On May 18, 2016, the U.S. Department of Labor issued its long awaited overtime rule changing the salary basis requirement for overtime exemption from $455 per week to $913 per week and set the total annual compensation requirement for highly compensated employees at $134,004. This is a significant change that will pose challenges for Maine employers today and in the future.
The new rule, effective December 1, 2016, redefines which white-collar employees, including executive, administrative, professional, outside sales and computer employees, are protected by the Fair Labor Standards Act (FLSA) minimum wage and overtime standards. We’ll help you understand the new Final Rule as compared to the old rule – what changed and didn’t change, and the legal and financial implications for your business.
We’ll address the following issues and answer your questions:
- Do your current “exempt” employees’ salaries meet the new threshold for “exempt” status?
- Have you budgeted for significant salary increases for exempt employees?
- Have you considered how to structure salaries for higher-level exempt employees when the new minimum salaries go into effect?
- Is reclassification of exempt employees to hourly a viable option, considering overtime pay requirements?
- Are lay-offs a possibility or probability and, if so, how should you prepare?
12:00 PM – 1:00 PM, October 12, Machias Savings Bank, 96 Cottage Street