UPDATE: On November 22, 2016 a federal judge in Texas issued a nationwide injunction on this regulation update, meaning that it will not go into effect on December 1. We will continue to monitor the story to see whether that ruling becomes permanent.
FLSA rules update about to kick in
On December 1, 2016, revisions to the Fair Labor Standards Act (FLSA) go into effect. These changes govern the treatment of overtime-exempt ‘white collar’ workers. Most significantly, the minimum compensation thresholds for such employees have been raised significantly – they have nearly doubled. In addition to the compensation changes, this is a good time to review your exempt employees to ensure that the pass the “duties” test (which has not changed). The link below will take you to the Department of Labor’s comprehensive guide for small businesses.
If for any reason you determine that a currently salaried employee will need to begin receiving overtime payments, we recommend simply converting them to hourly employees with 40 default hours per week. That way, should overtime need to be paid, it is an easy addition.
If you need help tracking overtime and maintaining your employees’ attendance record, we have a time and attendance solution to simplify your life! Contact your payroll specialist to receive more information.