Back in May, I wrote about the newly issued Department of Labor Regulations regarding increased salary thresholds for exempt employees and overtime. In September 2016, Attorney Generals from 21 states, including Michigan, filed suit in the Eastern District of Texas against the United States Department of Labor to block the Fair Labor Standards Act regulations as an overreach of executive authority.
While the suit makes its way through the litigation process, the rules are set to go in effect on December 1, 2016 and employers need to prepare for its impact. While I previously wrote about the threshold increases, the likely result of these regulations will be that more employees will be reverted to hourly, and therefore careful watch on hours worked over forty. These are some common traps to watch out for:
These are just a few traps to look out for, and the Department of Labor regulations provide dozens more examples. If you have a question on how to classify your employees, or if you have fallen into one of the traps, contact me to discuss how we may be able to help.
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