The salary level test for the Fair Labor Standards Act is rising on December 1 to $913 per week ($47,476 annually.) The duties test and salary basis test are unchanged. This means you must take action by December 1 to review the impact on your organization and make any needed adjustments. Many small organizations do not understand or comply with the duties tests – this can present significant legal and financial risks if an employee or ex-employee reports you to the state wages and hours agency or seeks out an employment attorney. You may have seen legal ads for failure to pay overtime cases on TV in fact.
I did a webinar for the Alexandria SBDC on the new overtime rules – both the webinar and the annotated slides are available free. The webinar or slides can guide your thinking and action planning so that you are ready.
Guidance from the US Department of Labor – https://www.dol.gov/WHD/overtime/final2016/
It is smart to get started now on assessing the impact of the new salary level on your organization, as well as reviewing your compliance with existing duties test rules. This process includes assessing what makes the most sense in terms of your desired or existing culture and extensive communications. Ideas for these areas are included in the webinar and slides.
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