1. FLSA Regulation Update Seminar
May 10, 2016
Key Objective
Employersmustadhere toanyfederal laborlaw,unlessstate lawsare more generoustothe employee.
Exempt vs. Non-exempt employees
All employeesthatare non-exemptmustbe paidforany hours worked,regardlessif authorizedoron
physical companyproperty.Non-exemptemployeesmustalsobe paidovertime,if workedover40
hoursduringany givenweek.Youcanbe a non-exemptemployeeandstill getpaidsalary,if the hours
youworked,including anyovertime pay,are more thanminimumwage.Foranemployee tobe exempt,
followthe guidelinesbelow.Alwaysfollow the mostgeneroustothe employee’slaws!
Exemption Test (must meet all criteria):
 Salarymust be at least$455/week
 Fixedsalary
 Jobdutiesare establishedandmeteachweek
DOL Proposed Salary Income (not official):
 Admin,Executive,andProfessional :970/week
 HighlyCompensatedEmployees:$132,000/year
Contract vs. Employee Labor
Followthe IRSCommonLaw Test.Nochanges,buttheyare keepingaclosereye oncontract labor
employeetomake sure theyare correctlyclassified.
Rest Breaks
Anyrest breaks,thatare notclearlydefinedbyemployer,aslongas20 minutesorshorter,mustbe
paid.
Anyeatingbreaksthatare interruptedbyemployerorwhere employeesare askedtodosome workare
to be paidin full,regardlessif voluntarybyemployee.
Takeaways
 Make sure employeesare properlyclassified(non-exempt,exempt&employee,contractlabor)
 Continue tomonitorupdatingFLSA exemptionregulations
 Pay all non-exemptemployeesforall hoursworked(regardlessof authorization)
 Have an accurate and reliable time keepingsystem