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Summary: Do The FLSA Changes At Work

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Do the FLSA changes matter? According the US DOL Wage & Hourly Division in 2015 over 21,000 cases were reviewed resulting in over $175 million in additional wages due employees. The FLSA changes in the overtime requirements will affect approximately 4.2 million workers that will either become eligible for overtime protection or have their salary increased to comply with new overtime guidelines. Workers may experience other changes in addition the overtime requirements. Businesses will likely be more restrictive in monitoring actual hours worked showing less flexibility in workers’ schedules. In addition many companies are expected to reclassify employees’ status from Exempt to Non-Exempt. Companies must prepare for the impact that …show more content…

o Realign work schedules and ensure that employees do not work more than 40-hours per week. This solution may require hiring of additional staff to meet deadlines and work requirements. o Reduce employees wages ensuring an hourly rate is consistent with established budget given overtime hours worked. (Certainly not the recommended solution, but in some instances may be necessary for smaller businesses to maintain strict budget guidelines). • Educate management on changes and communicate changes to employees ensuring that employees know how the changes will affect them personally. • Implement changes by ensuring that the tools are in place to ensure accurate tracking of hours worked. Update current policies to clearly communicate overtime practices and policies with employees. Burden of responsibility for accurate tracking of hours worked fall on the Employer. Recognizing that the FLSA overtime changes will obviously put additional burdens on smaller to medium sized company, organizations must avoid the tendency to take short-cuts or action to avoid compliance. To avoid potential liability companies …show more content…

Federal law requires companies to time tracking records for 3 years. Some states and local law may required longer periods. Make time tracking software available to individuals that work remotely, have alternative work schedule or are telecommuters. Are there exemptions from the new overtime regulations? Unlike many other labor laws that exempt employers with smaller work forces, the Overtime change is not dependent on company size. Clear exemptions to the new overtime rules are those considered “Learned Professionals” which are professionals requiring advance training such as Teachers, Lawyers, Doctors, Creative Professionals, as well as Outside Sales. According to the DOL Small Entity Compliance Guidelines, under the overtime reform, employers can use nondiscretionary bonuses and incentive payments (including commissions) to satisfy up to 10 percent of the standard salary level amount. Such payments must be paid on a quarterly or more frequent basis to count towards the salary level test. If an employee does not earn enough of a nondiscretionary bonus or incentive payment in a given quarter to meet the standard salary level, an employer may make a “catch-up” payment no later than the next pay period after the end of the quarter. Any such “catch-up” payment counts only toward the prior quarter’s

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