New FLSA White Collar Overtime Rules

(effective December 1, 2016)

What you need to know

  • Salary minimum increased to $47,476 or $917 per week
  • Highly compensated employee salary increased to $134.004
  • Salary levels will increase every three years starting January 2020
  • Salary basis—no change
  • Duties tests—no change

What you need to do

  • Identify currently exempt employees salaried at less that $47,476
  • Examine duties to ensure they meet the 541 duty tests for executive, administration, professional, outside sales and computer professionals
  • Do you want to raise the salary levels or reclassify employees as non-exempt?
  • Reclassified employees can be salary non-exempt (due overtime after 40 hours of work) or converted to hourly
  • Clearly communicate all changes
  • Train newly non-exempt employees and their supervisors on FLSA compliance, particularly time keeping records

I can help you through this process. Contact me directly or have your attorney contact me.