ALL EMPLOYERS SHOULD READ THIS UPDATE – NEW FLSA REGULATIONS ANNOUNCED
Over the last several months, we sent two Employment Law Bulletins warning that significant changes are on the way to FLSA regulations related to the minimum salary and compensation levels for exempt Executive, Administrative and Professional workers. Today, the DOL announced the Final Rule modifying these regulations.
Below are some important changes:
If you have an exempt employee earning less than $47,476 per year, important decisions must be made before December 1. In particular, employers need to determine whether to increase a given employee’s minimum compensation to maintain exempt status or switch the employee to non-exempt status. If an employer switches an employee to non-exempt status, the employer needs to decide how it will set the hourly rate. And for employees regularly working more than 40 hours, employers will need to think about the financial impact of overtime pay.