Hot HR Topics in 2016: Proposed Changes to the FLSA
We are half-way through our 5 hot HR Topics in 2016. So far we have covered Health Care Reform, Marijuana in the Workplace, and now “Proposed Changes to the Fair Labor Standards Act”. Stay tuned for our next topic “Minimum Wage Increases!”
Proposed Changes to the Fair Labor Standards Act:
The proposed changes to the white collar exemptions of the Fair Labor Standards Act (FLSA) are expected to be finalized sometime in 2016. If the final rules mirror the proposed rules, the salary level of $50,440 will more than double the salary threshold for workers otherwise eligible for a white collar exemption from minimum wage and overtime requirements under the FLSA. Beyond the initial large jump, the rules also propose an automatic annual adjustment to both the white collar salary level and the highly compensated employee compensation rate. These would be tied either to a cost of living index or to a set percentile of earnings across all salaried workers.
The Department of Labor (DOL) is required to review the quarter of a million comments made in response to the proposed rules. It remains to be seen whether the DOL will respond to the comments or make changes to the proposed rules in response to them. The timing is also an unknown at this point. The effective date could be early summer 2016, late 2016, or even sometime in 2017.