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
- Department of Labor (DOL)
- OSHA Issues
- Labor Law
- Title VII
- Family Medical Leave Act (FMLA)
- Equal Employment Opportunity Commission (EEOC)
- Employment Discrimination
- Human Resources
- Sick Leave
- Wage & Hour
- Paid Medical Leave Act (PMLA)
- Fair Labor Standards Act (FLSA)
- Americans With Disabilities Act (ADA)
- Civil Rights
- Employment Agreement
- National Labor Relations Act
- Minimum Wage
- Non-compete Agreements
- Social Media
- National Labor Relations Board
- Regulatory Law
- Transgender Issues
- Retail Liability
- Whistleblower Protection Act
- Emergency Information
- Workers' Compensation
- Business Risk Management
- Workplace Harassment
- 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
- Michigan Governor’s COVID-19 Executive Orders Struck But Replaced
- Rare Published Opinion Bad News For Michigan Employers
- DOL Issues Partially Revised Regulations Regarding Paid Sick Leave Under FFCRA
- Grieving the Loss of the Company’s Social Media Accounts
- New Federal Employee Leave Laws – the Confusion That Keeps on Coming
- 8 (no, Make it 7) Hiring Lessons Learned at University
- Masks and Testing Under the Americans With Disabilities Act
- Michigan Issues New COVID-19 Return to Work Rules With Enforceable Workplace Standards
- Michigan’s Shelter in Place Continues Through May 15, With Modifications
- The Constantly Changing Coronavirus Landscape and its Effects on Michigan Employers