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Prepare for overtime changes in retail, hospitality industries

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in Human Resources,Overtime Labor Laws

The U.S. Department of Labor’s (DOL) proposed amendments to the Fair Labor Standards Act (FLSA), will have an enormous impact on employers in the retail and hospitality industries.

If the rules stand as currently proposed, they will:
  • Dramatically increase the minimum salary required for most employees who qualify for FLSA white-collar exemptions
  • Substantially increase in the minimum compensation required for an employee to qualify for the Highly Compensated Employee exemption
  • Tie annual adjustments to these minimums to changes in the Consumer Price Index.

The DOL sought comments on two issues of importance to retail and hospitality employers:

  1. Whether changes should be made to the “duties tests” for the exemptions
  2. Whether employers should be allowed to use nondiscretionary bonuses to satisfy some portion of the minimum salary requirements for the executive, administrative and professional exemptions to the overtime r...(register to read more)

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