What You Need to Know for FLSA Changes

The Department of Labor (DOL) is issuing imminent adjustments to the Fair Labor Standard Act (FLSA) on December 1, leaving many businesses – large and small – with questions regarding overtime rules and salary changes.

The FLSA mandates minimum wage, overtime pay eligibility and record-keeping for virtually all full-time and part-time employees. Under FLSA, employers owe non-exempt employees at least the minimum wage plus overtime pay for working over 40 hours a week. By contrast, exempt employees are not entitled to minimum wage or overtime pay, but employees must satisfy multiple tests to be considered exempt.

Here's what the changes mean: Salary Thresholds Increase

The annual salary threshold for employees exempt from overtime pay under FLSA is raised from $23,660 (or $455 per week) to $47,476 (or $913 per week).This means that any employee earning under that amount becomes reclassified as non-exempt. According to the Department of Labor, approximately 4.2 million workers are to experience an increase in wage.

If the employee earns over the threshold amount, to be exempt, they must still meet the duties test set out in the Department of Labor's regulations.

Please let our team at MBL Benefits know if you have any questions or we can assist you to be prepared for the impending December 1 changes.