Post on 12-Feb-2017
F EDERA L OVER T IME L AWS
FAIR LABORSTANDARDS ACT
*Intended to
provide employee
protection
Increases the
Salary Threshold
and defines
Exempt Employee
Duties
Salary
Threshold
updates &
Duties test
FEDERAL OVERTIMERULE
EFFECTIVEDECEMBER 1 , 2016
1 .PROFESSIONALS
Highly Skilled, Semi-Self
Employed or Highly Creative
Attorneys, Doctors, Dentists,
Teachers, Clergy, Innovators,
Actors, Composers Writers
2 .EXECUTIVES & MANAGERS
Business owners 20% or
more equity ownership and
employee of the business are
considered exempt
01
02
03
EXECUTIVE EMPLOYEEPrimary Duty is to manage the Business, division or subdivision of the enterprise
01
02
03
EXECUTIVE EMPLOYEEPrimary Duty is to manage the Business, division or subdivision of the enterprise
MANAGERSManages 2 or more employeesPrimary duties are management duties Have Decision Making Authority
01
02
03
EXECUTIVE EMPLOYEEPrimary Duty is to manage the Business, division or subdivision of the enterprise
MANAGERSManages 2 or more employeesPrimary duties are management duties Have Decision Making Authority
DECISION MAKINGHas weight in decision making overhiring/ firing, salary range, promotion, &salary range
01
02
03
EXECUTIVE EMPLOYEEPrimary Duty is to manage the Business, division or subdivision of the enterprise
MANAGERSManages 2 or more employeesPrimary duties are management duties Have Decision Making Authority
DECISION MAKINGHas weight in decision making overhiring/ firing, salary range, promotion, &salary range
3 .ADMINISTRATORS
Some Examples
Include: Human Resources,
Payroll, Accounting, Finance,
Quality Control, Public
Relations, Computer
Networks, Internet Marketing,
Research, Data Base Admin,
Advertising, Insurance,
Procurement, Compliance
01
02
03
ADMINISTRATIVE/ OFFICE NonManual Work, Administrative orOffice Work Directly related to themanagement, general businessoperations, or management of business'semployees.
01
02
03
ADMINISTRATIVE/ OFFICE NonManual Work, Administrative orOffice Work Directly related to themanagement, general businessoperations, or management of business'semployees.
INDEPENDENT JUDGEMENTHas authority to exercise judgementabout matters of significance related tothe business.
01
02
03
ADMINISTRATIVE/ OFFICE NonManual Work, Administrative orOffice Work Directly related to themanagement, general businessoperations, or management of business'semployees.
INDEPENDENT JUDGEMENTHas authority to exercise judgementabout matters of significance related tothe business.
NOT CLERICAL Ability to Make Decisions Free fromImmediate Supervision.Their decisions can severely impact thebusiness.
01
02
03
ADMINISTRATIVE/ OFFICE NonManual Work, Administrative orOffice Work Directly related to themanagement, general businessoperations, or management of business'semployees.
INDEPENDENT JUDGEMENTHas authority to exercise judgementabout matters of significance related tothe business.
NOT CLERICAL Ability to Make Decisions Free fromImmediate Supervision.Their decisions can severely impact thebusiness.
The Department of LaborIncreases Fines again forViolations of the Federal Overtime Law
$1,925 per violation
FINES &PENALTIESINCREASED
01
02
03
INCREASE SALARY TO $47,476If your employee makes around $45,000or more, consider increasing their wagesand keeping them exempt.
01
02
03
INCREASE SALARY TO $47,476If your employee makes around $45,000or more, consider increasing their wagesand keeping them exempt.
MOVE TO NON-EXEMPTIf your employee makes less, thenconsider how many hours of overtimethey put in on a weekly average
01
02
03
INCREASE SALARY TO $47,476If your employee makes around $45,000or more, consider increasing their wagesand keeping them exempt.
MOVE TO NON-EXEMPTIf your employee makes less, thenconsider how many hours of overtimethey put in on a weekly average
OFF LOAD THEIR WORK LOADCan their workload be offset byresigning tasks to exempt employees orby hiring lower paid hourly employees?
01
02
03
INCREASE SALARY TO $47,476If your employee makes around $45,000or more, consider increasing their wagesand keeping them exempt.
MOVE TO NON-EXEMPTIf your employee makes less, thenconsider how many hours of overtimethey put in on a weekly average
OFF LOAD THEIR WORK LOADCan their workload be offset byresigning tasks to exempt employees orby hiring lower paid hourly employees?
Remember that the ExemptSalary Threshold will adjustevery 3 years.
Can you afford to continueraising wages to stay abovethe new thresholds?
T RA I N , EDUCA T ED , I N FORM
PROACTIVE IS BEST
Previously exempt
employees may
feel they are
being demoted to
hourly
Why do I have to
punch a clock?
Doesn't the
company trust meanymore?
Prior approvalneeded?
What isallowed?
Exceptions?
MANAGERS TO FIELDQUESTIONS
OUTLINE COMPANY 'SOVERTIME POLICY
01
02
03
AUTOMATICALLY TRACKSEmployee hours, Overtime hours, PaidTime Off, and Sick Leave areautomatically tracked
01
02
03
AUTOMATICALLY TRACKSEmployee hours, Overtime hours, PaidTime Off, and Sick Leave areautomatically tracked
DECREASES RISK OF NON-COMPLIANCEBy automatically recording overtimehours and retaining records.
01
02
03
AUTOMATICALLY TRACKSEmployee hours, Overtime hours, PaidTime Off, and Sick Leave areautomatically tracked
DECREASES RISK OF NON-COMPLIANCEBy automatically recording overtimehours and retaining records.
ASSUMED GUILT BY DOLThe Department of Labor assumes guiltwhen companies can't provide records,or when records aren't complete.Manuel time sheets are easilylost/misplaced or fraudulently altered.
01
02
03
AUTOMATICALLY TRACKSEmployee hours, Overtime hours, PaidTime Off, and Sick Leave areautomatically tracked
DECREASES RISK OF NON-COMPLIANCEBy automatically recording overtimehours and retaining records.
ASSUMED GUILT BY DOLThe Department of Labor assumes guiltwhen companies can't provide records,or when records aren't complete.Manuel time sheets are easilylost/misplaced or fraudulently altered.