Tick Tock! The Dec. 1, 2016 effective date for changes under the Fair Labor Standards Act will soon be here, and there is plenty to do in order to prepare.
As you may know, the new regulations have increased the minimum threshold of compensation for exempt employees from $23,660 annually and $455 weekly to $47,476 annually and $913 weekly.
While the “duties” tests for the white collar exemptions have not changed, in my experience, most employers have a few employees who have been misclassified because the work being performed has changed over time, or the employee was misclassified to begin with.
The change in the regulations provides employers with the opportunity to correct the misclassifications without necessarily tipping off their employees that they should have been receiving overtime pay for years.
So, what should you be doing?
• Make sure that all of your position descriptions are current and accurate; and
• Evaluate all positions and determine if any should be exempt or non-exempt.
To assist you, I posted a chart on the firm’s website that provides the full test for each exemption. Remember, the default classification is non-exempt. Employers bear the burden of proving employees are correctly classified as exempt.
If you need further assistance understanding the new regulations or reviewing classifications, contact an experienced employment attorney or click here to view Plunkett Cooney’s webinar on this important topic.
- Senior Attorney
An attorney in the firm’s Detroit office, Claudia D. Orr exclusively represents and advises employers and management in employment and labor law matters.
Ms. Orr's clients include Fortune 500 companies, local governments ...
Add a comment
SubscribeRSS Plunkett Cooney LinkedIn Page Plunkett Cooney Twitter Page Plunkett Cooney Facebook Page
- Employment Liability
- Human Resources
- Labor Law
- Equal Employment Opportunity Commission (EEOC)
- Department of Labor (DOL)
- Employment Discrimination
- Employment Agreement
- Wage & Hour
- Family Medical Leave Act (FMLA)
- Workers' Compensation
- Fair Labor Standards Act (FLSA)
- Title VII
- Regulatory Law
- Workplace Harassment
- Americans With Disabilities Act (ADA)
- Sick Leave
- National Labor Relations Act
- Paid Medical Leave Act (PMLA)
- OSHA Issues
- Minimum Wage
- Sexual Harassment
- National Labor Relations Board
- Transgender Issues
- Civil Rights
- Non-compete Agreements
- Social Media
- Whistleblower Protection Act
- Retail Liability
- Emergency Information
- Business Risk Management
- Class Actions
- Uniformed Services Employment and Reemployment Rights Act (USERRA)
- Hostile Work Environment
- Department of Education (DOE)
- Title IX
- Tax Law
- Medical Marijuana
- Right to Work
- Health Insurance Portability and Accountability Act (HIPAA)
- Union Organizing & Relations
- Remote Work Still Required Amid Covid-19 Surge in Michigan
- DOL Opinion Letter Withdrawals Continue Under Biden Administration
- Worker’s Comp Coverage Would Have Been A Good Thing for This Employer
- Important COVID-19 Updates for Michigan Employers
- What Employers Can Do to Protect Themselves, Employees in Age of Digital Harassment
- New Pact to Trigger Inter-Department Consultation
- Garnishment Error Results In Employer’s Debt
- Stunning Victory by Employer in Discrimination Case
- Michigan Governor’s COVID-19 Executive Orders Struck But Replaced
- Rare Published Opinion Bad News For Michigan Employers