12/1/16 is Coming Soon...The Exempt Salary Level is Increasing on This Day
As a reminder..
Effective December 1, 2016, exempt employees will need to be compensated at $47,476 annually which is equal to $913 per week (in addition to meeting the FLSA's "Exempt Duties" Test). This 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).
How is this expected to affect employers?
* Employers need to review the salary of each of their exempt employees and decide whether those employees will receive an increase to $47,476 or be reclassified to a non-exempt status.
NOTE: Non-exempt employees need to earn at least minimum wage in the State in which they work and be informed of the organization's overtime policy(ies).
* Employers need to discuss this change with the employee(s) and how this may affect them (bonus eligibility, changes in vacation/PTO time, etc.).
NOTE: If an employee's status is being changed to non-exempt, the employee needs to be informed of his/her eligibility for overtime compensation.
Any questions, please contact Lauren Brenner at 617-614-1271 or firstname.lastname@example.org.