Fair Labor Standards Act (FLSA) New Rules Suspended

Posted by on Nov 29, 2016 in Uncategorized

The new FLSA rules that were scheduled to take effect on December 1, 2016 were suspended by a federal judge last week. This means employers are not required to implement the new rules regarding treating employees who make less than $47,476 as “non-exempt” under the FLSA. Of course, if you’ve made promises for raises, those may be hard to reverse.  However, the ruling does mean that employees earning $23,660 or more per year (the current salary level) may be spared from adding overtime recordkeeping obligations and may continue to take advantage of flex-time arrangements if they meet the other tests for being “exempt.” Keep in mind that the new FLSA rules did not change the definitions of the various exemptions, including Executive, Administrative, Professional, Computer or Outside Sales, and did not change the salary basis test. https://www.dol.gov/whd/overtime/fs17a_overview.pdf

Your employees still have to meet these tests to be exempt.

So, as part of your evaluation of the FLSA over the past few months, if you identified any necessary clean up related to classification of exempt employees (other than salary level), you should still address those issues. We will update you if we learn anything more about the proposed changes.