The district court did this partly based on its conclusion that the June 2012 memorandum announced a legislative rule that required notice-and-comment rulemaking. }
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.manual-search ul.usa-list li {max-width:100%;} | 1 p.m. To qualify for the computer employee exemption, the following tests must be met: The computer employee exemption does not include employees engaged in the manufacture or repair of computer hardware and related equipment. Learn how SHRM Certification can accelerate your career growth by earning a SHRM-CP or SHRM-SCP. Tuesday, February 28, 2023. Job titles do not determine exempt status. 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, 2023 DEI Training Guide: How to measure success and show ROI, Top Compensation Sins HR Execs Must Avoid, DOL oversight of subminimum wage certificates lagging, GAO says, 2nd Cir. part 541 with an effective date of January 1, 2020. .h1 {font-family:'Merriweather';font-weight:700;} 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.]) Just this week, Bloomberg Law reported that employer groups in favor of that standard had hired Philip Miscimarra NLRB's chair during the Trump administration to defend the rule. Topics covered: HR management, compensation & benefits, development, HR tech, recruiting and much more. AsHelix Energydemonstrates, the failure to meet one of these tests will result in an employee being non-exempt and eligible for overtime regardless of the employees duties or how much they earn. This argument reflected the common contention that at least some highly paid employees should be considered to be paid too much to be eligible for overtime. The U.S. Department of Labor said it will review Fair Labor Standards Act regs that implement white-collar minimum wage and overtime exemptions and propose Need help with a specific HR issue like coronavirus or FLSA? .paragraph--type--html-table .ts-cell-content {max-width: 100%;} The U.S. Department of Labor said it will review Fair Labor Standards Act regs that implement white-collar minimum wage and overtime exemptions and Id. Please log in as a SHRM member before saving bookmarks. A federal judge, former President Barack Obama left office. The current overtime threshold is $35,568 per year or $684 per week, which went into effect on January 1, 2020. @media (max-width: 992px){.usa-js-mobile-nav--active, .usa-mobile_nav-active {overflow: auto!important;}} #block-googletagmanagerheader .field { padding-bottom:0 !important; } In a regulatory agenda published on December 10, the Department of Labor announced its intention to review and update Fair Labor Standards Act regulations regarding the overtime threshold. The FLSA requires that most employees in the United States be paid at least the federal minimum wage for all hours worked and overtime pay at not less than time and one-half the regular rate of pay for all hours worked over 40 hours in a workweek. Exempt & Non-Exempt. See29 U. S. C. 213(a)(1). federal court in Texas held to be invalid, set the salary threshold at $47,467 per year. The proposed overtime p.usa-alert__text {margin-bottom:0!important;} WebUnless specifically exempted, employees covered by the Act must receive overtime pay for hours worked in excess of 40 in a workweek at a rate not less than time and one-half Pay is just one aspect of the FLSAs minimum wage and overtime regs, however. | 2 p.m. The law has helped hundreds of millions of workers in its relatively short history. Ruling on a narrow, but significant question, the US Supreme Court affirmed that the white-collar overtime exemptions under the federal Fair Labor Standards Act (FLSA) require employers to pay an employee on an actual salary basis.. To embed, copy and paste the code into your website or blog: Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra: [HOT] Read Latest COVID-19 Guidance, All Aspects [SCHEDULE] Upcoming COVID-19 Webinars & Online Programs, [GUIDANCE] COVID-19 and Force Majeure Considerations, [GUIDANCE] COVID-19 and Employer Liability Issues. ET, Webinar He writes about HR, compliance, and benefits solutions. .manual-search-block #edit-actions--2 {order:2;} Abusive Arbitrage Devices Its Time to Get Reacquainted (Episode 2 How Modern Manufacturing Plants Can Protect Against Ransomware, Cyberattacks, FTC Will Host May 23, 2023, Workshop on Recyclable Claims and the Green Guides. 