Final Fair Labor Standards Act Regulations - Toolkit Available

Executive Summary

The Regulations

Briefly stated, the final regulations make the following changes:

• The new regulations impact employees exempt under the administrative, executive, professional (excluding doctors, lawyers and teachers) and computer related professional (if the employer is choosing to pay on a salary basis) exemptions.
• The new standard salary threshold for the impacted exemptions identified above is $47,476/year ($913/week).
• Similarly, there has been an increase in the highly compensated employee (HCE) exemption. The final rule increases the annual compensation level to $134,004/year.
• The DOL also established automatic increases every three years to the two salary thresholds, beginning January 1, 2020.
• Employers are allowed to use nondiscretionary bonuses and incentive payments to satisfy up to 10% of the salary in the standard salary test. That is $91.30 per week or $4,747.60/year.

The DOL has issued Fact Sheets and FAQs on the final regulations which can be accessed by clicking here.

The Toolkit

The Employer Toolkit provides tools and resources designed to help you comply with the FLSA and the new regulations including:

·         An overview of our people and technology solutions;

·         A readiness checklist;

·         Instructions on how to generate reports that may help you identify impacted employees;

·         Best practices for reclassifying employees; and,

·         Sample employee communications 

The toolkit is available on FormSource in the Payroll section. To access FormSource, log into My TotalSource, and select the FormSource tab. 

As always, please contact your Human Resources Business partner if you have any questions.