In just two months, sweeping changes to the Fair Labor Standards Act will make 4.2 million currently exempt employees eligible for overtime. Employers must either increase the salary of currently exempt employees or reclassify them as hourly wage earners, which will make them eligible for the overtime pay.
As an employer, are you prepared to make such moves?
Effective December 1, the salary threshold for “exempt” status under the Fair Labor Standards Act will jump to $47,476 a year from the current $23,660, allowing more workers to qualify for time-and-a-half pay if they work more than 40 hours a week. And, for the first time, the salary threshold will be indexed once every three years. So the next update will be on January 1, 2020, when the new level is expected to be more than $51,000 (based on salary growth in the lowest region of the country).
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