If your business is covered by the Fair Labor Standards Act (FLSA), you may be required to give all of your salaried employees who perform executive, administrative or professional (EAP) duties a raise.
As of December 1, 2016, the new minimum wage for full-time salaried workers is $913 per week. Previously, the minimum wage was $455 per week.
December 1, 2016 is a Thursday, so this change will need to be made based on the payroll period that covers December 1, and it may be mid-pay period.
It may be time to require existing salaried employees to begin tracking their time or shift salaried employees to hourly with the prospect of paying overtime instead of the increased salary, and this is an analysis we can help you to best understand and then roll out to your employees.
EMPLOYER BEWARE! It's important to understand how the federal scheme interacts with your state labor law rules; for instance, California employers cannot take advantage of the highly compensated employee exemption, nor can they include non-discretionary bonuses or commissions in satisfying the Salary Basis Test.
If you need help identifying whether your business is covered by these rules and which of your employees are exempt under the new rules, contact us. That’s why we are here. There are significant costs if you make this analysis incorrectly, so let us help.
This article is a service of Satin Legal, Inc. We offer a complete spectrum of legal services for businesses and can help you make the wisest choices on how to deal with your business throughout life and in the event of your death. We also offer a Business Protection Strategy Session™, which includes a review of all the legal, and financial systems you need for your business. Call us today to schedule.