ARE THE FAIR LABOR STANDARDS
ACT CHANGES STILL HAPPENING?
December 1, 2016, the effective date of the changes to the Fair Labor Standards Act (FLSA) is fast approaching.
We’ve received many calls since the election from clients asking if they should proceed with the reclassification of their employees earning less than $47,476, the new minimum compensation for exemption. The answer is, “Yes!”
President-elect Trump does not take office until January 20, 2017. That’s well after the changes to the FLSA go into effect. Please do not put your organization at risk of Department of Labor fines and orders to pay back wages by waiting to see what is enacted by the new administration.
Based on recent comments by Vice-President Elect Pence, we are expecting that the FLSA changes will be an early consideration for the new administration. So, while there may be changes, it will most likely not be a complete roll back to the regulations in effect currently. Additionally, we have been promised heightened scrutiny by the Department of Labor immediately following the effective date of the new regulations.
Continue with your plans for implementation of the changes. We’re monitoring the comments coming from D.C. and will keep you updated. As soon as we have new information about plans to change the regulations, we will let you know.
Meanwhile, if you have any questions about the correct classification of any of your employees, please let us know immediately. You only have a short time to get all of your employees appropriately classified prior to the effective date of the changes.