PREP NOW

As you probably know, the Department of Labor (DOL) is again proposing revised federal overtime rules, which are out for review and comment. The proposed salary threshold for white-collar exemptions would rise to $35,308. 
 
In preparation, you would do well to review your job and employee classifications now to confirm exempt or non-exempt status to determine which positions and employees will result in pay and/or classification changes. This review should begin now since FLSA criteria other than the pay threshold are expected to remain unchanged and since the DOL is expected to move quickly when the changes are approved and effective.
 
In addition to the dollar threshold test, employees must perform certain duties to be classified as exempt from overtime pay under the Fair Labor Standards Act's executive, administrative, and professional definitions. Employees in positions that do not meet the duties tests must be paid one and a half times their regular rate for hours worked beyond 40 in a workweek.
 
Employees whose total compensation is now at least $100,000 a year are considered highly compensated and are eligible for exempt status if they meet a reduced duties test:

-Employee's primary duty must be office or non-manual work.
-Employee must customarily and regularly perform at least one of the bona fide exempt duties of an executive, administrative, or professional employee.
-The $100,000 pay level may change with other FLSA revisions. 
 
Definitions of exemption and non-exemption are often misunderstood as is the process of applying the duties test in combination with the salary threshold.
 
As you review your exempt and non-exempt jobs and employees to determine what changes will affect how positions and people are classified and paid, please call us if you have questions or need assistance: 610-869-4494.
 
SCCCC Member Blogger:
HRA Services, Inc.
Ph. (610) 869-4494 
FAX (610) 869-4427
E-mail David Martin

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