On December 1st, 2016, the wage threshold for salaried employees will change. Employees that were formerly considered salaries may now be considered hourly. What do you need to know to get ready for this significant change?

1. How will the FLSA
Changes Affect You?

2. You may not have heard but the
FLSA is changing the rules effective
December 1st 2016…
Such fun!

3. What do you mean you
don’t know what the
rules are to begin with?

4. For a full list
go here!

5. So what’s the change?
Why don’t you take a seat…

6. There are a few, but the one we
need you to focus on is the new
wage threshold.

7. You may currently have a number
of employees who are exempt
(salaried) for a variety of reasons…
however once the new rule goes
into effect any employee who earns
less than $47,476 annually, or $913
per week, will be considered non-
exempt (hourly) regardless of other
factors!

8. Think of it this way…
One employee
working 50 hours a
week who becomes a
non-exempt
employee will see a
pay increase of
37.5%
That’s (40 hours + (10 hours x 1.5 [which is the overtime rate] = 15) = 55 hours

9. If that person was earning
$45,000…
A 37.5% increase
over the course of a
year will cost you
$16,875

10. Now don’t overreact!

11. Go to your happy place…

12. The 1st thing you need to do is determine how many of
your employees will be effected.

13. Then find out how far below $47,476
they are as well as how much
overtime they usually work.

14. THINK strategically…

15. It may be
better to
consider a
raise rather
than
overtime…

16. Just remember you have to be consistent
within job categories…

17. The 2nd thing you will need to do is make
sure you are set up to track time…

18. You will need to
account for all
time worked by
allof your non-
exempt
employees.

19. Without making people feel like they just got dropped
here

20. And, finally how will you
communicate these changes to your
team?

21. We know you can handle this change…

22. But if you feel like
you could use
some assistance…

23. We’re here
to help

24. Because we
don’t ever want
you to run afoul
of the DOL for
something like
this

25. If the
paperwork
is piling
up…

26. Shoot us an e-mail at
info@hr-haven.com!

27. We’ll review each of
your position
descriptions to
determine whether
you have each
position properly
classified under FLSA
(a really good idea,
even before the
regulation changes).

28. Create a current market data report
for each position.

29. Examine your timekeeping
practices, because hourly
employees have to track their time
to ensure they’re compliant.
(and help you fix them if you’re not)

30. Help you create safeguards to limit
your legal exposure
(i.e. strategies to keep your overtime in check).

31. And help you create a
communication plan to introduce
the changes

32. You don’t
have to go it
alone…

33. www.hr-haven.com
913.940.5391
Send your questions to: info@hr-haven.com!