Simplifying the Revised Fair Labor Standards Act (FLSA) Regulations

Simplifying the Revised Fair Labor Standards Act (FLSA) Regulations

The US Department of Labor, which has Federal enforcement responsibility for the Fair Labor Standards Act’s (FLSA) regulations announced in May of this year that revised guidelines, governing employees’ eligibility for overtime pay, will become effective December 1, 2016. I have received inquiries from family members and friends who do not fully understand the revised FLSA regulations and how they could affect them.  One inquiry in particular that I received resulted from an employer’s decision to take a blanket approach to compliance by classifying formerly exempt employees as non-exempt, although their annual salary is above the new $47, 476 salary threshold.  I will try to explain the changes to the Law in a clear and concise manner.  Let us look at each change:

  • The determination regarding an employee’s eligibility for overtime pay is made based on both the employee’s annual salary amount and the type of work that they do.
  • Currently, until November 30, 2016, covered employees whose annual base salary (without bonuses and/or overtime pay) is less than $23,660, are eligible to receive overtime pay.
  • Beginning December 1, 2016, anyone whose annual salary is less than $47,476 will be classified as hourly-paid, covered non-exempt employees and will be eligible to receive overtime pay for hours worked over forty (40) in a work week.
  • First, the biggest change to the Law will be in the annual salary portion of the determination that is used to determine if employees are eligible for overtime pay.
  • Most employees who are not eligible to receive overtime pay are classified as exempt from overtime pay standards. Most employees who are eligible to receive overtime pay are classified as non-exempt from overtime pay standards.
  • Covered employees who are eligible to receive overtime pay, must be paid at least one and one-half times (aka “a time and a half”) their regular hourly pay rate for each overtime hour worked.
  • As with almost anything else, some exceptions do apply (i.e., law enforcement personnel and firefighters, etc.)
  • A bill that would delay the effective date of these changes to the overtime pay standards for six (6) months in under consideration.

If you are an employee whose base salary (annual pay without bonuses and overtime pay) is less than $47,476 regulations may affect you, I encourage you to ask questions.  You may also visit the US Department of Labor’s website at www.dol.gov and/or the Society for Human Resources Management’s (SHRM) website at www.shrm.org for more resources on this topic.

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Author: FirstWeb

FirstWeb
Who Is Cynthia B. Okonkwo? I am a wife and a mom who is a people person by heart. I live in metro-Atlanta and work as a Human Resources professional and have over twenty-four years experience in the field. My experience includes Compensation, Training, Recruiting, Employee Relations, Benefits, and Selection Procedure Development; however, Employee Relations is my passion because I enjoy interacting with others and helping them to solve problems. I became interested in Human Resources while on a work-study assignment during my sophomore year in undergraduate school. I chose management as my major because I was not quite certain what I wanted to do after college and I knew that an off-shoot of Business Administration was a safe, general choice that could help me get into a number of career fields. My work-study assignment was as an assistant to the campus Director of Career Services. There, I learned to make cold calls to area businesses to seek out employment opportunities for students and alumni. I also learned how to format vacancy announcements and resumes. Since writing had always been one of my strengths, I enjoyed my assignment so much that I requested to be reassigned to that department for most of the remainder of my undergraduate career. My Director also provided resources on job interview preparation and she allowed me to type resumes for students who did not have one and charge $1 per page to make a few extra bucks. I got a full-time job immediately after graduation, but it wasn’t in Human Resources; however, I had a Vice President who took me under his wings and allowed me to review employment applications for job openings at the Distribution Center where I worked, so this helped to strengthen my resume. It took me about two and a half years to secure my first full-time job in the field of human resources where I became a trained test developer for the State’s Government Merit System. From there my career has continued to grow. My blog was born out of my desire to write a book that provides practical job search tips and advice, from a spiritual, holistic perspective. After having drafted about three chapters, I got busy with grad school and obtained my MBA; got married and started a family. In 2013, I became SPHR (Sr. Professional in Human Resources) certified. I started seeing other people’s blogs, became interested and thought that blogging might be a great alternative, or spring board to completing my book, so here we are today. My sincere hope is that what I write will help someone. Enjoy!

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