Is your Organization Ready for the FLSA Changes?
There are some BIG changes coming to FLSA, if you want to learn more attend our session with P&N where their HR Consultant will cover some important information regarding these changes!
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Thursday, September 22, 2016
12:00 PM – 2:00 PM
4035 Washington Ave
New Orleans, LA 70125
WHAT IS THE FAIR LABOR STANDARDS ACT?
The Fair Labor Standards Act of 1938 as Amended (FLSA) guarantees a minimum wage and overtime pay at a rate of not less than one and one-half times the employee’s regular rate for hours worked over 40 in a workweek. This protection extends to most workers; however, the FLSA exempts certain executive, administrative and professional (EAP or “white collar”) employees.
EXEMPTION TEST AND RULE CHANGE
Employees must meet the following in order to qualify for exemption:
1. Salary Basis Test – Predetermined and xed salary that is not subject to reduction because of variations in the quality or quantity of work performed; and
2. Salary Level Test – The amount of salary paid must meet a minimum specified amount. Effective December 1, 2016 the rule change increases the minimum salary to higher levels.
3. Duties Test – The employee’s job duties must primarily involve executive, administrative or professional duties as de ned by the regulation. HCE’s are subject to a minimal duties test.
Automatic Updating – The final rule includes a mechanism to automatically update the salary level every three years.
Added Compensation – Employers will be able to use non-discretionary bonuses and incentive payments (including commissions) to satisfy up to 10% of the Standard Salary Level. HCE’s must receive at least the Standard Salary Level before counting non- discretionary bonuses and incentive payments.