The Proposed Fair Labor Standards Act (FLSA) White Collar Exemptions Changes: What Every Company Should Know
In a 295-page report, the U.S. Department of Labor (DOL) has proposed amendments to the Fair Labor Standards Act's (FLSA) "white collar" exemption tests for executive, administrative, and professional employees. The highly anticipated proposed regulations have been delayed several times. But with the final regulations expected to go into effect sometime in 2016, it is crucial for employers to begin with their internal assessment and planning sooner than later.
If enacted, the new regulations will raise the minimum salary threshold required to qualify for exemption from the FLSA’s minimum wage and overtime requirements. There will be an increase to the current minimum salary requirement for the executive, administrative, professional, and computer employee exemptions from $455 per week ($23,660 per year) to $970 per week ($50,440 per year).
The rule will also increase the threshold for exemption as a “highly compensated employee” (“HCE”) from $100,000 to at least $122,148. Both the minimum salary level for exemption and the HCE threshold would be increased on an annual basis after the new regulations become effective.
Learn about the proposed changes before they become final. In this two-hour LIVE Webcast, The Knowledge Group has assembled a panel of key thought leaders, professionals, and practitioners to discuss the proposal, the changes, and how it could have a sweeping effect on all employers, large and small.
Key topics include:
- FLSA Wage and Hour Laws: Updates
- Employee and Overtime Exemptions
- FLSA’s Compensable Time Requirements for Non–Exempt Employees
- Update on DOL Enforcement Actions
- Wage and Overtime Calculations
- Non-compliance Regulatory Penalties
- Significant Litigation Issues
- Recent Trends and Issues
- Compliance and Best Practices
- Up-to-the-minute Regulatory Updates
Alexandra Koropey Piazza, Attorney
Berger & Montague,P.C.
Meghaan Madriz, Attorney
Haynes and Boone, LLP
Michael J. Mauro, Of Counsel
Smith, Buss & Jacobs, LLP
- Brief overview of exemptions
- Current Salary-Basis Requirements for White Collar Exemptions
- What stays the same?
- What changes?
- President Obama's March 2014 Directive to DOL to Revise Overtime Rules
- Exemption classifications most likely to be impacted.
- Industries and positions most likely to be impacted.
- What Can Employers Do Now (Before Final Regulations) to Mitigate Risks?
- Impact of removing overtime exemption in the unionized environment
- Employers will change exempt managers to hourly leads
- Do they becoming bargaining unit eligible?
- Does union have a right to demand dues?
- Do the benefit funds have a right to prospective funds contributions?
- Boon to unions and funds - major increase in cost to employer for mandatory health and welfare insurance contributions
- Loss of prestige in removal of overtime exemption
- Tech economy employees who don't want to punch a clock
- dealing with an employee wants to remain salaried
- flex economy: salaried employees, with a few exceptions, can't have pay docked or else the exemption is lost, by removing exemption they now are subject to docking for partial day absences for example
- remove flexibility in work scheduling
- loss of discretionary bonuses and fringe benefits that would otherwise be given to the employee - employer offsetting those benefits and bonuses to fund anticipated overtime
- Expansion of litigation
- Court dockets continued to be inundated with overtime suits, the change will spark even more litigation
- Dockets are filled with unpaid overtime not whether exemption applies as the proposed rule suggests
- Damages will be even higher because the overtime rate will be significantly higher
- Courts should consider mandatory mediation like in the SDNY for employment discrimination cases
- The compliance apparatus required to ensure every year that indexed salary basis increase is in effect is an onerous burden on any employer - inadequate diligence will make an employer a repeat defendant
- Settlement amounts will increase thereby making it harder to get approval from federal court when the parties agree to a lesser amount than owed in order to prevent employer from declaring bankruptcy leaving the plaintiffs and their lawyers with empty pockets.
- Impact on motor carrier exemption
- Interstate trucking/driving at all time high
- Interstate drivers are exempt
- If threshold increases does the exemption remain or will thousands of drivers be eligible for overtime - massive expansion in cost to trucking employers that will trickle down to increased costs
- Interstate trucking/driving at all time high
Who Should Attend:
- Employment and Labor Law Attorneys
- Labor Counsel
- HR and Benefits Personnel
- Payroll Managers
- In-House Counsel
- Top Level Management
- Private and Public Companies
- Other Related/Interested Professionals
Alexandra Koropey Piazza is an associate at Berger & Montague. Ms. Piazza focuses her practice on wage and hour class and collective actions arising under state and federal law. She is a graduate of the University of Pennsylvania and Villanova University School of Law. Ms. Piazza currently serves as Vice President of the National Employment Lawyers Association – Eastern Pennsylvania division.
