Ditchmen • NUCA of Florida Ditchmen • May 2016 | Page 7
Overtime Wage Law
Changes on the Horizon
by Michael Spellman
Over the past several months,
you have probably heard the
intention of the United States
Department of Labor (DOL) to
increase the salary threshold
an employee must earn to
be classified as exempt from
overtime under the Fair Labor
Standards Act (FLSA). This has
been a priority of the Obama
Administration, which plans to
implement the change through
amendments to applicable DOL
rules.
Initially, the DOL proposed an
overtime salary threshold of
just over $50,000. Recently,
however, news has circulated
that the DOL may make a minor
reduction and set the minimum
salary threshold at $47,000.
Should this become a final rule,
this means that in order to be
exempt from overtime (which for
most employers is any time over
40 hours in a one-week period),
an employee must be paid at
least$47,000, regardless of their
job duties.
Much debate has surrounded
when the DOL will issue this
Final Rule. Speculation has
ranged from an issuance in
Mid-May (to avoid review by
the next administration in the
White House) to early July (so
the new salary can go into effect
on Labor Day). It’s anyone’s
guess, but, to be sure, this is not
a question of “if;” it is a question
of “when.”
rule based upon the $47,000
overtime salary threshold.
As can be expected, this will
dramatically change the number
of employees who will now be
considered eligible for overtime.
According to the DOL, the
new rule will extend coverage
to nearly 5 million additional
people, although other experts
studying the issue believe that
at least 13.5 million employees
will be impacted. Lawyers
representing employees will
predictably attempt to exploit
the new rule by filing a host of
overtime lawsuits.
3. Consider restructuring job
functions of those currently
exempt who will no longer be
exempt under the new rule.
This new DOL rule is perhaps
the most impactful change to
the employment law landscape
seen in many years. Employers
should take several steps
immediately to ensure they are
in compliance with this new rule,
including:
2. Review the job descriptions of
all employees, but particularly
those who may be impacted by
this new threshold.
If you have questions or
concerns about this significant
change, don't hesitate to consult
an employment law attorney
who can assist you through
the process to make sure your
company is compliant.
Michael Spellman is a
partner with the firm,
Sniffen & Spellman, P.A..
He may contacted by
phone 850.205.1996 or
[email protected]
• • •
1. Pull payroll records to
determine which employees
may be covered by the new
MAY 2016 • DITCHMEN
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