We hope you were able to join our live webcast titled “50 Days to Overtime Compliance - Are You Ready?”
If you were unable to attend our live webcast you can now access it on demand by clicking this registration link. The webcast is designed to help you prepare for the effective date of the new regulations with a strong focus on leveraging our people and technology solutions.
Summary of the New FLSA Regulations
As discussed during the webcast, 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.
These are the most common exemptions but there are several exemptions that do not require payment on a salary basis and are not impacted by the new regulations. For example, employees properly classified under the outside sales exemption or the retail sales or service exemption have no salary level requirements and no action would be needed for these individuals.
- The new standard salary threshold for the impacted exemptions 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 non-discretionary 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 Path to Reducing Your Risk
You can take proactive steps to help ensure compliance with the new FLSA regulations.
1. Review the “Final Changes to the FLSA White Collar Exemptions” employer toolkit which is available through the on-demand webcast mentioned above.
The toolkit contains the following resources:
- An overview of our people and technology solutions;
- A final Regulations Checklist to help your company prepare for the new regulations;
- Instructions on how to generate a report to help you identify those employees who may be impacted by the final regulations;
- Information regarding reclassifying employees and best practices;
- Sample Employee Communications
2. The final regulations are a reminder that compliance with wage and hour laws and regulations can be complicated. In an effort to respond to frequently asked questions, we have partnered with Jackson Lewis P.C. to produce a series of on demand webcasts which can be accessed by clicking the links below. The Toolkit referenced above also includes links to the on-demand videos and these videos can also be accessed by clicking the hyperlinks below (the videos are hosted on an ADP YouTube page). We recommend that you listen to these webcasts if applicable to your company.
We are committed to helping our clients comply with the new regulations. Please do not hesitate to contact the Wage and hour Center of Excellence at Totalsource.FLSA@adp.com or 1-866-400-6011 (option 6) or your Human Resources Business partner if you have any questions.