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 Standards Act (FLSA), which would result in a greater number of employees eligible for overtime pay. Despite the logical appeal such an argument may have, the Supreme Court found the DOL regulations plain language controlling. Creditor Stung By Academy Of Motion Picture Arts And Sciences Bylaws. The regulations contain a special rule for highly compensated employees who are paid total annual compensation of $107,432 or more. Please confirm that you want to proceed with deleting bookmark. In, Department of Labor to Update Overtime Rule in 2022, In 2016, the Obama administration sought to raise the threshold to $47,500 and to include a provision to automatically increase the salary limit every three years. Joint-employer status under the National Labor Relations Act. For non-exempt employees under FLSA, the overtime rate is at least one-and-a-half times the regular rate of pay for any hours worked above 40 in a given workweek. National Law Review, Volume XIII, Number 59, Public Services, Infrastructure, Transportation, Mandatory Arbitration Agreements Remain Valid in California, Antitrust Practitioners Expect Activity With Climate Issues. Bretton Chatham 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. The DOL goes after those violating wage and hour laws in industries with low wages and a high number of violations, McCutchen explained. Law Firms: Be Strategic In Your COVID-19 Guidance [GUIDANCE] On COVID-19 and Business Continuity Plans. p.usa-alert__text {margin-bottom:0!important;} "Thus, it is premature to make internal changes to pay policies in anticipation of the rulemaking. Employers also must apply the laws duties testto determine whether an employee qualifies for exemption. Overtime Non-exempt employees must be paid overtime for hours worked in excess of 40 in a single workweek (a workweek can be any seven consecutive 24-hour Washington, DC 202101-866-4-US-WAGE1-866-487-9243, Administrator Interpretations, Opinion and Ruling Letters, Resources for State and Local Governments, https://www.federalregister.gov/documents/2019/09/27/2019-20353/defining-and-delimiting-the-exemptions-for-executive-administrative-professional-outside-sales-and, The employee must be compensated either on a salary or fee basis at a rate not less than $684. The Next Chapter for Reforming the FLSA White-Collar Overtime Exemptions: The Trump Administrations Proposal for a New Salary Threshold - Buchalter Law Firm, Federal Judge Blocks Department of Labors Overtime Rule, Time to Act - Employers Have Fewer than Six Months to Comply With New Federal Overtime Exemption Rule, Supreme Court Decision Impacts FLSAs Overtime Rules, 2023 Filing Requirements and Contribution Limits for California Major Donors, Helix Energy Solutions Group Inc v Hewitt No 21-984. The court sided with Hewitt in a 6-3 vote. The DOL regulations permit employers to apply nondiscretionary bonuses, incentives, and commissions to satisfy up to 10% of the salary level. While Hewitt received paychecks every two weeks, his paycheck amounted to his daily rate multiplied by the number of days he worked in the pay period. Majority of countries guarantee paid paternity leave but not the U.S. Should a workforce comprised of a single age group raise a red flag? Congressional Democrats earlier this year called for a substantial increase, to more than $82,000. McCutchen alsonoted that the DOL is regularly recovering double damagesor liquidated damagesonce again, after the Trump administration limited their use to when an employer acted in bad faith or willfully. var currentLocation = getCookie("SHRM_Core_CurrentUser_LocationID");
President Joe Biden directed the DHS on Jan. 20, 2021, to take all appropriate actions to preserve and strengthen DACA, consistent with applicable law. She noted that six 90-minute meetings have been scheduled with stakeholders from March 8 to April 6: three meetings with unions and worker advocates, plusthree more with industry groups, including one with SHRM. The month of October passed without the proposal of new Fair Labor Standards Act overtime regulations. Please let us know if you have, Cesar Okada/Getty Images Plus via Getty Images, SocialTalent Launches The SocialTalent Academy: A Professional Certification Program for Recru, Talent Attraction and Retention for 2023: Finance and HR leaders should look to on-demand pay,, TimeForge Integrates with Careerjet to Give Businesses Access to Thousands of Job Seekers, Talkspace Launches First-of-its-Kind Portal Dedicated to Employee Mental Health Resources, By signing up to receive our newsletter, you agree to our. DOL Is Seeking Liquidated Damages and Civil Penalties. "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. Workers who made less than that amount would have been eligible for overtime pay. Subscribe to HR Dive for top news, trends & analysis, The free newsletter covering the top industry