New DOL Ruling Increases the Salary Threshold for Exempt Employees

club-2492011_1920This morning the Department of Labor (DOL) announced the new salary threshold for exempt employees. Currently employees who meet certain job duties tests and are paid on a salary basis equal to at least $455 per week can be considered exempt from overtime. The new ruling increases the salary threshold from $455 per week to $684 per week. This new threshold is effective January 1, 2020.

The new threshold means that employers who have exempt employees making less than $684 need to either reclassify the employees as non-exempt (making them eligible for overtime pay when working more than 40 hours in a workweek ) or need to increase wages to be above the weekly minimum. Continue reading

Semi-Monthly Payrolls: Calculating Overtime Owed

Federal law requires that all non-exempt employees are paid at a rate of one and one half times their regular rate of pay for all hours worked over 40 in a workweek. This is pretty straightforward to figure out when a payroll is processed on a weekly or biweekly schedule because the number of days in the pay period remain the same. But for employers who pay their employees semi-monthly (i.e., the 1st and the 15th of the month) the number of work days fluctuate from one pay period to the next depending on the way the calendar falls.  Continue reading

Should We Be Paying Our Interns?

The Department of Labor (DOL) has recently released a statement adopting a “primary beneficiary” test to be used when determining whether an intern for a for-profit employer should be classified as an employee under the federal Fair Labor Standards Act (FLSA).  Continue reading

Five Employer Overtime Myths Debunked

The Federal Fair Labor Standards Act (FLSA) requires that employers pay all non-exempt employees at a rate of at least one and one half times their regular rate of pay for each hour worked over 40 hours in a workweek.  While this may seem straight forward, there are many misconceptions regarding when overtime is to be paid and to which employees.  Below is a list of five of the top myths associated with overtime pay.  Continue reading

Employees Working Unauthorized Overtime

If an employee is working overtime without permission from a manager, what options do you have as the employer?

Under federal law (The Fair Labor Standards Act or FLSA), if a non-exempt employee works more than 40 hours in a workweek they must be compensated at a rate of one and one half times their regular hourly rate for all hours over 40 in the week. If an employee is working, they must be paid for all time worked, even if the hours were not authorized by management. For example, if an employee is scheduled for 40 hours and works 46 hours, but the 6 hours of overtime weren’t approved by the employee’s manager, the employee must still be paid for all 46 hours worked.  Continue reading

Rules for Meal and Rest Periods

The Fair Labor Standards Act (FLSAcafe-675219_1920) does not require that employers provide any rest or meal breaks to employees other than for nursing mothers. However, if an employer decides to offer these breaks to their employees, the FLSA does provide some rules that must be followed:

  • Breaks of a short duration (typically 20 minutes or less) should be paid breaks that are counted as time worked and should be included in the total hours calculation for overtime purposes. This includes restroom breaks, breaks to get a beverage, smoke breaks, etc.
  • Meal periods (typically 30 minutes or more) can be omitted from total hours worked and can be unpaid breaks when an employee is relieved of all job responsibilities for the duration of the break.

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3 Common Myths Concerning Exempt and Salary Employees

With the new minimum salary threshold for exempt employees taking place later this year (Read more about that here), employers should concentrate on mausdol_seal_circa_2015_svgking sure they are in compliance with the new rules and also confirm that their exempt employees are correctly classified.  In addition, employers should make sure they fully understand how exempt employees should be paid.

To help employers with understanding payment of exempt employees, we’re debunking three common myths associated with exempt and salary employees.

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