How will the FLSA Changes Affect You?

You may not have heard but the FLSA is changing the rules effective

December 1st 2016… Such fun!

What do you mean you don’t know what the

rules are to begin with?

For a full list go here!

So what’s the change?

Why don’t you take a seat…

There are a few, but the one we need you to focus on is the new

wage threshold.

You may currently have a number of employees who are exempt

(salaried) for a variety of reasons… however once the new rule goes

into effect any employee who earns less than $47,476 annually, or $913 per week, will be considered non-

exempt (hourly) regardless of other factors!

Think of it this way…

One employee working 50 hours a

week who becomes a non-exempt

employee will see a pay increase of

37.5%That’s (40 hours + (10 hours x 1.5 [which is the overtime rate] = 15) = 55 hours

If that person was earning $45,000…

A 37.5% increase over the course of a

year will cost you

$16,875

Now don’t overreact!

Go to your happy place…

The 1st thing you need to do is determine how many of your employees will be effected.

Then find out how far below $47,476 they are as well as how much overtime they usually work.

THINK strategically…

It may be better to consider a raise rather than overtime…

Just remember you have to be consistent within job categories…

The 2nd thing you will need to do is make sure you are set up to track time…

You will need to account for all

time worked by

all of your non-exempt employees.

Without making people feel like they just got dropped

here

And, finally how will you communicate these changes

to your team?

We know you can handle this change…

But if you feel like you could use

some assistance…

We’re here to help

Because we don’t ever want you to run afoul of the DOL for something like

this

If the paperwork is piling up…

Shoot us an e-mail at info@hr-haven.com!

We’ll review each of your position

descriptions to determine whether

you have each position properly

classified under FLSA (a really good idea,

even before the regulation changes).

Create a current market data report for each position.

Examine your timekeeping practices, because hourly

employees have to track their time to ensure they’re compliant.

(and help you fix them if you’re not)

Help you create safeguards to limit your legal exposure

(i.e. strategies to keep your overtime in check).

And help you create a communication plan to introduce

the changes

You don’t have to go it

alone…

www.hr-haven.com913.940.5391

Send your questions to: info@hr-haven.com!