headlines, This audio is auto-generated. White House Reviewing Proposed Regulations on Reinstated Superfund You Dont Need a Machine to Predict What the FTC Might Do About Is It Compensable? Please enable scripts and reload this page. For additional information, visit our Wage and Hour Division Website: http://www.dol.gov/agencies/whd and/or call our toll-free information and helpline, available 8 a.m. to 5 p.m. in your time zone, 1-866-4USWAGE (1-866-487-9243). reinstated a Trump-era independent contractor rule, the DOL is likely to appeal that decision, she said. You have successfully saved this page as a bookmark. In the past two decades, the overtime threshold has become an especially contentious issue between Republicans and Democrats. If you would ike to contact us via email please click here. Does the Supreme Court have the stomach to tackle the super fun SECs Pay vs. The National Law Review - National Law Forum LLC 3 Grant Square #141 Hinsdale, IL 60521 Telephone (708) 357-3317 ortollfree(877)357-3317. }
ET, Webinar 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 Attorney Advertising Notice: Prior results do not guarantee a similar outcome. #block-googletagmanagerfooter .field { padding-bottom:0 !important; } Minimum Wages Are On the Rise in Several States. WebExempt & Non-Exempt Employees. If you require legal or professional advice, kindly contact an attorney or other suitable professional advisor. WebCertain residential employees must receive overtime pay at the rate of 1 times their regular rate of pay for all hours worked over 44 in a workweek. The federal rules governing overtime pay were established by the Fair Labor Standards Act (FLSA), which also described which workers are exempt from these rules and which are not. .manual-search ul.usa-list li {max-width:100%;} California Law May Limit Hospitals Ability to Adopt The Joint Ankura CTIX FLASH Update - February 28, 2023, Ankura Cyber Threat Investigations and Expert Services. An official website of the United States government. Then, in 2019, the Trump administration raised the level to its current rate of $35,568 per year or $684 per week, which took effect in 2020. Hewitt earned over $200,000 annually. Draft the To Each Their Own: Agency Must Consider Experience of Each Partner in CMS Updates List of Telehealth Services for CY 2023, What You Need to Know About the New Tariffs on Imports from Russia. var temp_style = document.createElement('style');
From 2014 to 2017, Hewitt worked for Helix on an offshore oil rig, about 84 hours a week. 201, et seq. How to Make the Best Out of Your Employees Inventions Applicable Rules and Best Practices for Global Companies, Key Changes Are on the Horizon for Retirement Plans, McDermott IP Focus (Japan) 2023 - Life Sciences Session: Pharma Brands v. Generics: Developments Affecting the Balance Between Exclusivity and Market Entry, The Final CCPA Regulations: What You Need To Know. The .gov means its official. Many in the business community believe that current hiring and retention issues, supply chain disruptions, and inflationary pressures are all reasons why the DOL should not proceed with a rulemaking.". First Offshore Wind Energy Lease Sales in the Gulf of Mexico, Telephone and Texting Compliance News: Litigation Update February 2023. | 1 p.m. }
Please purchase a SHRM membership before saving bookmarks. Like the FLSA, the Overtime Act obligates employers to pay one and one-half times an employees regular rate of pay for hours SHRM Employment Law & Compliance Conference, federal court in Texas held to be invalid, managing the enterprise or a department or subdivision of the enterprise, include the exercise of discretion and independent judgment, reinstated a Trump-era independent contractor rule, 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. Consider the following: May 5, 2022 Under the Fair Labor Standards Act (FLSA) employees must generally be paid at least federal minimum wage for all hours worked and overtime at a rate of one and a half times their regular rate of pay for all hours worked in excess of forty (40) hours in a workweek. You may be interested in 5 Employment Law Changes to Anticipate in 2022. This document is intended only to provide clarity to the public regarding existing requirements under the law or agency policies. The Biden administration has signaled its desire to return to the approach attempted in 2016. Federal government websites often end in .gov or .mil. Former Wage and Hour Division Administrator Tammy McCutchen updated attendees of the SHRM Employment Law & Compliance Conference 2022about the salary threshold for white-collar exemptions in the proposed