Beimdiek Blog

New FLSA Rules Affect Job Classification and Workers

The Fair Labor Standards Act (FLSA) is designed to protect American workers by guaranteeing them certain minimal levels of compensation. Of course, what constitutes “fair” is a matter of interpretation. Recently President Obama directed the Department of Labor to review and update the standards for classifying and compensating salaried workers. If your firm is unprepared to comply with the resulting changes, or if you aren't for sure if your firm is prepared, click here for our White Collar Exemption Rules Toolkit. The consequences can include significant financial liabilities for your organization and possibly even legal penalties.

Beimdiek FLSA White Collar Exemption Rules ToolkitStandards for Salaried Workers Are Changing

The new rules affect how salaried workers are compensated. In the past, for a company to consider an employee salaried, it had to compensate the worker a minimum of $450 per week or $23,663 per year. Under the revised guidelines, the company must pay the worker at least $921 per week or $47,892 per year.

At the same time, the Department of Labor (DOL) is considering reclassification of what types of positions qualify for salaried compensation. The rule of thumb is that, for a worker to be on salary, their job duties must fall within the parameters of professional, administrative, sales, or IT professions. But exactly what types of positions fall within these categories is a matter of debate. Under the new rules, many professions which were considered suitable for salaried compensation may no longer be so. Your firm may find itself having to provide overtime pay for employees who, in the past, received straight salaries regardless of how many hours they worked.

Download the FLSA White Collar Exemption Rules Toolkit

Understanding these updated guidelines is vital to your organization’s continued structure. If you’re a human resources professional, then the onus is on you to ensure you’re up-to-date on these developments. Let us help you. We specialize in ensuring that our clients remain compliant with the government’s ever-changing regulations. Contact us today to arrange a free initial consultation or click the button below to get your White Collar Exemption Rules Toolkit today.

Download the Beimdiek FLSA White Collar Exemption Rules Toolkit today!

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