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New Overtime Regulations

Joe Shelton, Partner with Fisher Phillips, a national employment law firm and Universal Unilink Business Solutions Provider, was back at this year’s conference with detailed information on pending changes to overtime regulations that are expected to have major impact on all businesses.

Effective December 1, 2016, new Department of Labor (DOL) regulations will double the current threshold for exemption from overtime pay from $455 per week ($23,660 per year) to $913 per week ($47,476). Under the new rules, salary levels will automatically adjust every three years (‘the escalator provision”). The new regulations have no exceptions for small companies.

Joe’s presentation discussed the “white collar” exemptions that companies should review as well as suggestions for staying within the law. Specific questions from the audience revealed the need to carefully examine every exempt position to be sure that job duties meet the exempt definitions in addition to ensuring compliance with the new and increased salary requirements. One critically important reminder is that each pay period must stand on its own; having total earnings that ultimately meet the threshold on an annual basis is not sufficient.

Joe also spent time addressing potential issues regarding a very specific job category in our industry – route drivers/route salespersons. Members who treat such employees as exempt from overtime must be careful and it is recommended that they seek further guidance. When discussing this position and the related issues, Joe cautioned Members that the “outside sales” exemption might not apply depending on the particular facts. However, Joe discussed another exemption (the “motor carrier exemption”) that might be applicable even if the outside sales exemption was not available.

Pending changes can seriously impact the bottom line. So this is a presentation that every Member needs to see. The replay is available in the Video Library on the Member website.

Please remember – as a Member of Universal Unlink you are entitled to 30 minutes of complimentary telephone advice from Joe. If you would like to discuss the FLSA or other legal compliance matters under this complimentary program, contact Stacey McReynolds, 404 240-4280 or smcreynolds@fisherphillips.com. You can also request the white papers mentioned in the presentation from Stacey as well as a HR Checklist.

Note: Twenty one states have filed an action to delay the pending changes. In late September, the House voted 246 – 177 to delay by six months implementation, but, at press time, the regulations are scheduled to implement on December 1, 2016.

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