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January 12, 2015

The New FLSA Rule is Coming. Are you Ready?

Filed under: FLSA,General HR Buzz,Salaries & Pay3:22 am

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By Joyce Marsh, SPHR, Senior HR Consultant

According to the U.S. Department of Labor’s (DOL) Wage and Hour Division, the Fair Labor Standards Act (FLSA) proposed rule should hit somewhere in the first quarter of 2015. This release is somewhat later than the original forecast of November 2014 for the final rule.

The final rule shouldn’t differ too much from the proposed one, so now is the time to start looking at classifications. While no one knows for sure what the changes will be to the white-collar exemptions, here are some educated guesses from some employment law experts:

  • An increase in the minimum salary threshold
    There’s speculation that the current threshold of $455 per week/$23,660 per year could more than double to $970 per week/$50,440 per year.
  • Exempt duty standards will change
    Following California’s current requirements, standards could change to employees needing to engage in exempt duties at least 50 percent of the time.
  • Executive exemption standards will change
    In an effort by the DOL to change or eliminate the primary duty standard, executive exemption could be lessened.

As we said, these are just highly educated guesses. So whatever happens with the FLSA proposed rule, the main lesson here is to be prepared.

 

 

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