As you may know, the Department of Labor issued final Fair Labor Standards Act regulations today, which substantially increase the salary level at which an employee must be paid to qualify for most overtime exemptions. Under these new regulations, most employees making less than $47, 476 per year ($913/wk) must be treated as non-exempt and are, therefore, eligible for overtime. These regulations take effect on December 1, 2016, so employers need to be aware of these new requirements now and make necessary changes prior to the effective date.
This session will include:
- A summary/reminder of the criteria that must be met to classify an employee as exempt from overtime and potential damages and other ramifications if an employee is misclassified
- An explanation of the new regulations released today
- A discussion of the practical implications employers must now consider, including:
- Whether to increase an employee’s salary to meet the new salary level requirements or reclassify the employee as non-exempt
- What payment options are available for employees reclassified as non-exempt
- How to avoid timekeeping pitfalls for employees reclassified as non-exempt
- What to do when some employees working in a position are earning more than the new salary level while other employees working in that same position are earning less than the new salary level
- How to communicate with employees being reclassified
- Using these new regulations to reclassify employees who may not qualify as exempt because of a failure to satisfy the duties requirements for exempt status
- Stacie Collier, Partner
- Andrew Prescott, Partner
This course is eligible for 1.5 CLE and HRCI credits. See details here.