2016 Update on Complying with the New Wage and Hour Regulations

The compliance part is simple - if an employee earns less than $913 a week, they are non-exempt.

That is all you have to know - right?

Not so fast - a few questions need to be answered first.

• Have you thought about the cost of compliance?
• Have you determined what the total earnings of an employee who will now be eligible for overtime will be?
• Will these people now end up making more than their boss?
• Where will you find the money to cover the additional cost?
• Will you have to cut the earnings of employees who move from exempt to non-exempt?
• Will you have to lay off some people when the labor cost gets too high?
• Are there other options available for money savings?
• Will the benefits for the employees changed to non-exempt remain the same?
• What will the affect be on employee morale?

The Wage and Hour Division of the Department of Labor issued Proposed Regulations in July of last year. The long awaited Final regulations under the Fair Labor Standards Act were released on May 18, 2016. The new salary level test raises the minimum salary requirement to qualify as an exempt employee from $455 a week to $913 a week.

Before implementing any changes, you have to know the implications of your decisions. And the new regulations have caused more questions than answers. There will be an increased cost to do business. This will be the case in most businesses. Making changes to employee pay may also cause many employee relations issues to both the employees directly affected by the change and to other employees who are not.

Some of the questions that have to be asked are:

• What are the ramifications of changing previously exempt employees to non-exempt?
• Can we still give bonuses to non- exempt employees?
• Are there other programs that can limit the amount of overtime payments?
• How do we handle the current exempt employees who are paid just over the minimum threshold?
• Will changes to the pay of some employee cause compression issues?
• Can we have exempt and non-exempt positions with the same job title and salary level?

As you can seem the questions are numerous. This webinar will answer all of the above questions and review the changes in the salary level test and the implications of changing traditionally exempt employees to non-exempt. We have until December 1, 2016 to be in compliance with the new regulations. It is a good time to learn how compliance will affect your business.

The New Wage and Hour Regulations will have a far reaching effect on your business and operations. , After completing this webinar, participants will have a stronger understanding of:

• The necessary components to maintain compliance with the new Fair Labor Standards Act regulations
• Conducting an analysis of the cost of complying with the new regulations
• Potential ways to reduce overtime liability using such pay programs as the 7(i) exemption and a concept known as Fixed Pay for Fluctuating Work Week.
• The importance of examining all of the unintended consequences of the new regulations on your employee relations before implementing any changes.
• Developing an individualized communications plan to the employees affected by the change
• Have these changes go as smoothly as possible

The Learning Objectives of this Session are:

• A review of the Three Tests that must be Met to Qualify as an Exempt Position
• How the new Salary Level Test will impact Your Business?
• Understanding the Financial Impact of Converting Salaried Employees to Hourly
• Ways to Limit Labor Costs Increases
• Handling Bonuses Under the New Guidelines
• Employee Relations Implications
• Potential Implications to Your Business Model.
• The Importance of Proper Communications to Affected Employees.

This webcast will be of a valuable assistance to the below audience.

• CEO
• CFO
• Human Resources Executives
• Payroll and accounting managers
• Payroll processing professionals
• Employers and Business owners
• Human Resources Specialists and managers