Sage Solutions Group’s Post

It's a double post day for PERKS! Let's talk about federal OVERTIME laws! The Department of Labor's Wage and Hour Division has released a new proposed overtime rule that would raise the federal minimum exempt annual salary to $55,068 (higher than the federal minimum exempt salary proposed by the DOL under President Obama, which was blocked from implementation by a federal court injunction back in 2017) and raising the minimum exempt salary for the highly compensated employee exemption to $143,988. According to the DOL's Notice of Proposed Rulemaking (NPRM), these proposed changes were derived by "increasing the standard salary level to the 35th percentile of weekly earnings of full-time salaried workers in the lowest-wage Census Region (currently the South)—$1,059 per week ($55,068 annually for a full-year worker)—and increasing the highly compensated employee total annual compensation threshold to the annualized weekly earnings of the 85th percentile of full-time salaried workers nationally ($143,988)." The proposed rule also includes an automatic review and update of these minimums every 3 years to ensure the exempt minimums and highly compensated employee annual compensation requirement are accurately reflective of then current economic conditions. As soon as the NPRM is published in the Federal Register, there will be a 60-day public comment period. You can submit comments electronically or by mail per the instructions in the NPRM, found here: https://lnkd.in/g_aAi69p FAQs on the proposed rule are available here: https://lnkd.in/eqWdrPUp Note that even if the federal exempt minimums increase as proposed in the NPRM, employers will still need to comply with state overtime laws, many of which -- including New York and California -- already have higher exempt minimum requirements than those proposed by the DOL. #overtime #FLSA #NPRM #anticipatecomments #DGPERKS

Employers nationwide will need to watch this closely. The DOL is once again endeavoring to raise both the minimum exempt salary for workers and the minimum salary to qualify for the highly compensated exemption, both of which could impact the compensation of millions of workers in the United States. The public will have 60 days to comment once the NPRM is published in the Federal Register. #WeighIn #FLSA #Overtime #ExemptSalaries #DGPERKS

The proposed changes to the Fair Labor Standards Act (FLSA) by the U.S. Department of Labor (DOL) will have a ripple effect on employers. Here are some key considerations: 1️⃣ Budget Revisions: Employers will need to revisit their payroll budgets to accommodate the increased salary threshold for overtime exemptions. This could lead to higher operational costs. 2️⃣ Compliance: Keeping up with the new rules will require administrative adjustments. Employers must ensure their HR systems are updated to automatically adjust the salary threshold every three years. 3️⃣ Employee Classification: The reclassification of employees from exempt to non-exempt status will require careful planning. Employers must also consider the "duties tests" that accompany the salary threshold. 4️⃣ Competitive Edge: While the new rules aim to level the playing field, employers offering salaries above the new threshold may use this as a competitive advantage in talent acquisition. 5️⃣ Sector-Specific Impact: Industries like retail, hospitality, and healthcare, where a significant number of workers are expected to benefit from the new rules, may face unique challenges in implementation. 6️⃣ Public Input: Employers have an opportunity to provide feedback during the public comment period, which could influence the final rule. 7️⃣ Legal Risks: Non-compliance could result in legal repercussions, including fines and back pay for employees. 8️⃣ Morale and Productivity: While the changes aim to benefit workers, they could also lead to improved job satisfaction and productivity, which is a win-win for employers in the long run. In summary, while the proposed changes aim to benefit workers, they also present challenges and opportunities for employers. Proactive planning and stakeholder input will be key to navigating this significant policy shift. #DOL #FLSA #Employers #HRM #Compliance #BudgetPlanning https://lnkd.in/gcXAfhdi

Per the post below, the DOL may raise the minimum exempt salary for employees and the minimum salary to qualify for the highly compensated exemption, affecting overtime calculations. More to come on this one…see the expected timing and implications in the post below. Follow D G Perks to keep on top of this and other breaking developments. #FLSA #Overtime #Exempt #Follow_DGPERKS

This is a pretty important one: The US Department of Labor's Wage and Hour Division has proposed significant updates to American overtime rules. Key takeaways from the proposed regulations: •   They increase the FLSA regulations’ standard salary level for overtime exemptions from $684 per week ($35,568 per year) to $1,059 per week ($55,068 per year) . •   They increase the total annual compensation requirement for the highly compensated employee overtime exemption from $107,432 per year to $143,988 per year . •   They automatically update earnings thresholds every three years to keep pace with worker salary changes (updates were previously done ad hoc through subsequent rulemaking). It will be important to keep an eye on these rules as they go through notice and comment, as they represent a political priority of the current administration and will likely be pushed through in some form prior to November 2024. While many will likely file legal challenges, as with any major regulation these days, due to the powers granted to the Department of Labor in the Fair Labor Standards Act, those challenges will face an uphill climb to success. Bottom line: Plan now for increased employment costs in 2025 and beyond. If the current tight labor market continues, these regulations can be reasonably expected to have downstream effects in raising wages across the board, whether by employers paying more employees overtime or by employers increasing employee salaries to avoid overtime calculations. https://lnkd.in/ea7AwE8A

