Millions of Workers Now Eligible for Overtime
The U.S. Department of Labor just released regulations doubling the salary requirement for executive, administrative and professional “white collar” employees to remain exempt from the overtime requirements of the Fair Labor Standards Act from $23,660 to $47,476 per year. The DOL estimates that this will make 4.2 million employees no longer exempt from overtime requirements, which will lead to $1.2 billion in additional wages paid to workers per year. The regulations also provide for an increase in the salary level every three years. Some employers will respond by raising salary levels, which will have to be addressed every three years. Employers who instead elect to reclassify employees from exempt to non-exempt based on the new regulations will need to carefully consider new policies and training for those employees. Employers also will face new challenges in regular rate calculations, job reclassifications, navigating the possible use of the fluctuating workweek method of overtime compensation, and other compliance issues.
This course will provide an overview of the revised regulations, explain how to comply, and offer solutions for minimizing risk when reclassifying employees.
Recorded during a live webinar in June 2016.