desk_office_workers_business_whitecollar.jpg

    Prepare for the white-collar exemption rule

    Authored by Bukaty Companies on September 2, 2016

    Employers have less than four months to prepare for the upcoming changes to the Fair Labor Standards Act (FLSA) final rules affecting white-collar overtime exemptions.

    Effective December 1, 2016, the salary threshold for exempt employees will increase from $455 per week to $913– or $23,660 per year to $47,476 – which represents the 40th percentile of full-time salaried workers. Also, the total annual compensation requirement for highly compensated employees will increase from the current level of $100,000 to $134,004. This level represents the 90th percentile of full-time salaried workers nationally.

    Employers need to determine prior to the implementation deadline whether compensation for exempt employees satisfies the new thresholds. If not, employers need to either increase salaries or convert those affected to non-exempt status. This process involves employers assessing labor costs and rethinking the current structures of their workforce.

    Questions about the new changes can be directed to Shirley Lind, CEBS, SPHR, who leads Bukaty Companies’ Human Resources division, at slind@bukaty.com.

    *On March 17, House and Senate Republicans introduced legislation calling for the exemption changes to be stopped. Bukaty Companies will continue to monitor this important issue.

    Blog Category: Compliance