A primer for staffing companies on the new overtime regulations from Citrin Cooperman and Becker LLC.

1. A PRIMER FOR STAFFING COMPANIES
NAVIGATING THE PERILS
OF THE NEW OVERTIME
REGULATIONS:

2. PANELISTS:
Marty Borosko, Managing Member
Becker LLC
Martin Borosko is a Managing Member of Becker LLC, a mid-market law firm, and co-chair of the firm’s staffing group. Martin has 20 years of
experience handling complex corporate structuring matters and commercial disputes in healthcare and staffing. He counsels companies on corporate
matters impacting strategy and growth. Martin has received several honors including “40 Under 40” by the New Jersey Law Journal and named a New
Jersey Super Lawyer 2009-2012. He received his Bachelor of Arts degree from the College of New Jersey and Juris Doctorate from the Rutgers
School of Law – Newark.
Brian E. Curtis, Esq.
Becker LLC
Brian E. Curtis, Esq. is a recognized authority in the areas of employment law and litigation, human resources management, and contract law, and
serves as Counsel to Becker LLC. Curtis is a highly skilled, action-oriented lawyer and business consultant with extensive experience in executive-level
and management employment matters, with an emphasis on the staffing, hospitality, and healthcare industries.
Brian J. Hoffman, Partner
Citrin Cooperman
B.J. Hoffman is a tax partner with over 23 years of experience in the areas of audit, tax, and litigation support. He serves clients in a wide range of
industries, including closely held entities in staffing, as well as law firms. As a tax specialist and CFE, B.J. counsels clients with a range of strategies,
including detailed year-end multi-jurisdictional planning, which helps clients reduce income tax exposure. He also devotes a substantial amount of time
to the area of trust and estate income taxation. B.J.’s practice often goes beyond tax and audit work to include looking for fraud, waste, and abuse
in order to improve his clients’ profitability.. B.J. received his B.S. in Accounting, Magna Cum Laude, from Lehigh University’s School of Business and
Economics.

3. ELECTION UPDATE AND POTENTIAL IMPACT
ON OVERTIME REGULATIONS

4. THE BASICS
 Department of Labor’s effective date (12-1)
 Most salaried employees earning less than $47,446 annually ($913/week) need to be paid
time and a half for 40 hours per week, up from $23,660 annually ($455/week), a major
expansion of eligibility
 Those earning more than these amounts are generally exempt
 Thresholds to be revised every 3 years in the future
 Whether/how much employee bonuses and commissions can count towards these salary
limits
 Highly Compensated Employee exemption raised from $100,000 to $134,004 in annual
compensation, also
 Co-employment issue for staffing companies – who is responsible – staffing company or
client (probably the staffing co)

5. COMPLIANCE
 Need to evaluate workforce makeup / census to determine possible employee
eligibility
 Convert annual salaries into hourly pay rates to determine exposure for non-exempts
 Evaluation of adequacy of existing timekeeping systems – some companies do not
track salaried employees’ hours – must change
 Evaluation of “off the time clock” demands upon employees (travel between offices,
requirement to respond to overnight emails, etc. can drive up compensable hours) –
May need to adopt new policies and procedures to limit such exposure
 Consider conducting a self-audit of payroll policies

6. STRATEGIC RESPONSES
 Possibility of increasing employee wages above thresholds of OT – watch out for wage
ripple effect, however
 Close monitoring of hours worked, adoption of OT authorization policies
 Juggling of employee responsibilities, so that additional hours taken on by those with
compensation above OT threshold
 Increasing employee headcount/reducing individual employee hours
 Or, just pay the OT
 Adoption of class action waivers during onboarding
 Modifying client contracts so that the staffing company’s clients must reimburse for OT
of contract workers

7. QUESTIONS AND
ANSWERS