FLSA UPDATE: where things stand with the DOL’s proposed overtime rule changes
APRIL 5, 2016, UPDATE:
On March 14, 2016, the final overtime rule is edged closer to release as the Department of Labor (DOL) sent to the Office of Management and Budget (OMB) its final changes for determining which workers are eligible for overtime pay. The revision to FLSA regulations is expected to affect millions of employees currently considered exempt from overtime, requiring them to be reclassified as nonexempt. After a review period that could take anywhere from several months or just a few short as a few weeks, a final rule will be published in the Federal Register and then take effect within 60 days of publication.
On March 29, two weeks after the suggested changes were sent to the OMB, the Society for Human Resource Management (SHRM) testified before the U.S. House Committee on Education and the Workforce at a field hearing in Michigan regarding the damaging affects the proposed Fair Labor Standards Act (FLSA) overtime rule changes would have on businesses, workers and the economy. At the hearing, Nancy McKeague, SHRM-SCP, senior vice president and chief of staff at Michigan Health & Hospital Association (MHA) in Okemos, Michigan, made the point that exempt or nonexempt classification decisions are particularly challenging, as they rely on objective and subjective factors.
At this time, the business community cautiously awaits the OMB decision. Stay tuned to this blog for more updates, and sign up for MODERN EMPLOYER to stay in the loop on these and other HR current events.
As we previously wrote, speculation is out there as to when the changes would take place.
This whole legislative push started back in June of 2015, when The Department of Labor (DOL) officially proposed several changes to the Fair Labor Standards Act (FLSA) overtime regulations. Last week, we wrote about one educated guess we came across as to the date for when the new rules would go into affect from The Employer Handbook. The blog suggests (…read more)
What this means for you as an employer?
It means businesses need to be prepared! If the proposed changes do go into affect, 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. That’s a lot of payroll expense and change to calculate into your costs, projections and bottom line. (read more…)
An FLSA review has never been timelier.
At myHR Partner, we are qualified and experienced in conducting in-depth FLSA reviews/audits. 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.