slideshare prepare for new overtime regs - scs
TRANSCRIPT
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Get Ready for 2016 Overtime Regulations
What you need to know… even when you have only 1 employee!
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What is “FLSA”?
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What is “FLSA”?
Fair Labor Standards Act
Legislation regulating wages and hours
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How does it impact overtime pay?
•FLSA defines employees that are:
•“Exempt” from overtime
•“Non-Exempt” from overtime
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How does it impact overtime pay?
•FLSA defines employees that are:
•“Exempt” from overtime
•“Non-Exempt” from overtime
Those GET PAID OVERTIME
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Who Is Exempt?
• E-A-P are the most common “White collar” exemptions
• Administrative
• Professional
• Executive
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Who Is Exempt?
• Must pass the exemption test in 3 parts:
• Get paid on salary basis
AND
• Meet the requirement test (E-A-P)
AND
• Meet a minimum salary test
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Who Is Exempt?
• Must pass the exemption test in 3 parts:
• Get paid on salary basis
AND
• Meet the requirement test (E-A-P)
AND
• Meet a minimum salary test
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Who is Non-Exempt?
• If an employee doesn’t meet the exemption test, this employee is non-exempt
• Non-Exempt is the default
• 59% of workforce is non-exempt (2015)
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MeetJackie
• Assistant Manager• Jackie’s job:• Manages 5 employees • Sets work hours• Hires new employees • In charge of discipline • Covers for her boss• Sometimes works weekends • Answers emails after hours
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MeetJackie
• Assistant Manager• Jackie’s job:• Manages 5 employees • Sets work hours• Hires new employees • In charge of discipline • Covers for her boss• Sometimes works weekends • Answers emails after hours
• Jackie’s salary: $45,000 • Jackie is currently exempt
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MeetJackie
• Assistant Manager• Jackie’s job:• Manages 5 employees • Sets work hours• Hires new employees • In charge of discipline • Covers for her boss• Sometimes works weekends • Answers emails after hours
• Jackie’s salary: $45,000 • Jackie is currently exempt
This is the type of employee most impacted by the change in “white collar” exemption
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White Collar Exemption
Final Rule by the Department Of Labor rule
• Exemption salary raised to $47,476/year ($913/week)
What is changing?
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White Collar Exemption
Final Rule by the Department Of Labor rule
• Exemption salary raised to $47,476/year ($913/week)
• Automatic increase every 3 years
What is changing?
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White Collar Exemption
Final Rule by the Department Of Labor rule
• Exemption salary raised to $47,476/year ($913/week)
• Automatic increase every 3 years
• 10% salary from bonus and commission
• Effective December 1st 2016
What is changing?
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What does this mean for Jackie?
Uncertainty
Jackie’s salary ($45,000) < Exemption level ($50,440)
• Will she remain “management”?
• Will she earn overtime pay?
• Will her income be impacted?
?
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What does this mean for Jackie?
Uncertainty
Jackie’s salary ($45,000) < Exemption level ($50,440)
• Will she remain “management”?
• Will she earn overtime pay?
• Will her income be impacted?
It depends on what her
employer decides to do.
?
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Meet Henry
• Jackie’s Manager
• He needs to figure out how to prepare for the new overtime regulations
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If you are like Henry
• You need to understand the financial impact to your business
• You need to assess your areas of risk
• You want to be prepared for the change
• You want to do the right thing for your business
• You want to be fair to your employees
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Help is available
Click here to connect to my free on-demand webinar (with audio!)
In this FREE webinar, you will get:
• A step-by-step action plan to handle your classification changes
• Scenarios and options to consider
• Access to additional resources
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Gere Consulting
• FLSA projects
• Policy development
• Job descriptions
• Employee relations
• Management skills
HR projects Training Support Solo HR
• When your HR resigns
• Working on special projects
How We Help Employers
www.GereConsulting.com/product/OTready
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Thank you!
www.gereconsulting.com/freeconsult
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“Many of the most daunting issues I’ve faced as owner of a quickly growing business are related to human resources. Anne-Lise has provided me prompt, actionable advice and information on several employee issues. I look forward to our continued relationship to support my business.”Dave Hunt – President, Crossrope LLC
Anne-Lise Gere, SPHR