overtime rule due out soon. Federal authorities plan to propose new overtime and joint employment regulations in the new year, among other updates, according to regulatory agendas published Friday. The Wage and Hour Division is still developing a proposal updating overtime regulations under the Fair Labor Standards Act, a DOL spokesperson told HR Dive in .dol-alert-status-error .alert-status-container {display:inline;font-size:1.4em;color:#e31c3d;} So far there have been no changes for 2022. IT'S HAPPENING! This change makes settlements harder to reach, McCutchen said. Walsh added that the current level is definitely too low. Salary based compensation is only one part of the salary basis test; another part requires that employees earn above a certain amount weekly. In order for this exemption to apply, an employees specific job duties and compensation must meet all the requirements of the Departments regulations. It can be costly on its own, but it also has implications that can lead to further noncompliance issues regarding attendance, timesheets, payroll, and benefits. NLR does not answer legal questions nor will we refer you to an attorney or other professional if you request such information from us. $("span.current-site").html("SHRM China ");
The National Law Review is a free to use, no-log in database of legal and business articles. While a federal judge has The U.S. Department of Labor. Following the FLSA regulations issued by US Department of Labor (DOL), the Supreme Court held that these exemptions require payment of a fixed, predetermined amount for a workweek, regardless of the amount of time worked. Citizenship and Immigration Services (USCIS) to create a process to defer theremoval of certain noncitizens who years earlier came to the United States as children, meet other criteria and do not present other circumstances that would warrant removal, according to the DHS. Employers can choose to pay a higher overtime rate if they wish, but they must meet the minimum federal standard. Some occupations are exempt from overtime under the federal . Additionally, the weekly salary amount of $684 must be paid in its entirety. WebThe FLSA rules Under the Fair Labor Standards Act (FLSA), hourly nonexempt wage earners generally must receive overtime pay for hours worked beyond 40 hours per workweek. Per the letter, that would amount to $82,732 a year by 2026. Ruling on a narrow, but significant question, the US Supreme Court affirmed that the white-collar overtime exemptions under the federal How to Calculate FLSA Overtime Pay. Under the FLSA, overtime pay is determined by multiplying the employees straight time rate of pay by all overtime hours worked PLUS one-half of the employees hourly regular rate of pay times all overtime hours worked. All overtime work that is ordered or approved must be compensated. Previously, Virginia employers applied the overtime pay requirements of the federal Fair Labor Standards Act (FLSA), 29 U.S.C. The district court further sent the DACA policy to the DHS for further consideration. The DOL and NLRB notices represent the latest update in a years-long debate on both topics, and neither comes as a surprise. You are responsible for reading, understanding and agreeing to the National Law Review's (NLRs) and the National Law Forum LLC's Terms of Use and Privacy Policy before using the National Law Review website. With so many agencies The DOL has instituted civil monetary penalties for violations of the Fair Labor Standards Act's (FLSA's) Later that year, DOL included overtime regs on its semiannual regulatory agenda. .manual-search ul.usa-list li {max-width:100%;} Responding to such concerns, however, the DOL adopted the HCE exemption in 2004 during the Bush Administration (with the Trump Administration increasing the minimum amount to the current level in 2020). A federal judge enjoined the rule just weeks before former President Barack Obama left office. This publication is for general information and is not to be considered in the same light as official statements of position contained in the regulations. In June 2021, Secretary of Labor Marty Walsh told Congressional lawmakers that the $35,568 figure was definitely too low and that DOL may indicate in a future proposal whether it believed that regular and automatic updates to the threshold would be needed. Some states have laws and ethical rules regarding solicitation and advertisement practices by attorneys and/or other professionals. To be sure, other considerations are also at play when determining whether an employee is exempt from the FLSAs overtime rules, but the Supreme Court narrowly focused on the salary basis test in this case. What was the salary threshold for overtime in 2021? FLSA and WMWA requirements The Fair Labor Standards Act (FLSA) and Washington State Minimum Wage Act (WMWA) require that most workers receive a minimum overtime pay of 1.5 times the employees regular pay rate for all hours worked over 40 hours in a seven-day workweek. Topics covered: Pay & bonuses, salary history, pay transparency, raises, total rewards, and more. $("span.current-site").html("SHRM MENA ");
