The FLSA Overtime Rule Change Effective December 1, 2016!
As of December 1, 2016, 4.2 million salaried employees may qualify for overtime pay based on the changes taking effect under the Fair Labor Standards Act (FLSA). On May 16, 2016, President Obama and Secretary of Labor Thomas E. Perez announced the Final Rule that will automatically extend overtime pay to millions of employees. There were extensions to the effective date but December 1st is it! The ruling updates the salary and compensation levels to exempt executive, administrative and professional workers and changes the salary basis test to include nondiscretionary bonuses and commissions.
What are some of the changes?
What qualifies as an exempt employee?
The default employee classification is nonexempt. To qualify as an exempt employee you must pass three criteria: salary basis, salary level, and job duties. The FLSA changes affect the salary level criteria of the test.
To understand the details of the rule and to understand how it may impact you as and employee or employer, you can visit the United States Department of Labor and your State’s DOL.
As an employer, you will need to understand how the changes will affect your business and how you can protect yourself from wage and hour lawsuits. It is of vital importance that you have written employment policies and procedures that take into account the FSLA changes. JD Management Advisory is ready to help you prepare for the deadline.
There are many resources available to assist business and you can visit Reousrces4B to link to our recommendations and we invite you to submit yours.