The U.S. Department of Labor just announced its proposal to increase the Fair Labor Standards Act's (FLSA) salary-level threshold from $35,568 to $55,068, which would result in many more employees being entitled to overtime. So, even if an employee is performing otherwise "exempt" duties, they will still be entitled to overtime for hours worked over 40 unless they are paid at least a salary of $1,059 per week. For our New York clients, this increase will have no effect, because New York's salary threshold is higher than the proposed increase under the FLSA. As of December 21, 2022, New York's annual salary threshold is $58,500 for New York City, Long Island and Westchester, and $55,341 for the rest of the state. (This will likely increase in 2024 in line with planned minimum wage increases that will take effect on January 1.) Our Connecticut and Massachusetts clients, however, would experience a significant increase in the salary-level threshold should the Department of Labor's increase become final. Currently, the salary-level threshold in Connecticut and Massachusetts is $35,568 (or $684 per week). The Department of Labor will consider written comments on its proposal for the next 60 days. It seems likely that the salary-level threshold will increase, although it is too soon to say whether it will increase at the proposed level. Please feel free to reach out to Murtha Cullina LLP's Labor & Employment group if you have any questions. #overtime #exemption #departmentoflabor #flsa

DOTHAN, AL – The U.S. Department of Labor has recovered $127,249 in back wages and liquidated damages for 26 workers at an aviation maintenance shop employed by a Dothan staffing company that misclassified them as independent contractors and denied overtime wages. Investigators with the department’s Wage and Hour Division found that Lucero Aerospace Staffing Solutions LLC paid workers straight-time rates for all hours and failed to pay the additional half-time rate required for hours over 40 in a workweek. In addition, the employer failed to pay one worker at least the federal minimum wage of $7.25 per hour, all violations of the Fair Labor Standards Act. “Employers are legally obligated to pay and classify their workers correctly and to keep accurate records of all time worked by these individuals,” said Wage and Hour Division District Director Kenneth Stripling in Birmingham, Alabama. “Misclassification deprives workers of their full wages, benefits and protections, cheats law-abiding employers and harms communities when payroll taxes are not paid.”In Alabama, the division has recovered more than $513,868 waiting to be claimed for 1,476 workers and offers a workers owed wages search tool that people can use to see if they are owed back wages collected by the agency. Workers who feel they may not be getting the wages they earned or are misclassified as independent contractors may contact a Wage and Hour Division representative in their state through a list and interactive online map on the agency’s website. Workers and employers can contact the division confidentially at its toll-free number, 1-866-4-US-WAGE (487-9243). The division also offers online resources for employers, such as a fact sheet on Fair Labor Standards Act overtime pay requirements. Workers and employers can help ensure hours worked and pay are accurate by downloading the department’s Android or iOS Timesheet App for free and available in English and Spanish. Learn more about the Wage and Hour Division.

Wage and hour update: Department of Labor issued its long-awaited notice of proposed rulemaking (NPRM) today on new overtime regulations. As expected, there are proposed increases in standard salary level and the highly compensated employee total annual compensation threshold. NPRM also provides for an automatic updating mechanism that would allow for the "timely and efficient updating" of all the thresholds to reflect current earnings data. Note, proposed rules set forth in NPRM could change between now and publication of final rule. DOL's NPRM can be found here: https://lnkd.in/ggE5A2K6 Evansville-Area Human Resource Association Kahn, Dees, Donovan & Kahn, LLP - Attorneys & Counselors At Law #hr #wageandhour #flsa

📢 Paying your employees correctly is crucial to stay on the right side of labor laws. Exempt employees receive a salary and are not covered by FLSA benefits like overtime pay. Key Insights: 🔹 Learn the difference between exempt and nonexempt employees. 🔹 Understand the criteria for exempt status - crucial for HR compliance. 🔹 Get insights on salary thresholds, including upcoming changes in 2024. https://hubs.la/Q02dzY8W0 #LaborLaws #EmployeeCompensation #StayCompliant