Alexandra Koropey Piazza is an associate at Berger & Montague. Ms. Piazza focuses her practice on wage and hour class and …
Meghaan Madriz advises employers of all sizes on their employment-related matters and zealously defends them against employee claims in court, arbitration, and administrative proceedings. While Meghaan represents employers in a variety of employment-related matters, she has developed a primary focus on wage and hour issues. Meghaan has handled Department of Labor investigations, internal wage and hour audits, and multiple wage and hour lawsuits (including Fair Labor Standards Act collective actions). Meghaan frequently advises clients on wage and hour compliance issues regarding compensable time, regular rate calculations, employee classifications, and overtime compensation. Meghaan has obtained multiple victories in her wage and hour practice, including the decertification of a nationwide Fair Labor Standards Act collective action in an exempt misclassification case and summary judgment of off-the-clock claims.
In addition to her robust wage and hour practice, Meghaan regularly defends clients before the Equal Employment Opportunity Commission and in court for claims under Title VII, the Americans with Disabilities Act, and the Age Discrimination in Employment Act, among other federal employment statutes. Meghaan also represents companies in both the prosecution and defense of unfair competition claims, such as breach of non-compete and misappropriation of trade secret claims. Meghaan also advises and counsels employers on their employment and human resources matters, drafts employment, separation, and restrictive covenant agreements, provides due diligence for employment matters in corporate deals, and reviews employee handbooks and other workplace policies. With a keen awareness to developing employment law issues in today’s workplace, Meghaan strives to keep clients abreast of the law and to find ways to minimize liability.
Meghaan Madriz advises employers of all sizes on their employment-related matters and zealously defends them against employee claims in court, …
Michael Mauro has counseled and defended employers in claims under federal, state and local statutes, including Title VII, ERISA, and the Fair Labor Standards Act and also in employment tort cases. Michael has represented employers before a range of federal, state and local administrative agencies. He has represented clients in wage and hour cases that have presented challenging issues from applicability of exemptions to the procedural developments in collective and class action litigation. Michael has represented employers at trial and at the federal appellate level including winning a landmark decision in favor of employers before the United States Court of Appeals for the Second Circuit.
Michael also possesses vast experience in labor-management relations law in appearing before the before the National Labor Relations Board and by representing management at the bargaining table, at arbitration and in daily collective bargaining agreement counseling.
Michael Mauro has counseled and defended employers in claims under federal, state and local statutes, including Title VII, ERISA, and …
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About Berger & Montague,P.C.
Berger & Montague, P.C. is a full-spectrum class action and complex civil litigation firm, with nationally known attorneys highly sought after for their legal skills. The firm has been recognized by courts throughout the country for its ability and experience in handling major complex litigation, particularly in the fields of antitrust, securities, employment law, whistleblower cases, and consumer litigation. In numerous precedent-setting cases, the firm has played a principal or lead role.
About Haynes and Boone, LLP
Haynes and Boone, LLP is an international corporate law firm with offices in Texas, New York, California, Chicago, Denver, Washington, D.C., Mexico City and Shanghai, providing a full spectrum of legal services in technology, financial services, energy and private equity. With more than 575 attorneys, Haynes and Boone is ranked among the largest law firms in the nation by The National Law Journal. The firm was named the 2015 Best National Firm for Diversity in North America in the Americas Women in Business Law Awards.
About Smith, Buss & Jacobs, LLP
Smith Buss & Jacobs LLP provides legal services in the areas of Commercial Real Estate and Leasing, Cooperatives & Condominiums, Litigation, Business Law, Intellectual Property & Ecommerce and Privacy & Data Security Groups.
Smith, Buss & Jacobs, LLP offers its clients quality legal services in an efficient and professional manner. The firm’s AV rating in Martindale Hubbell is the highest possible rating for legal services and legal ethics. Smith, Buss & Jacobs, LLP represents a large and prestigious client base of developers, condominiums, cooperatives, corporations and high profile individuals. Our mission is to provide each client with exemplary service and special attention.