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
- Wage & Hour
- Department of Labor (DOL)
- Fair Labor Standards Act (FLSA)
- National Labor Relations Act
- Equal Employment Opportunity Commission (EEOC)
- Employment Liability
- Labor Law
- Human Resources
- Employment Discrimination
- Americans With Disabilities Act (ADA)
- Minimum Wage
- Uniformed Services Employment and Reemployment Rights Act (USERRA)
- Sick Leave
- National Labor Relations Board
- Transgender Issues
- Whistleblower Protection Act
- Title VII
- Employment Agreement
- Hostile Work Environment
- Family Medical Leave Act (FMLA)
- Class Actions
- Workplace Harassment
- Department of Education (DOE)
- Title IX
- Tax Law
- Medical Marijuana
- Right to Work
- Health Insurance Portability and Accountability Act (HIPAA)
- Union Organizing & Relations
- DOL Gets Granular on Rounding of Employees’ Time
- Federal Appellate Court Finds Potential USERRA Violations
- Employers Must File EEO-1 Survey with Pay Data by Sept. 30
- Adopt and Amend? Supreme Court to Decide Fate of Paid Medical Leave, Improved Workforce Opportunity Acts
- New ADA Case Is Great For Employers
- Michigan Legislature Challenges its Own Lame Duck Amendments to Paid Sick Time, Minimum Wage Rate Laws
- Supreme Court Rules EEOC Charge not Jurisdictional Requirement for Bringing Civil Rights Claims in Federal Court
- Causal Connection between Protected Activity and Adverse Action Supported By Employer’s ‘Good Deed’
- Does Your Company’s Employment Application Process Violate the ADA?
- Let me Tell You What I Just Heard…