Your company could be forced to shell out more overtime pay to lower-paid workers under a long-awaited Labor Department modernization of the Fair Labor Standards Act (). On the bright side, certain higher-paid professionals would no longer be eligible for overtime pay, and the easier-to-understand rules would make it simpler for companies to decide who is due overtime and who is exempt.
Results: A mixed bag
One major change: The "salary level" threshold for exempt status would increase from $155 per week to $425 per week. That, in effect, means employees earning below $22,100 a year would automatically qualify for overtime pay. That change alone, the government estimates, would convert 1.3 million workers from exempt status (not eligible for overtime) to nonexempt status (eligible for overtime).
Better news: The rules are simpler, so you'll face less legal risk of unintentionally misclassifying employees as ...(register to read more)
- Remember the WARN Act when making reductions in force
- Use patience when disciplining employee who requested FMLA leave
- Interns fighting back: Must you pay them?
- If possible, have the manager who hired the employee also do the firing
- Ex-employees: Gone but not forgotten Courts' broader definition of 'employee' expands your liability