Big FLSA Changes Coming in July

As we all know, the Department of Labor has been holding its significant, proposed changes to the FLSA’s “white collar” exemption over management’s collective heads for quite a while now. Due to the volume of comments the DOL received during its mandatory 60-day comment window, the previously threatened “early 2016″ implementation of these new rules came and went with nothing happening.

The new word on the street is that these changes will be put into place sometime this coming July. The DOL regulatory agenda lists the new implementation date as “07/00/2016.” This means that all employers will have to comply with the new regulations within sixty (60) days of their implementation.

Accordingly, it’s time to get your “exemption” house in order. As I noted in prior blog entries, these proposed regulations threaten to increase the minimum exemption level to an annual salary floor of $50,440. This would more than double the current rate that has been in place for years.

For both large and small employers, this presents a radical change to our upcoming payroll structures. As usual, from a risk management standpoint, it makes sense to get in front of what you know is coming, rather than wait until the last minute to figure out what to do with the “working supervisor” making 48K a year.

Give me a call to discuss. Now is definitely the time to start that internal wage / hour audit.

Luke Lindberg