The Department of Labor recently announced the final updates to the Fair Labor Standards Act that will take effect on December 1, 2016. Not being prepared for this update could cost you thousands in higher wages or employees lawsuits.
In May 2016, the Department of Labor announced revised regulations which affect the Fair Labor Standards Act’s “white collar” overtime exemptions. These new regulations have raised the salary threshold needed to qualify for overtime exemption from $455/week ($23,600 per year) to $913/week ($47,476/year).
Any business that employs workers with salaries under $47,476 will be directly affected by the new regulations and needs to consider their best course of action for each affected employee.
Over 60% of Businesses May Be Affected
According to Paycor data, 64% of businesses will be affected by this update.
Employers should prepare their organization to comply with these updates.