FLSA Update – Department of Labor Announces Final Rules July 2016
The Department of Labor’s announced that the final rules regarding the White Collar Exemption Regulations will be published July 2016. As we all know the regulations will become effective 60 days after publication, which is September 2016. The proposed regulations will increase the salary basis test for most FLSA exemptions. We are talking about several million more employees eligible for overtime payments. This will have a significant impact on company’s bottom lines. Each employer will need to evaluate all current exempt employees to determine which ones are impacted by the new regulations. During this evaluation, employers will need to look at the financial impact of raising salaries or paying overtime. It also means employers will need to manage work hours very closely. It is important to begin the reviewing of FLSA emption classifications as soon as possible.