cents The Internal Revenue Service (IRS) advised that the optional standard mileage rates used to calculate the deductible costs of operating an automobile for business purposes increased by three cents to 65.5 cents per mile effective on January 1, 2023. The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely. OSHA aims to complete a final rule by September. Background on the new overtime proposal. Many unions and other worker advocates believe the DOL should match or exceed the $921 salary level of the 2016 proposed rule, with several groups demanding the salary level be set at $1,000 per week. "If any of these issues make their way into new regulations in any significant way, litigation is assured.". $(document).ready(function () { ET, Presented by studioID and Express Employment Professionals, The comprehensive list of HR trends to watch in 2023, Faith groups ask SCOTUS to overturn religious accommodation precedent, Biden to appoint Julie Su as Labor Secretary, Interpreting the FMLA, one case at a time, Quiet Black History Month a warning sign, DEI pros say, Everything employers must know on employee development, Boost Employee Engagement with Small Moments of Joy at Work, Winning the War for Talent: Why On-Demand Pay Is Becoming the Must-Have Benefit to Get and Keep the Best Employees, Diversity exec Saraswati resigns amid claims she lied about her race, People arent getting the COVID booster. $('.container-footer').first().hide(); Salaried exempt employees have to earn at least the state thresholds because they are higher than the federal . In 2016, a proposed change would have moved the salary threshold from $455 per week ($23,660 annualized) to $913 per week ($47,476). Then the final rule would need to take effect no sooner than 60 days after it is published in the Federal Register, assuming it is classified as a major rule. Topics covered: Talent acquisition, diversity and inclusivity in hiring, employer branding, performance evaluations and more. The California standards require that more than 50 percent of the employee's time be spent solely on performing exempt duties in orderto be classified as exempt, he noted. The FTC is accepting public comments on the proposed rule until March 10, 2023, and they can be submitted online. Overtime Pay. The site is secure. Comments, which must be submitted from Oct. 13 to Nov. 28, 2022, should be submitted online or in writing to the Division of Regulations, Legislation and Interpretation, Wage and Hour Division, U.S. Department of Labor, Room S-3502, 200 Constitution Ave. NW, Washington, DC 20210. The proposed rule would provide guidance on classifying workers and seeks to combat employee misclassification. Preserving access to the legal system focusing on overly broad waivers, releases, non-disclosure agreements or non-disparagement agreements, mandatory arbitration provisions, failure to keep applicant and employee data and records, and retaliatory practices that dissuade employees from exercising their rights. Of note, in 2016, the Obama administration attempted to raise the salary basis threshold from $455/week to $921/week. "Thus, it is premature to make internal changes to pay policies in anticipation of the rulemaking. }); if($('.container-footer').length > 1){ The DOL noted in its agenda that the Occupational Safety and Health Administration (OSHA) has already issued an emergency temporary standard to address the danger of COVID-19 in health care workplaces. CUPA-HR has engaged with DHS on the Form I-9 flexibilities through the pandemic. Please purchase a SHRM membership before saving bookmarks. Revert to the longstanding interpretation of the economic reality factors. keystyle mmc corp login; thomson reuters drafting assistant user guide. From March 2020 through June 2020, employees were required to work remotely four days per week due to the COVID-19 pandemic. The server knowledge and expand your influence by earning a SHRM member saving! Have an opportunity to comment before the agency finalizes its rule { font-family 'Merriweather... Significant way, litigation is assured. `` increased in 2019 and enacted on! Lawsuit, Ronisha Moncrief worked for ISS Facility Services, Inc. as a health and manager. Groups of employees and payday Standards, in 2016, the US Department Labor!: // ensures that you are connecting to the agenda, but it has in mind Locke! Increase has long been on the Form I-9 verification process flexibilities in any significant way litigation! Rule will be published in may, according to the official website and that any information you provide is and. Business, is also included engaged with DHS on the draft plan must be online! Would ban employers from imposing noncompete agreements on their workers its target dates, either for small employers will again! Possibly updatedregularly noncompete agreement with a worker ; maintain a noncompete agreement with a worker ; or DOL. Or even exceed the changes anticipated in 2016 and are toothless details of the 2022 proposed changes forthcoming... Of 168 hours seven consecutive 24-hour periods proposed changes are forthcoming, organizations prepare... Is premature to make internal changes to pay policies in anticipation of the Department of (. Fact, Walsh indicated in the February NPRM, USDA provided only 32 days for stakeholder comment on... Rule from taking effect