Post on 15-Apr-2017
A PRIMER FOR STAFFING COMPANIES
NAVIGATING THE PERILS OF THE NEW OVERTIME REGULATIONS:
PANELISTS:Marty Borosko, Managing MemberBecker LLC
Martin Borosko is a Managing Member of Becker LLC, a mid-market law firm, and co-chair of the firm’s staffing group. Martin has 20 years of
experience handling complex corporate structuring matters and commercial disputes in healthcare and staffing. He counsels companies on corporate
matters impacting strategy and growth. Martin has received several honors including “40 Under 40” by the New Jersey Law Journal and named a New
Jersey Super Lawyer 2009-2012. He received his Bachelor of Arts degree from the College of New Jersey and Juris Doctorate from the Rutgers
School of Law – Newark.
Brian E. Curtis, Esq.
Becker LLC
Brian E. Curtis, Esq. is a recognized authority in the areas of employment law and litigation, human resources management, and contract law, and
serves as Counsel to Becker LLC. Curtis is a highly skilled, action-oriented lawyer and business consultant with extensive experience in executive-level
and management employment matters, with an emphasis on the staffing, hospitality, and healthcare industries.
Brian J. Hoffman, Partner
Citrin Cooperman
B.J. Hoffman is a tax partner with over 23 years of experience in the areas of audit, tax, and litigation support. He serves clients in a wide range of
industries, including closely held entities in staffing, as well as law firms. As a tax specialist and CFE, B.J. counsels clients with a range of strategies,
including detailed year-end multi-jurisdictional planning, which helps clients reduce income tax exposure. He also devotes a substantial amount of time
to the area of trust and estate income taxation. B.J.’s practice often goes beyond tax and audit work to include looking for fraud, waste, and abuse
in order to improve his clients’ profitability.. B.J. received his B.S. in Accounting, Magna Cum Laude, from Lehigh University’s School of Business and
Economics.
ELECTION UPDATE AND POTENTIAL IMPACT ON OVERTIME REGULATIONS
THE BASICS
Department of Labor’s effective date (12-1)
Most salaried employees earning less than $47,446 annually ($913/week) need to be paid
time and a half for 40 hours per week, up from $23,660 annually ($455/week), a major
expansion of eligibility
Those earning more than these amounts are generally exempt
Thresholds to be revised every 3 years in the future
Whether/how much employee bonuses and commissions can count towards these salary
limits
Highly Compensated Employee exemption raised from $100,000 to $134,004 in annual
compensation, also
Co-employment issue for staffing companies – who is responsible – staffing company or
client (probably the staffing co)
COMPLIANCE
Need to evaluate workforce makeup / census to determine possible employee
eligibility
Convert annual salaries into hourly pay rates to determine exposure for non-exempts
Evaluation of adequacy of existing timekeeping systems – some companies do not
track salaried employees’ hours – must change
Evaluation of “off the time clock” demands upon employees (travel between offices,
requirement to respond to overnight emails, etc. can drive up compensable hours) –
May need to adopt new policies and procedures to limit such exposure
Consider conducting a self-audit of payroll policies
STRATEGIC RESPONSES
Possibility of increasing employee wages above thresholds of OT – watch out for wage
ripple effect, however
Close monitoring of hours worked, adoption of OT authorization policies
Juggling of employee responsibilities, so that additional hours taken on by those with
compensation above OT threshold
Increasing employee headcount/reducing individual employee hours
Or, just pay the OT
Adoption of class action waivers during onboarding
Modifying client contracts so that the staffing company’s clients must reimburse for OT
of contract workers
QUESTIONS AND ANSWERS