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Legal Updates


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FLSA Overtime Exemption Updates (March 7, 2019)

On March 7, 2019, the Department of Labor announced a new proposed rule that would extend eligibility for overtime pay to approximately 1.1 million additional workers.  The proposed rule would require overtime pay for all employees earning less than $35,308 per year.  Employees who earn more than this threshold amount can still qualify for overtime exemptions if their job duties primarily involve executive, administrative, or professional functions, often called the “white-collar” exemptions.

Unless exempt, employees covered by the Fair Labor Standards Act must receive at least one and one-half times their regular hourly pay rate for all hours worked over 40 in a workweek.  This includes both salaried and hourly employees.  

Employers should carefully examine the salaries for any employees who are currently deemed exempt from overtime requirements to be prepared for the proposed rule change.  A number of strategies are available to businesses to ensure that reclassification of employees does not result in additional payroll expenses.  While compliance with the new proposed rule is not required yet, this presents a good opportunity for employers to audit whether their currently exempt employees actually satisfy the duties test for the white-collar exemptions.

HRABC Legislative Affairs Director Michael S. Kantor, Esq., specializes in employment law and is available for consultation at legislativeaffairs@hrabc.org should you have any questions.


 

 

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