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