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FAQs on the Final Overtime Regulations

On May 18, the U.S. Department of Labor’s (DOL) Wage and Hour Division released the new final overtime rule. The new minimum salary level for the executive, administrative, and professional employee exemptions under the Fair Labor Standards Act (FLSA) will be $913 per week, or $47,476 per year, under final regulations. This new salary threshold—which will become effective on December 1, 2016—more than doubles the current minimum salary level of $455 per week, or $23,660 per year and will have a dramatic impact on employers. Below are answers to some frequently asked questions about the new rule.

Employers Can Claim Tip Credit Even When Employees Perform 'Related Duties,' 7th Circuit Rules

Restaurants and other employers that require wait staff, bartenders and other tipped employees to clean tables, make coffee or perform other similar duties can draw comfort from a new appeals court ruling.

Is proposed legislation likely to slow the implementation of the new overtime regulations? Probably not.

On May 18, 2016, the Department of Labor (DOL) announced the publication of a final rule, updating its existing overtime regulations. The updated regulations are scheduled to become effective on December 1 of this year and are predicted to extend overtime pay protections to over 4 million workers within the first year of implementation. The updates include a provision under which employees are eligible for overtime compensation if they work over 40 hours in a week and earn less than $47,476 per year – an over 100% increase from the current salary threshold of $23,660.

Share FAQs on the Final Overtime Regulations

On May 18, the U.S. Department of Labor’s (DOL) Wage and Hour Division released the new final overtime rule. The new minimum salary level for the executive, administrative, and professional employee exemptions under the Fair Labor Standards Act (FLSA) will be $913 per week, or $47,476 per year, under final regulations. This new salary threshold—which will become effective on December 1, 2016—more than doubles the current minimum salary level of $455 per week, or $23,660 per year and will have a dramatic impact on employers. Below are answers to some frequently asked questions about the new rule.

Lawmakers Introduce Legislation to Phase In New Overtime Exemption Regulations

A group of Democratic lawmakers (yes, you read that right) have introduced legislation aimed at easing the sting of the new federal overtime exemption regulations that currently are slated to take effect December 1, 2016. Under the new regulations, the minimum annual salary to qualify for exempt status increases over 100% from $23,660 to $47,476. Under proposed legislation dubbed the Overtime Reform and Enhancement Act, implementation of the new overtime regulations would be revised to gradually phase in the salary increase over three years, beginning with a 50% increase to $35,984 effective December 1, 2016. In subsequent years, the minimum salary threshold would increase as follows:

Uniform Wage Garnishment Law Would Streamline Process for Employers

The Uniform Law Commission has released a draft Uniform Wage Garnishment Act (UWGA) which, if enacted by state legislatures, would streamline and ease employer administration of creditor garnishments by standardizing many elements that now vary by state law.

Gig Employer Heartburn: Challenge to GrubHub’s Classification System Continues

A putative class action case, alleging that online food delivery service GrubHub misclassified its drivers, has survived a motion to dismiss and will proceed in California federal court. Noting that GrubHub’s view of the facts may ultimately prevail, U.S. Magistrate Judge Jacqueline Scott Corley said that at this stage, the drivers’ pleadings gave rise to “plausible inference” that they should not have been classified as independent contractors, and thus may have impermissibly been denied minimum wage and overtime pay.

Uniform Wage Garnishment Act Approved by Commission

What employer would not like to reduce its legal risks and administrative costs? The Uniform Law Commission (ULC) presented employers with just that opportunity when on July 13, 2016 it finished three years of studying and drafting work and gave approval to the Uniform Wage Garnishment Act (UWGA). The ULC is a 125-year-old organization comprised of commissioners appointed by the 50 states (plus Puerto Rico and the Virgin Islands) that drafts laws for the states to consider and adopt where uniformity would improve commerce between states. After the ULC approves a uniform law, such as the UWGA, the commissioners of each state will present the statute for consideration to their state legislature.

Cash in Lieu of Benefits Must Be Included in Overtime Calculations, 9th Cir. Rules

Employers that provide cash payments to employees who have health care coverage through a spouse or other means may find themselves thinking of the old adage that "no good deed goes unpunished" in the wake of a new appeals court ruling.

DOL's Stance On Worker Misclassification Belies The Modern Business World

A short time ago, in a location not too far away (Washington, D.C.), the U.S. Department of Labor issued a new interpretation in an effort to further crack down on the perceived problem of employee misclassification. This was yet another example of the government being out of step with the realities of the modern business world. So much so, in fact, that the DOL would probably apply its predictable and out-of-date rules beyond the modern business world to worlds beyond our galaxy. In fact, the agency would likely find that a popular Star Wars character is an employee and not an independent contractor.