Who Is Entitled to Overtime Pay Under 2016 FLSA Rules?

2016 Changes Standards Act (FLSA) to Fair Labor • Myth • Employees on salary don't get paid overtime. • Law • Employers are required to pay all "non-exempt" employees overtime. Proposed 2016 FLSA "Executive" Exemption Current FLSA "Executive" Exemption Salaried employees who make over $455 per week or $23,660 per year and primari- ly perform executive, administrative or Revised exemption status doubles the salary level for those exemptions to $970 per week or $50,440 per year professional duties $23,660 $50,440 Percent of full-time salaried workers eligible for overtime (based on salary) Current Proposed 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% What Does this Mean to You? All of your employees on salary making less than $50,440 per year back overtime, or 3 years if the mis- will be entitled to overtime pay. Failure to comply results in 2 years' classification was willful. What Can You do to Prepare? Conduct an exemption audit To qualify for the proposed executive status, four requirements must be met: Compensated on a salary basis at a rate not less than $970 per week Managing the en- terprise or a cus- tomarily recognized department Direct the work of at least two or more other Authority to hire or fire other employ- ees or heavily influ- ence hires full-time employees What Are Your Options? Increase employee salary to new minimum OR Prepare to pay non-exempt employees for overtime hours Mark works 50 hours a week for $45k a year Raise his salary to the new exempt status Keep his salary, but pay for overtime hours Example $45,000/yr +$5,440 +$16,875 Rasing Mark's salary to the new exempt status would save you $11,000 per year Choosewhat For more information, please visit: www.choosewhat.com/starticles/2016FLSA