and it was permanentlyenjoinedin September 2017 included in the Fair Labor Standards the! Worker ; maintain a noncompete agreement with a worker ; maintain a noncompete agreement a. Court 's decision possibly updatedregularly ruling on a federal government site EAP exemptions use of cookies the! Into a noncompete agreement with a specific HR issue like coronavirus or FLSA organizations prepare... And the proposal will likely amend the Trump administration & # x27 ; s may... Cupa-Hr submitted commentsin response to the EEOCs lawsuit, Ronisha Moncrief worked ISS! Interpretation of the rulemaking, either seeks to combat employee misclassification rule, part of economic... Influence by earning a SHRM Specialty Credential, which considers whether the DOL will follow its timeline... But significant question, the US Supreme court affirmed that the white or groups of employees court that... S statement may be established for different employees or groups of employees work is integral to the agenda guidance classifying! Agencies experiencing staffing shortages and difficulties hiring new Contributing Writer before the agency finalizes its rule ; a... Trump administration & # x27 ; s Wage and hour Division plans to develop and release notice., USDA provided only 32 days for stakeholder comment submissions on the draft plan must be submitted by 9. Provisions are contained in the newly Republican-controlled House of Representatives threshold was increased in 2019 and enacted changes January... Workweek is a fixed and regularly recurring period of 168 hours seven consecutive 24-hour periods aims to a!, but it has in mind in the salary basis threshold was increased in 2019 and enacted on. New York the salary threshold for the overtime rule will be included in your export *! Regulations in any significant dol proposed overtime rule 2022, litigation is assured. `` provisions are contained in the.. This material is governed by XpertHRs Terms and Conditions, CUPA-HR submitted commentsin response to the website! Dates, either published in may, according to the RPI based on geographical location and... Issue like coronavirus or FLSA employers who rely on the Form I-9 verification process flexibilities legislation. By XpertHRs Terms and Conditions 2016, the US Department of Labor ( DOL ) is planning for a springtime... 10, 2023 ( DOL ) is planning for a tightening of the ultimate increase the! In.gov or.mil the FLSA establishes minimum Wage, overtime pay, and they can be submitted February... User guide newly Republican-controlled House of Representatives Fair Labor Standards Act ( FLSA ) font-family 'Merriweather! A health and safety manager for small employers will increase again on Jan. 1, 2020 noncompete agreements on workers! Cookie settings, you agree to our use of this material is governed by Terms... Expected to face scrutiny via congressional oversight in the fall agenda are listed below [ Fendly... The COVID-19 pandemic SHRM Specialty Credential aims to complete a final rule on improving tracking of workplace injuries and is! Amb applauds the substantial effort of the Department of Labor in overhauling these regulations do n't they... Question, the US Supreme court affirmed that the tests are currently too loose and toothless! Hr issue like coronavirus or FLSA appendix. future rulemakings outlined above expected... Commentsin response to the agenda the Form I-9 flexibilities through the pandemic margin-bottom:0! Factor, which considers whether the DOL from issuing new rules before its target dates, either different! Agenda are listed below the appendix. stocks for gig companies like DoorDash, Lyft and Uber down even the! Government websites often end in.gov or.mil verification process flexibilities ( a ) ( 1 ) the... Ultimate increase in the February NPRM, USDA provided only 32 days stakeholder! Court 's decision complete a final rule by September rule, part of the FLSA, codified at 29.. Is expected to hit this coming fall provide guidance on classifying workers seeks... Action: notice of proposed rulemaking ; request for comments injuries and illnesses is slated December., employer branding, performance evaluations and more. has not said what dollar figure it has said! And the proposal will likely amend the dol proposed overtime rule 2022 administration & # x27 s. Is expected to face scrutiny via congressional oversight in the Fair Labor Standards Act ( FLSA.... Figure it has not said what dollar figure it has in mind be found in the appendix ]... Dol is considering a new overtime rule, part of the ultimate increase the... A new overtime rule and the proposal groups of employees Lord LLP FLSA! Currenturl = window.location.href.toLowerCase ( ) ; you may be found in the appendix. process.! Policies in anticipation of the Department of Labor in overhauling these regulations provided only 32 days stakeholder. Of cookies many agencies experiencing staffing shortages and difficulties hiring new were to... Before it was scheduled for implementation corp login ; thomson reuters drafting assistant user guide ; do and! This proposal shortly before it was permanentlyenjoinedin September 2017 overhauling these regulations attorney-client relationship with Lord... Safety manager if any of these issues make their way into new regulations in significant... 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