Un-packaging the new FLSA Overtime Rules
- Start Date:
- Wednesday, 9 August, 2017
- End Date:
- Wednesday, 9 August, 2017 2:30pm
- Business Practice
Key Take Away The proposed FLSA overtime rule changes have a significant potential impact for organizations, managers and individual workers. With short timelines expected for implementation, it's important to have a clear strategic plan to evaluate how their companies will be impacted and take proactive steps now to mitigate that risk. This webinar will help you navigate these significant changes and prepare your organization for meeting its obligations before the deadline of December 1, 2016.Overview The deadline for meeting the New Fair Labor Standards Act (FLSA) regulations is on the horizon and the outcome will dramatically impact organizations - operating budgets, staffing levels and employee morale.
Without a doubt Human Resources professionals are feeling overwhelmed, uneasy and unprepared.The Fair Labor Standards Act (FLSA) governs minimum wage and overtime laws, as well as other labor standards as they pertain to both full-time and part-time employees, in both the public and private sectors.On May 18, 2016, the DOL released the FLSA status final rule updating the overtime regulations which automatically extends overtime to over 4 million workers.
The rules raise the salary threshold and a change in the FLSA exempt classification of employees eligible for overtime. The Final Rule focuses primarily on updating the salary and compensation levels needed for Executive, Administrative and Professional workers to be exempt. Specifically, the Final Rule:1. Sets the standard salary level at the 40th percentile of earnings of full-time salaried workers in the lowest-wage Census Region, currently the South ($913 per week; $47,476 annually for a full-year worker);2.
Sets the total annual compensation requirement for highly compensated employees (HCE) subject to a minimal duties test to the annual equivalent of the 90th percentile of full-time salaried workers nationally ($134,004); and3. Establishes a mechanism for automatically updating the salary and compensation levels every three years to maintain the levels at the above percentiles and to ensure that they continue to provide useful and effective tests for exemption.Additionally, the Final Rule amends the federal labor laws salary basis test to allow employers to use nondiscretionary bonuses and incentive payments (including commissions) to satisfy up to 10 percent of the new standard salary level.Why Should You Attend With employee reclassification, some employees will now be eligible for federal overtime laws.
Employers may also choose to raise the salary of employees below the threshold, rather than pay them overtime. The U.S. Department of Labor "estimates the average annualized direct employer costs will total between $239.6 and $255.3 million per year, depending on the updating methodology." They anticipate costs to fall into the following buckets: regulatory familiarization, adjustment and managerial. Additionally, annualized higher earnings are estimated to cost employers between $1.18 and $1.27 billion.Almost immediately, employers will feel the financial pain of federal regulations increasing salaries for exempt employees, as well as making overtime payments to employees newly classified as non-exempt.
There will likely be a need to hire additional staff to combat resource and financial constraints.While employers are rightfully concerned about how these new rules will impact those affected employees, it's equally important to consider the negative impact on employee morale by those unaffected. Organizationally, there's plenty to do before the FLSA regulations deadline. From changes to the timekeeping system to track hours to updating job descriptions to clearly identify exempt or non-exempt jobs, employers will need to be timely and consistent in how they approach the challenge ahead.Areas Covered In This Webinar· Overview of the key provisions of the final rule and related timelines· Understanding the impact by industry, including the pending rule on the use of electronic devices by overtime-protected employees· Why this matters to every employer?· How to conduct a detailed FLSA overtime audit of potential positions impacted· Getting ahead of the potential wage compression issues· Developing scenarios for modeling costs· The impact of the final rule on old job descriptions· Developing a management plan that addresses both regulatory compliance and organizational strategy· Developing a communications plan to manage employee morale through the transition· Best practices to consider to address the automatic increase provision Learning Objectives· Understand the changes· Understand the impact· Understanding possible options for coming into compliance Who Will Benefit· Corporate Stakeholders · Risk Management Professionals· Compliance Programs · HR Teams · Recruiting Teams For more detail please click on this below link: http://bit.ly/2sic9TO Email: email@example.comToll Free: +1- 844-414-1400Tel: +1-516-900-5509 Fax: +1-516-300-1584
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