As many of you already know there are new FLSA regulations that begin on December 1, 2016. Most of the regulations will effect those salary employees making less than $47,476 per year, but there are a few other things to look at. Below you'll find the key provisions as listed by the Department of Labor. While Future Systems is happy to help you make sense of the new regulations, you'll need to contact the Department of Labor or an HR professional for final rulings on any part of this that you think may effect you.
The Final Rule focuses primarily on updating the salary and compensation levels needed for Executive, Administrative and Professional workers to be exempt. Specifically, the Final Rule:
Additionally, the Final Rule amends the salary basis test to allow employers to use nondiscretionary bonuses and incentive payments (including commissions) to satisfy up to 10 percent of the new standard salary level.
The effective date of the final rule is December 1, 2016. The initial increases to the standard salary level (from $455 to $913 per week) and HCE total annual compensation requirement (from $100,000 to $134,004 per year) will be effective on that date. Future automatic updates to those thresholds will occur every three years, beginning on January 1, 2020.