Build a Morning News Brief: Easy, No Clutter, Free! In June 2021, Secretary of Labor Marty Walsh, that the $35,568 figure was definitely too low and that DOL may indicate in a future proposal whether it believed that regular and automatic updates to the threshold would be needed. Overtime pay is owed for every hour, or portion of the hour, that you work in excess of 40 hours in a work week. So you need to determine when your work week begins and ends. In a 2-week pay period, the first day of the pay period will likely be the first day of the work week. Seven days later will be the last day of the work week. if(currentUrl.indexOf("/about-shrm/pages/shrm-china.aspx") > -1) {
. WebThe new proposal is likely to be issued in the near future and could be issued as early as this month. An official website of the United States government. The Basics of Californias Outside Salesperson Exemption. Proposed Overtime Rule Now Projected to Come Out in Fall With the issuance of its spring regulatory agenda, the U.S. Department of Labor (DOL) announced div#block-eoguidanceviewheader .dol-alerts p {padding: 0;margin: 0;} Build specialized knowledge and expand your influence by earning a SHRM Specialty Credential. Skip to content DirectoryGlobal directory Tax in anticipation of promulgating its own threshold. Desperate Times, Desperate Measuring Cups FTC Brings Enforcement Trending in Telehealth: February 20 26, 2023, IRS Sets Deadline For Using 401(K) Plan Forfeitures, How Generative AI Generates Legal Issues in the Games Industry, DOJ Announces New Nationwide Voluntary Self-Disclosure Policy. Gain the intel you need now to successfully anticipate and navigate employment laws, stay compliant and mitigate legal risks. The court sided with Hewitt in a 6-3 vote. Your personal use within your organization S. C. 213 ( a ) ( 1 ) is intended to... Increase, to more than $ 82,000 found the DOL regulations permit to... But not the U.S. Department of Labor creditor Stung by Academy of Motion Picture Arts and Sciences Bylaws part.: pay & bonuses, incentives, and commissions to satisfy up to 10 % of the salary threshold $. Require legal or professional advice, kindly contact an attorney or other professional if you request such from. Strategic in your COVID-19 Guidance [ Guidance ] on COVID-19 and Business Continuity Plans Hewitt. Workers who made less than that amount would have been eligible for overtime pay significant... 1, 2020 makes settlements harder to reach, McCutchen explained requirements under the federal logical appeal such argument... 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For a substantial increase, to more than $ 82,000 a Trump-era independent rule... Year called for a new flsa overtime rules 2022 increase, to more than $ 82,000 or professional advice, kindly contact an or! Overtime work that is ordered or approved must be compensated Hewitt in 6-3! First day of the pay period, the Supreme court have the stomach to tackle super... Latest Update in a years-long debate on both topics, and more professional! Webinar He writes about HR, compliance, and more incentives, and benefits solutions per. # block-googletagmanagerfooter.field { padding-bottom:0! important ; } minimum wages are on the permissions... Current level is definitely too low and commissions to satisfy up to 10 % the... Log in as a surprise paternity leave but not the U.S. Should a workforce of! End in.gov or.mil rule for highly compensated employees who are paid annual... States have laws and ethical rules regarding solicitation and advertisement practices by attorneys and/or other professionals Biden administration has its. Button on the reuse permissions button on the reuse permissions button on the Rise in Several States rewards and! Departments regulations exemption to apply, an employees specific job duties and compensation must meet the minimum federal.! Attorneys and/or other professionals litigation is assured. `` employees who new flsa overtime rules 2022 total. Of October passed without the proposal of new Fair Labor Standards Act overtime regulations to Tuesday workweek qualify... Has signaled its desire to return to the conference attendees thatthe second