ALERT: New Overtime Rule put on hold by Department of Labor

Nov 23, 2016 11:40:51 AM

According to recent reports, a Federal judge in Texas has blocked the new overtime rule, created to raise the FLSA’s salary threshold. An injunction was filed due to a lawsuit challenging the DOL’s authority to raise the salary threshold, bringing organizations across the country to a stand still. Judge Amos Mazzant of the U.S District Court of the Eastern District, who granted the injunction, said, “A preliminary injunction preserves the status quo while the court determines the department's authority to make the final rule as well as the final rule's validity.” www.shrm.org

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Compliance Strategies for 2016 FLSA Requirements: Are you Ready?

Aug 19, 2016 8:45:09 AM

 The Department of Labor updated overtime regulations in the Fair Labor Standards Act (FLSA) this year. These regulations change the overtime eligibility threshold for workers paid over $47,476 annually and expands overtime protection to over 4 million workers. These new regulations take effect December 1, 2016.

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Kronos & Compliance: Are you Prepared for the new Overtime Rules?

May 6, 2016 11:30:00 AM

 

The U.S. Department of Labor is expected to announce overtime rules addressing regulations that will significantly affect labor costs. The overtime protections will be extended to nearly 5 million white collar workers within the first year of implementation. With only 60 days to comply, employers will be expected to increase the salary level for “white collar” exemptions from the current minimum of $455 per week, or $23,660 a year, to $970 per week, or $50,440 annually.  As a result, employees paid below the $50,440 threshold would be entitled to overtime on any work over 40 hours per week.

The proposed overtime rule is still waiting on approval from the OMB, but organizations should not wait to start preparing for the changes. There are serious consequences for non-compliance. NERA Economic Consulting reported that the average settlement payment could cost companies around $6.9 million.

 

What should organizations do to prepare for the FLSA changes?

  1. Understand Federal and State Requirements

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FLSA Compliance: Best Practices for FLSA Compliance with Kronos [Part 2]

Dec 29, 2015 8:12:34 AM

Last week, we discussed how compliance is a major challenge for almost every employer. The recent modifications to the Fair Labor Standards Act have caused many organizations to see a spike in compliance risks. FLSA suits hit a record high in 2014, with over 1.3 Billion in back wages recovered. Organizations in all verticals have experienced wage and hour suits of upwards of 20 million dollars.

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FLSA Compliance: What the new FLSA Rules Mean for Kronos Users

Dec 14, 2015 7:00:00 AM

 

Compliance is a major challenge for almost every employer. The recent modifications to the Fair Labor Standards Act have caused many organizations to see a spike in compliance risks. FLSA suits hit a record high in 2014, with over 1.3 Billion in back wages recovered. Organizations in all verticals have experienced wage and hour suits of upwards of 20 million dollars.

The Department of Labor expects 5 million employees to potentially be impacted starting in 2016.

 The proposed rule is designed to update the salary and compensation levels for white-collar workers to be exempt. Changes will include:

  • Setting the standard salary level at the 40th percentile of weekly earnings for full-time salaried workers ($921 per week, or $47,892 annually).
  • Increasing the total annual compensation requirement needed to exempt highly compensated employees (HCEs) to the annualized value of the 90th percentile of weekly earnings of full-time salaried workers ($122,148 annually).
  • Establishing a mechanism for automatically updating the salary and compensation levels going forward to ensure that they will continue to provide a useful and effective test for exemptions.

 The proposed standard salary level represents the most appropriate line between exempt and nonexempt employees because it minimizes the risk that employees legally entitled to overtime will be subject to misclassification based on their salaries alone.

 So what do the new FLSA rules mean for you and your company?

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