Resource for Companies Evaluating Compliance with New Overtime Laws

IMG_5802Many companies are in the process of completing internal audits to prepare for the new salary and overtime rules that go into effect on December 1, 2016. While the changes do not impact the duties-portion of FLSA exemptions, they do change the salary levels for exempt workers and highly compensated employees.

While December sure sounds far away, it is really just around the corner, considering that employees may need to be reclassified, job descriptions updated, and policies modified that could be impacted by the changes (e.g., telecommuting, social media, recording of time).

Recently, I was speaking with a human resources group that had some fantastic questions about the new law and what the changes would require and I came across an equally *fantastic* resource published by the Department of Labor. It answers those burning questions like:

Will the salary level be prorated for part-time employees?  (Spoiler alert: The DOL says, no.  Whether a worker is full-time or part-time, the standard salary level to qualify for exemption will be $913 per week.)

Does the final rule have an impact on the salary basis or hourly rate for computer professionals?  (Spoiler alert: The hourly salary didn’t change but the weekly standard salary has increased.)

When do the “quarterly” catch-up payments take place—is it calendar year? Fiscal quarter? (Spoiler alert: Up to the employer’s discretion to determine the quarter.).

What about a surprise, discretionary holiday bonus, can that be included in a catch-up payment? (Spoiler alert: No.)

Is there still an exemption for outside sales persons? (Spoiler alert: Yes.)

These questions, answers, and more are discussed in detail in this great resource:

Find the Department of Labor’s Handy FLSA Question and Answer Resource here.

About Ashley Kasarjian

Attorney at Snell and Wilmer in Phoenix, Arizona, and publisher of the blog, Employment and the Law.
This entry was posted in DOL, FLSA and tagged , , . Bookmark the permalink.

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