By: Brian Senjem | December 04, 2017

The U.S. Department of Labor today announced a Notice of Proposed Rulemaking (NPRM) regarding the tip regulations under the Fair Labor Standards Act (FLSA). Under the proposed rule, workplaces would have the freedom to allow sharing of tips among more employees. The proposal would help decrease wage disparities between tipped and non-tipped workers – an option that is currently restricted by a rule promulgated in 2011 that has been challenged in a number of courts.

The NPRM will be published in the Federal Register on December 5, 2017, and be available for public comment for 30 days. The Department encourages interested parties to submit comments on the proposed rule. The NPRM, along with the procedures for submitting comments, can be f...

By: Brian Senjem | September 05, 2017

August 31, 2017, Federal Judge Amos Mazzant struck down the Obama administration's 2016 rule that more than doubled—from $23,660 to $47,476—the minimum annual salary required to qualify for the Fair Labor Standards Act's "white collar" exemptions. Last November, the same court blocked the overtime rule, but had not yet declared it invalid.


Employers don't have to make any changes. The order is a final ruling.


However, employers should prepare for an eventual increase to the exempt salary threshold, even though it isn't clear what the final number will be. The rumors are in the $30Ks somewhere.


That means the existing overtime regulations apply for now, which is as follows:


To be considered “exempt,” employees must meet three (3) requ...

By: Brian Senjem | June 01, 2016

OVERVIEW

  • On May 18, 2016 the Department of Labor announced the final ruling on the FLSA Overtime Exemption.
  • In order for employees to remain exempt from the overtime rules (commonly referred to as salaried), they must be paid a salary of at least $47,476 per year.
  • Changes are effective December 1, 2016 assuming Congress does not overturn the ruling.


CHANGES MADE – NEW OVERTIME EXEMPT RULE

  • Minimum Salary Threshold for Exempt Employees effective December 1, 2016.
  • $913 per week, equivalent to $47,476 per year.
  • Up to 10% of the Base Threshold Salary may be paid through nondiscretionary bonuses, incentive pay, or commissions (paid at least quarterly). This means one can pay a salary of $42,728.40 plus bonuses of $4747.60 to meet the Salary Threshold.
  • ...