New Minimum Salary Levels for Exempt Employees - Are You Ready?

New Minimum Salary Levels for Exempt Employees

Are You Ready?

Topic Background:

The Department of Labor recently released its long-awaited proposal on April 23, 2024 to increase the minimum salary to qualify for exempt status from $684 per week to $844 per week or from $35,568 to $43,888 annually on July 1, 2024 and to $1,128 per week =$58,656/year on January 1, 2025. Get ready for the upcoming changes. Not being totally prepared for the changes can be devastating to your organization from both a financial and employee relations standpoint.

The Fair Labor Standards Act (FLSA) is one of the most misunderstood employment laws in the country. Basically, it governs the payment of wages and who must be paid overtime. To make things more confusing, the Department of Labor has implemented a number of exemptions to the requirement to pay overtime such as the White-Collar Exemptions and the 7(i) exemption for retail and service establishments. The DOL also allows different ways of computing overtime pay.

Alaska, California, Colorado, Maine, New York and Washington have developed their own rules that are different from Federal Law. Thirty-three states have implemented minimum wages that are higher than the Federal Minimum wage of $7.25 per hour. In addition, many municipalities have their own minimum wage laws.

Many organizations do not understand their responsibilities with regard to what types of positions qualify as white-collar exemptions, how to handle commissions, shift differential and production bonuses for hourly employees, and other nuances of complying such as handling training and travel time.

The FLSA is a Federal Law, but employers must know that many states, municipalities, and any type of governmental contract may have their own rules regarding minimum wage and overtime.

Maintaining compliance is critical to your business. Failing to do so can cost hundreds of thousands of dollars.

Why should you attend:

After going through this webinar, participants will know:

• Gain an understanding of the New Provisions of the Fair Labor Standards Act regarding exempt employees
• Know the White-Collar Exemptions and how they are determined
• Determining other exemptions and overtime calculations
• Correctly calculating overtime pay for employees who receive commissions, production bonuses and shift differential
• Know the minimum wage in areas in which your organization operates
• When to pay for training, travel time, meal breaks or employees on-call
• Get an update on various State Regulations

Areas Covered in the Webinar:

• The Primary Provisions of the Federal Labor Standards Act
• Tests to Determine if a Position Qualifies for a White Collar Exemption
• Review of the Final Regulations Released by the Wage and Hour Division of the Department of Labor
• Other Exemptions Your Organization May Want to Consider
• Computing overtime pay for multiple pay rates
• Treatment of Meal Breaks, Travel, Training and Time Spent On-Call.
• Minimum Wage Requirements by State and Contract
• Recordkeeping and Posting Requirements
• What’s Going to Get You in Trouble?
• Action Items

Who will benefit:

All organizations in the United States involved in interstate commerce are covered by the Fair Labor Standards Act

Human Resources professionals, small business owners, supervisors, managers

Any and all industry associations, Small Business Networks, chambers of commerce, Human Resources Associations such as SHRM, training associations, Human Resources Groups, Small business associations such as Small Business Development Centers, Industry Associations – such as restaurant associations, hospitality groups, trade organizations.

About the Presenter: Bob McKenzie

Bob McKenzie has over 40 years of human resources management experience. His background includes a wide range of hands-on HR practices including in all aspects of Human Resources. And is a variety of industries in with private sector, public sector and nonprofit employers.