7015 College Blvd
Suite 375
Overland Park, KS 66211

M - F 8:30am - 5:00pm
913.345.2555

Do the New FLSA Rules Affect You?

By Katherine Tracy

On December 1, 2016, the New Rules under the Fair Labor Standards Act will go into effect. The biggest change impacts employees that were previously not entitled to overtime, i.e., were exempt from overtime requirements, because they fell within either the Executive, Administrative or Professional exemptions (“EAP Exemptions”) or qualified as exempt under the Highly Compensated Employee (“HCE”) exemption.

Beginning in December, a new “salary level” applies that requires employees to receive a weekly salary of at least $913.00 weekly (instead of $455.00 weekly) as a first step to determine whether the employee falls into one of the EAP Exemptions. The New Rule also increases the annual salary level of the HCE exemption from $100,000.00 to $134,004.00. No changes were made to the other tests applicable to these exemptions (e.g., the duties test and the salary basis test).

The New Rule also requires automatic “salary level” adjustments every 3 years, beginning on January 1, 2020. Prior to this change, the FLSA did not include a provision for automatic updates to the “salary level”. The new salary levels under the automatic update provisions will be announced at least 150 days prior to the effective date of the change, which will permit employers time to implement the change.

Employers have a few months to decide what steps to take next to comply with the New Rule. If you have questions about the FLSA’s New Rule and how it may affect you as an employer or employee, please feel free to contact us.

Disclaimer: The choice of a lawyer is an important decision and should not be based solely on advertisements.

 


Posted in FLSA, General

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7015 College Blvd, Suite 375 — Overland Park, KS 66211


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    7015 College Blvd
    Suite 375
    Overland Park, KS 66211