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So, you think you have better things to focus on than FLSA changes?

Posted on: August 11th, 2015 | Category: Government Regulatory & Compliance Issues, Our Blog

An Employer’s Guide to the Proposed FLSA Overtime Regulation Changes
Part 1

DOL and HR - myHR BlogBack in June, The Department of Labor’s (DOL) officially proposed several changes to the Fair Labor Standards Act (FLSA) overtime regulations. These proposed changes are a big concern to human resources professionals and employers all over the country, who are still trying to wrap their heads around what they might be expected to do to remain compliant—and profitable—if and when the regulations go into effect. The potential impact that these changes would have on how businesses handle overtime exemption is huge. Really huge.

As we all wait and see what the DOL finally does with these proposals, myHR Partner has put together a three-part series on the matter. We hope it helps you keep abreast of the FLSA overtime regulations being proposed so that you can best prepare for what may come in the months ahead.

So, you think you have better things to focus on than FLSA changes?

Think again. An estimated 11 million employees will be affected. You need to pay attention.

FLSA overtime regulation changes - myHR Blog According to an excellent report by the Society of Human Resources Management (SHRM), The proposed overtime regulation changes to the FLSA will impact employees and employers across every industry and sector. If your organization employs any exempt/salaried workers, it is imperative that you know if you are properly classifying employees according to the FLSA requirements regardless of the proposed changes. It makes good business sense to also prepare for other changes by a yet-to-be-determined 2016 effective date, which will be established in the final rule.

According to the SHRM, employers need to reassess how their individual states handle their applications, and how to correctly classify exempt and non-exempt status employees under new guidelines. From the report:

State Law Application. Employers in states with wage and hour laws that are more restrictive in their application (for example, California) will need to review their coverage requirements under federal law in light of these proposed changes.

Workplace Flexibility Reduced. Changes will require employers to reclassify a significant number of employees from exempt to non-exempt status, requiring tracking of hours worked, resulting in the loss of workplace flexibility.

Bottom Line: What this means is that you may now be required to pay overtime, time and one half, for hours worked over 40 hours per week, to a percentage of employees who are currently salaried.

SHRM has created a special section on its HR Policy Action Center dedicated to news and advocacy efforts surrounding the upcoming overtime regulations. It is worth checking out as new information becomes available.

Keep in mind, that salary is only one basis for determining if a job is qualified for an exempt status according to the FLSA laws.

An FLSA audit has never been more timely.

At myHR Partner, we have been conducting in-depth FLSA audits for years. Conducting one in advance of these proposed changed, will not only assure you are current with the federal FLSA requirements, it will help you plan for the potential impact both financially and for your potential upcoming staffing changes. Our clients rely on the FLSA audit to properly classify employees based on the most current FLSA laws. To find out more about our FLSA audits, contact us today.

Don’t miss the rest of this series!

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