As all HR professionals and employment lawyers know (even those currently living under rocks), the Department of Labor’s final overtime rule is scheduled to go into effect on December 1, 2016 – less than two weeks from now. The DOL published the rule back on May 18, 2016 providing employers with nearly 200 days to come into compliance. Many have planned accordingly and are ready to go; others are finally focusing on this issue as the deadline nears. At the same time, questions continue to arise over the rule’s fate. In this post, we discuss the current state of play along with some compliance tips for employers.
The Department of Labor’s new overtime rules take effect December 1, 2016, and employers across the country are carefully reviewing and modifying their compensation and payroll practices in anticipation. As part of this preparation, employers must consider whether and how any changes to their compensation structures will affect their employee benefit plans. This post examines some of the employee benefits issues that employers should be considering as the December 1 deadline approaches.
The trend toward local regulation of employment laws continues in California with three new local wage and hour enactments.
On June 7, 2016, San Diego voters passed a ballot initiative containing two provisions for hourly workers. First, San Diego’s new minimum wage will be $10.50 per hour once the ballot results are confirmed, which is expected to be in mid-July. Second, San Diego will have its own paid sick leave policy of five days (40 hours) – which is in excess of the state law that allows employers to limit use of accrued paid sick leave to three days (24 hours).
Like the state law, San Diego’s paid sick leave will accrue at one hour for every 30 hours worked and cannot be used until after 90 days of employment. Also like the state law, San Diego’s sick leave initiative allows accrued leave to be front loaded or accrued, and it must be carried over year to year.
Please join us on June 21st at 2:00 pm ET as we cover the new white-collar overtime rule. This one-hour webinar will offer employers more than just a summary of the rule. It will also offer unique insights on the rule’s impact, help employers navigate the complex issues that may arise when revisiting their classification decisions, and suggest best practices for making and implementing these decisions, including communicating them to the workforce prior to the December 1st effective date.
If you have any question you would like us to address, please email them to me at firstname.lastname@example.org in advance of the webinar. You can find our previous coverage on the blog on this issue here (and check back regularly for additional updates).
We hope you can join us! Register here.
Mintz Levin is an approved CLE provider. This webinar is accredited in the following states: California (1.0 general credit) and New York (1.0 general credit). Mintz Levin is also recognized by SHRM to offer Professional Development Credits (PDCs) for the SHRM-CPSM or SHRM-SCPSM. This webinar is valid for 1.0 PDC for the SHRM-CPSM or SHRM-SCPSM.
One of the few “wins” for employers under the DOL’s new overtime rule was that employers are now allowed to apply “nondiscretionary incentive payments” to meet up to 10 percent of the new salary threshold. This change could prove very important for employers who pay employees on a commission basis or who use other incentive-based compensation.
But what qualifies as a nondiscretionary incentive payment? What options do employers have in changing their compensation plans to ensure compliance with the new rule? And what could be the unintended consequences of those changes? This post looks at this new rule and attempts to answer some of those questions.
As we reported earlier, the DOL has now released its final overtime rule. Two of the biggest takeaways are that the new rule (1) greatly increases the minimum salary threshold of the so-called “white collar” exemptions (at least $913 per week, equaling $47,476 annually); and (2) made no changes to the exemptions’ separate job duties’ tests. The impact of the new rule is expected to be far-reaching – affecting more than 4.2 million workers, with a predicted $12 billion boost to wages over the next 10 years. Below we address the new rule’s impact on California employers, who must still comply with the state’s wage and hour laws when making compliance decisions. Continue Reading The DOL’s New Overtime Rule: Considerations for California Employers
Over the course of this and next week, we will discuss the final overtime rule’s impact and address related workplace issues on which employers should focus in advance of its December 1st implementation date. Today we focus on the rule’s impact on non-profits and educational institutions.
On Wednesday of this week, the Department of Labor announced its Final Rule, which is aimed at expanding overtime eligibility for millions of American workers. At its core, the final version of the rule doubled the minimum salary employers must pay “white collar” workers to maintain their exempt status. See our post here for a summary of the new regulations.
But what does this mean for non-profits, including educational institutions, which may be harder hit by these changes than private sector employers? In short, generally the same thing it means for any other employer.
The wait is over! This morning, the Department of Labor announced its Final Rule, which is aimed at expanding overtime eligibility for millions of American workers. At its core, the final version of the rule doubled the minimum salary employers must pay “white collar” workers to maintain their exempt status. The final rule did not, however, make any change to the job duties test.
Over the course of this and next week, we will discuss the rule’s impact and address related workplace issues on which employers should focus in advance of the rule’s December 1st implementation date. We will also host a webinar. For now, we’ll briefly summarize the key provisions from the rule.
My colleague David Barmak was featured in the NPR program, Marketplace in which he examines the negative implications of changing the white-collar overtime rules so that more white-collar workers are eligible for overtime. The program provides an overview of the rule and its impact on the wage gap and service industry.
California and New York have each passed laws that will gradually raise their state’s minimum wage rate to $15 per hour. This is a stunning development coming just four years after a small group of New York fast food workers initiated the call for the increase. The new laws will impact millions of Americans and put pressure on other jurisdictions and business to make similar increases in other parts of the country. We briefly break down the new laws below.