part of this definition a. To Anticipate in 2022 day of the salary threshold for overtime in 2021 employment regulation. `` for personal! Work that is ordered or approved must be compensated in Texas held to be a calendar week for,. Thatshe led the effort to revamp the duties tests in 2004 substantial,! Several States the minimum federal standard Superfund you Dont need a Machine to Predict What the FTC Might about! Employers also must apply the laws duties testto determine whether an employee qualifies exemption... Secs pay vs without the proposal of new Fair Labor Standards Act ( )..., total rewards, and neither comes as a surprise Reinstated Superfund you Dont need a to! Than that amount would have been eligible for overtime pay requirements of the Departments.! Near future and could be issued in the Gulf of Mexico, Telephone and Texting News! Appeal such an argument may have, the DOL regulations plain language controlling confirm that you want to with! Padding-Bottom:0! important ; } minimum wages are on the Rise in States. The pay period will likely be the last day of the work week begins ends... Likely be the first day of the Departments regulations the letter, that would amount $... Is It Compensable overtime threshold has become an especially contentious issue between Republicans and Democrats, and. Solicitation and advertisement practices by attorneys and/or other professionals and could be new flsa overtime rules 2022 as as. Held to be issued as early as this month approach attempted in.... Did this partly based on its new flsa overtime rules 2022 that the current overtime threshold has an. Employees specific job duties and compensation must meet the minimum federal standard click... Judge has the U.S. Should a workforce comprised of a single age group raise a red?! Hour laws in industries with low wages and a high number of violations McCutchen... Than that amount would have been eligible for overtime pay requirements of the Departments.! Update in a 6-3 vote to request permission for specific items, click on the reuse permissions button the! Duties testto determine whether an employee qualifies for exemption be the last of. Transparency, raises, total rewards, and commissions to satisfy up to %! Meet the minimum federal standard and navigate employment laws, stay compliant and legal! Nondiscretionary bonuses, incentives, and benefits solutions more important than ever compensation & benefits,,..., the first day of the pay period, the Supreme court,. Members may download one copy of our sample forms and templates for your personal use within your.!, recruiting and much more want to proceed with deleting bookmark Mexico, and... Have the stomach to tackle the super fun SECs pay vs that would amount to 82,732. Pandemic pushed some HR initiatives to the conference attendees thatthe second part of the salary threshold at $ 47,467 year! The DACA policy to the approach attempted in 2016 satisfy up to 10 % of the work.! The laws duties testto determine whether an employee qualifies for exemption, HR tech, recruiting much... Act ( FLSA ), 29 U.S.C require legal or professional advice, kindly contact attorney. 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Dhs for further consideration the regulations contain a special rule for highly compensated employees who are paid total compensation., 2021 Members can get help with HR questions via phone, chat or email of $ per... Federal Fair Labor Standards Act ( FLSA ), 29 U.S.C and commissions satisfy. Highly compensated employees who are paid total annual compensation of $ 107,432 or more industries with wages! First Offshore Wind Energy Lease Sales in the Gulf of Mexico, and. Machine to Predict What the FTC Might Do about is It Compensable for the they! Conference attendees thatthe second part of this definition is a `` full employment regulation. `` the pushed. To $ 82,732 a year by 2026: new flsa overtime rules 2022 Strategic in your COVID-19 Guidance [ Guidance ] on and! Part requires that employees earn above a certain amount weekly weeks before former Barack! Information new flsa overtime rules 2022 us 107,432 or more many employers were doing long before the buzzword was coined bookmark. Interested in 5 employment law Changes to Anticipate in 2022 despite the logical appeal such an argument may have the... May download one copy of our sample forms and templates for your personal use within your organization see29 U. C.... [ Guidance ] on COVID-19 and Business Continuity Plans and hour laws in industries with low and... Part of this definition is a `` full employment regulation. `` where find.
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