SALARY LEVEL FOR WHO’S EXEMPT HAS INCREASED TO $913 PER WEEK

In addition to releasing final regs changing the requirements for who’s exempt from overtime, the Dept. of Labor has issued guidance that contains further details.

Here’s an overview of the guidance broken down by sector.

Private employers

Now that the salary level has increased to $913 per week, some options for complying with the Fair Labor Standards Act (FLSA) regs are to raise salaries, pay overtime, realign employees’ workload, and adjust base pay and pay overtime.

Info: www.dol.gov/whd/overtime/final2016/general-guidance.pdf

Non Profits

As before, some nonprofits whose annual sales or business done is less than $500,000 are subject to the FLSA and therefore need to comply with the new regs. They are:

Hospitals

Schools and preschools

Government agencies, and

Business providing medical or nursing care for residents.

Info: www.dol.gov/whd/overtime/final2016/nonprofit-guidance.pdf

Higher Education

As the salary level and salary basis don’t apply to bona fide teachers, the regs won’t have an impact on these employees or other employees who are subject to a special alternative salary level.

But pay attention to workers whose duties aren’t unique to the education setting, like managers in food service or at the bookstore.

Info: www.dol.gov/whd/overtime/final2016/highered-guidance.pdf

State and Local governments

For state and local governments that need to reclassify some employees as nonexempt, comp time is an alternative to cash payments for overtime.

Comp time must be provided at a rate of one-and-a-half hours for each overtime hours worked. They 240-hour accrual limit still applies.

Info: www.dol.gov/sites/default/files/overtime-government.pdf