Changes to the Fair Labor Standards Act are currently set to take place on July 1, 2016. Probably the most prominent part of the bill stipulates that the minimum salary an employee must earn to be considered exempt from FLSA overtime rules is now $50,440 (up from $23,660). Bloomberg BNA is reporting that the final rule is setting the new salary limit at $47,000. Either way, this is quite a change from what the limit was before. To know how this affects you, please review the attached guide for the updated rules.
- Identify all of your salaried employees and their pay rates.
- If raising their salary is not feasible, moving them to an equal hourly rate will be necessary.
- Consider a timekeeping solution to track hours.
- Increased time management may be necessary.
- Make sure to pay anyone who works over 40 hours in a work week at the overtime rate
- Check your state laws in comparison to these new rules. You must follow whatever law benefits the employee more.
While our office does not offer legal or HR advice, we have tools for our clients to help navigate these changes. Please contact our office with questions.
Download the Federal guide here