The document discusses upcoming changes to overtime regulations under the Fair Labor Standards Act (FLSA) that will take effect in December 2016. It explains that the salary threshold for exempt "white collar" employees will be raised to $47,476 per year, and will increase automatically every three years. This means some employees currently classified as exempt, like Jackie who earns $45,000, may become eligible for overtime pay. The document provides advice for managers like Henry on how to assess the financial impact and prepare for the changes to ensure compliance. It also provides information on resources from a consulting firm that can help companies with classification changes, policy development, and other HR projects related to the new overtime rules.

1. Get Ready for 2016
Overtime
Regulations
What you need to know… even when you have
only 1 employee!

2. What is “FLSA”?

3. What is “FLSA”?
Fair Labor Standards Act
Legislation regulating wages
and hours

4. How does it impact
overtime pay?
•FLSA defines employees that are:
•“Exempt” from overtime
•“Non-Exempt” from overtime

5. How does it impact
overtime pay?
•FLSA defines employees that are:
•“Exempt” from overtime
•“Non-Exempt” from overtime
Those GET PAID OVERTIME

6. Who Is Exempt?
• E-A-P are the most common “White collar”
exemptions
• Administrative
• Professional
• Executive

7. Who Is Exempt?
• Must pass the exemption test in 3 parts:
• Get paid on salary basis
AND
• Meet the requirement test (E-A-P)
AND
• Meet a minimum salary test

8. Who Is Exempt?
• Must pass the exemption test in 3 parts:
• Get paid on salary basis
AND
• Meet the requirement test (E-A-P)
AND
• Meet a minimum salary test

9. Who is Non-Exempt?
• If an employee doesn’t meet the exemption test,
this employee is non-exempt
• Non-Exempt is the default
• 59% of workforce is non-exempt (2015)

10. Meet
Jackie
• Assistant Manager
• Jackie’s job:
• Manages 5 employees
• Sets work hours
• Hires new employees
• In charge of discipline
• Covers for her boss
• Sometimes works weekends
• Answers emails after hours

11. Meet
Jackie
• Assistant Manager
• Jackie’s job:
• Manages 5 employees
• Sets work hours
• Hires new employees
• In charge of discipline
• Covers for her boss
• Sometimes works weekends
• Answers emails after hours
• Jackie’s salary: $45,000
• Jackie is currently exempt

12. Meet
Jackie
• Assistant Manager
• Jackie’s job:
• Manages 5 employees
• Sets work hours
• Hires new employees
• In charge of discipline
• Covers for her boss
• Sometimes works weekends
• Answers emails after hours
• Jackie’s salary: $45,000
• Jackie is currently exempt
This is the type of employee most
impacted by the change in “white
collar” exemption

13. White Collar Exemption
Final Rule by the Department Of Labor rule
• Exemption salary raised to $47,476/year
($913/week)
What is changing?

14. White Collar Exemption
Final Rule by the Department Of Labor rule
• Exemption salary raised to $47,476/year
($913/week)
• Automatic increase every 3 years
What is changing?

15. White Collar Exemption
Final Rule by the Department Of Labor rule
• Exemption salary raised to $47,476/year
($913/week)
• Automatic increase every 3 years
• 10% salary from bonus and commission
• Effective December 1st 2016
What is changing?

16. What does this mean for Jackie?
Uncertainty
Jackie’s salary ($45,000) < Exemption level ($50,440)
• Will she remain “management”?
• Will she earn overtime pay?
• Will her income be impacted?
?

17. What does this mean for Jackie?
Uncertainty
Jackie’s salary ($45,000) < Exemption level ($50,440)
• Will she remain “management”?
• Will she earn overtime pay?
• Will her income be impacted?
It depends on what her
employer decides to do.
?

18. Meet Henry
• Jackie’s Manager
• He needs to figure out
how to prepare for the
new overtime regulations

19. If you are like Henry
• You need to understand the financial impact to
your business
• You need to assess your areas of risk
• You want to be prepared for the change
• You want to do the right thing for your business
• You want to be fair to your employees

20. Help is available
Click here to connect to my free on-
demand webinar (with audio!)
In this FREE webinar, you will get:
• A step-by-step action plan to handle
your classification changes
• Scenarios and options to consider
• Access to additional resources

21. Gere Consulting
• FLSA projects
• Policy
development
• Job
descriptions
• Employee
relations
• Management
skills
HR projects Training Support Solo HR
• When your HR
resigns
• Working on
special projects
How We Help Employers
www.GereConsulting.com/product/OTready

22. Thank you!
www.gereconsulting.com/freeconsult
“Anne-Lise is able to help with the heavy lifting
when it comes to designing and implementing big
picture HR projects that would otherwise get lost.”
-Tiffany Speas, Peninsula Agency of Aging
“Many of the most daunting issues I’ve faced as
owner of a quickly growing business are related to
human resources. Anne-Lise has provided me
prompt, actionable advice and information on
several employee issues. I look forward to our
continued relationship to support my business.”
Dave Hunt – President, Crossrope LLC
Anne-Lise Gere, SPHR