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Minimum Salary Threshold for Overtime Exemption Likely to Be $50,544

In preparing for the soon-to-be published revisions to the federal overtime regulations under Part 541 of the Fair Labor Standards Act (FLSA), one of the significant challenges employers face is continuing uncertainty as to what the new minimum salary threshold will be for the executive, administrative, and professional exemptions. The most likely number is $972 per week, which annualizes to $50,544.

Ready For The Looming Exemption Changes?

The publication date for the U.S. Labor Department's revised federal Fair Labor Standards Act's Section 13(a)(1) "white collar" exemption definitions remains uncertain. But a growing consensus is that they are likely to be released within the next four weeks or so.

Classification Headaches? XpertHR Has the Remedy

It is often said that “good things come to those who wait.” However, when it comes to wage and hour compliance, it is becoming increasingly clear the time to act is now. In fact, waiting could put an employer in the undesirable position of drawing attention to itself in an arena where regulators and plaintiffs’ lawyers have never been more eager to pounce on mistakes – no matter how inadvertent – regarding how a company hires, engages and pays those performing services for them.

Fourth Circuit Holds Insurance Fraud Investigators are Not Exempt from Overtime Pay, Creating Circuit Split

Disagreeing with a sister circuit, the U.S. Court of Appeals for the Fourth Circuit has held that insurance fraud investigators were misclassified as exempt from overtime pay under the administrative exemption of the Fair Labor Standards Act, signaling that it will construe the exemption narrowly. Calderon v. GEICO General Insurance Co., 2015 U.S. App. LEXIS 22546 (4th Cir. 2015).

"The Online Exemption Checklist Says . . ."

Coming changes in at least some of the U.S. Labor Department's definitions for the federal Fair Labor Standards Act's Section 13(a)(1) "white collar" exemptions are leading employers to evaluate whether employees they treat as exempt meet all of the duties-related requirements.

Minimum Wages To Rise On Both Coasts

Over the past few years, numerous states and municipalities have increased the statutory minimum wage. Further, through Executive Order, President Obama increased the federal minimum wage applicable to federal contractors. Consistent with this trend, the governors of both California and New York have now reached new legislative deals with their respective legislative branches which provide for significant increases to the minimum wage in each state.

Wynn Marketing Executive Host Is Exempt Administrative Employee Due To Exercise of Discretion

Earlier this week, the U.S. Court of Appeals for the Ninth Circuit issued an unpublished decision affirming summary judgment in favor of Wynn Las Vegas with respect to overtime claims asserted by a Slot Marketing Executive Host. Dannenbring v. Wynn Las Vegas, LLC, 2016 U.S. App. LEXIS 5715 (9th Cir. Nev. Mar. 28, 2016).

Have You Trained Your Supervisors on Wage & Hour Compliance?

When sexual harassment lawsuits started becoming a major liability issue for employers, many employers sensibly responded by requiring their supervisory employees to go through mandatory anti-harassment training. There is at least some data to suggest that training and other preventive measures have done some good. For example, statistics published on the EEOC’s website (here and here) show a more-or-less steady decline in the number of harassment charges filed with the agency each fiscal year, from a high of 15,889 charges in FY1997 to just 6,822 charges in FY2015.

U.S. Department of Labor Poised to Issue Final Rule Expanding Overtime Eligibility

The U.S. Department of Labor’s Final Rule raising the salary threshold applicable to the so-called white collar exemptions under the Fair Labor Standards Act will likely take effect within the next few months. The Final Rule was submitted last week by the DOL to the White House Office of Management and Budget, a necessary first step before publication in the Federal Register. The new regulations are expected to expand by millions the number of employees eligible for overtime pay.

New Federal Overtime Regulations Expected to Be Published in Next Few Months

Last year, the Department of Labor (“DOL”) published proposed regulations overhauling the federal white collar overtime exemptions. In its proposed regulations, the DOL proposed increasing the minimum salary to qualify for exempt status (under the white collar exemptions for administrative, executive, and professional employees) from $23,660 per year to approximately $50,440 per year, and increasing the minimum salary to qualify for the highly compensated employee exemption from $100,000 per year to approximately $122,148 per year.