Coming Soon - New Minimum Salary Levels for Exempt Employees, Are You Ready?

The Department of Labor recently released its long-awaited proposal to increase the minimum salary to qualify for exempt status from $684 per week to $1,059 per week or from $35,568 to $55,068 annually. These changes have not become law yet, but something close to it will soon. It is now time for organizations to plan for these changes.

The Fair Labor Standards Act (FLSA) is one of the most misunderstood employment laws in the country. Basically, it governs the payment of wages and who must be paid overtime. To make things more confusing, the Department of Labor has implemented a number of exemptions to the requirement to pay overtime such as the White-Collar Exemptions and the 7(i) exemption for retail and service establishments. The DOL also allows different ways of computing overtime pay.

Alaska, California, Colorado, Maine, New York, and Washington have developed their own rules that are different from Federal Law. Thirty-three states have implemented minimum wages that are higher than the Federal Minimum wage of $7.25 per hour. In addition, many municipalities have their own minimum wage laws.

Many organizations do not understand their responsibilities with regard to what types of positions qualify as white-collar exemptions, how to handle commissions, shift differential, and production bonuses for hourly employees, and other nuances of complying such as handling training and travel time.

The FLSA is a Federal Law, but employers must know that many states, municipalities, and any type of governmental contract may have their own rules regarding minimum wage and overtime.

After going through this webinar, participants will know:

• Gain an understanding of the provisions of the Fair Labor Standards Act
• Know the White-Collar Exemptions and how they are determined
• Determining other exemptions and overtime calculations
• Correctly calculating overtime pay for employees who receive commissions, production bonuses, and shift differential
• Know the minimum wage in areas in which your organization operates
• When to pay for training, travel time, meal breaks or employees on-call
• Get an update on various State Regulations

• The Primary Provisions of the Federal Labor Standards Act
• Tests to Determine if a Position Qualifies for a White Collar Exemption
• Review of the Proposal Released by the Wage and Hour Division of the Department of Labor
• Other Exemptions Your Organization May Want to Consider
• Computing overtime pay for multiple pay rates
• Treatment of Meal Breaks, Travel, Training, and Time Spent On-Call
• Minimum Wage Requirements by State and Contract
• Recordkeeping and Posting Requirements
• What’s Going to Get You in Trouble?
• Action Items

Maintaining compliance is critical to your business.  Failing to do so can cost hundreds of thousands of dollars. The amount you pay your exempt employees is only one issue. Payroll practices must be changed as formerly exempt employees who no longer qualify due to the higher salary level will be required to keep track of their hours and will be eligible for overtime. There may be some moral issues as well.

Other things to think about are how benefits will be handled especially if there are different benefits for non-exempt and exempt employees. There are other payment options you may want to consider such as fixed pay for a fluctuating work week or the 7(i) exemption. Both of which will be reviewed during the webinar.

Communicating these changes well before the effective dates of July 1, 2024, and January 1, 2025, is critical. The webinar will also go over the issues to think about before implementing the changes and how to communicate the changes to affected employees.

All organizations in the United States involved in interstate commerce are covered by the Fair Labor Standards Act

• Human Resources Professionals
• Small Business Owners
• Supervisors
• Managers

Any industry associations, Small Business Networks, chambers of commerce, Human Resources Associations such as SHRM, training associations, Human Resources Groups, Small business associations such as Small Business Development Centers, Industry Associations – such as restaurant associations, hospitality groups, and trade organizations.

Bob McKenzie brings over 40 years of extensive human resources management experience to the table. With a rich background spanning various industries in both the private sector, public sector, and nonprofit organizations, Bob has honed his expertise in all facets of HR practices.

His insights and expertise have been recognized in numerous Human Resources trade publications, including HR.com, HR Magazine, HR Florida Review, Vault.com, BNA, the Institute of Management and Administration, and the Business Journals. As a sought-after speaker, Bob has graced several conferences and led engaging audio and web-based seminars.

Bob holds a Bachelor of Science in Commerce Degree with double majors in Industrial Relations and Organizational Behavior from Rider University. Currently residing in Brunswick, GA, Bob continues to be a driving force in the HR industry, offering valuable insights and solutions to organizations worldwide.