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 7