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 ...
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