DOL Rule Increasing Minimum Salary Requirements for Exempt Employees Now on Hold Per Court Order

gavelLast month, we discussed how the Department of Labor (DOL) was scheduled to implement a new rule that would increase the minimum salary requirements for exempt employees.  The new rule published by the DOL would have doubled the minimum salary requirements for employees from $455/week to $913/week. This rule was supposed to take effect on December 1, 2016; however, employers can breathe easy for a bit longer.

On November 22, 2016 a federal judge from the United States District Court in Texas temporarily blocked implementation of the rule, in response to a request by 21 states and business groups.  This delay is temporary, while litigation continues and the court makes a determination as to whether the DOL has the authority to implement such a rule. Continue reading

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New DOL Rule Increases Minimum Salary Requirements for Exempt Employees Starting 12/01/16

12/01/16: This Rule is currently on hold, per court order. Please read the latest article for news updates on this topic.

On May 23, 2016, the Department of Labor announced a new, final rule that will take effect on December 1, 2016. To the relief of employers, the new rule does not make any changes to the criteria for classifying employees as exempt. Employers can continue to classify employees as exempt or non-exempt under the same duties tests and criteria they used in the past. However, the principal change comes in the form of several heightened minimum salary requirements.

The DOL estimates that in the first year as many as 4.2 million workers would either need to: (1) be reclassified as non-exempt and paid overtime whenever they work more than 40 hours in a workweek; or (2) receive an increase in their salary to meet the new requirement.

exempt-well-maybeUnder the new rule, the minimum annual salary for exempt employees will more than double, from $23,660 ($455 per week) to $47,476 ($921 a week). The minimum annual salary for highly compensated employees will also increase from $100,000 to $134,004. Furthermore, these minimums will continue to automatically increase every three years.

In a new addition to the rule, employers will now be permitted to satisfy up to 10 percent of the annual salary level through non-discretionary bonus and incentive payments, including commissions. Payments to health insurance policies, however, may not be used to satisfy the salary requirement. Continue reading

URGENT: Employers MUST Post New Federal Minimum Wage and Polygraph Posters By August 1, 2016

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ATTENTION all Employers:

The Department of Labor recently revised the federal mandatory minimum wage and polygraph posters that employers must post in the workplace.

Although the federal minimum wage did not change, the new minimum wage poster now contains information regarding the consequences of incorrectly classifying workers as independent contractors, in addition to a new section on the rights of nursing mothers.

The new federal polygraph poster now contains updated contact information for the Department of Labor, and no longer contains a reference to the penalty amount of up to $10,000 for violation of the law.

employment posterEmployers are required to post the updated posters in a conspicuous area of the workplace by no later than August 1, 2016. Continue reading

California Employers: Prepare for New Overtime Rules Effective December 1, 2016

numbers-time-watch-white.pexelsOn May 18, 2016, President Obama  and Secretary  Perez announced the Department of Labor’s final rule updating overtime regulations, to the disappointment of many employers.  The new rule, which will automatically provide overtime pay protections to over four million  workers within its first year of implementation, goes into effect on December 1, 2016.

The Department published a Notice of Proposed Rulemaking (NPRM) in the Federal Register on July 6, 2015 (80 FR 38515) and invited interested parties to submit written comments on the proposed rule at www.regulations.gov by September 4, 2015. The Department received over 270,000 comments in response to the NPRM from a variety of interested stakeholders. The feedback the Department received helped shape the Final Rule. Continue reading