Changes To The FLSA White Collar Exemption: Are You Ready? A Roundtable Discussion Sponsored by The Greenville Chamber of Commerce September 22, 2016 Moderator Julie Godshall Brown Godshall Professional Recruiting and Staffing Legal Overview Tom Bright Ogletree Deakins Panel Members Pam Nalley Rachael Putnam Tom Dumit Gayle Willet Leslie Hayes Belk Goodwill Upstate Café Enterprises Cascades Verdae The Hayes Approach
Changes To The FLSA White Collar Exemption: Are You Ready? Legal Overview Tom Bright Ogletree Deakins 300 North Main Street, Suite 500 Greenville, SC 29601 Telephone: 864-240-8352
The Guaranteed Salary Changes Changes To The FLSA White Collar Exemption: Are You Ready? The Guaranteed Salary Changes From $455/week ($23,660 annually) to $913/week ($47,476 annually) Automatic updates to guaranteed salary level every 3 years (first in January, 2020) Effective December 1, 2016
Applies to the following: Changes To The FLSA White Collar Exemption: Are You Ready? Applies to the following: Executive Administrative Professional (learned and creative) Computer Professional
The Guaranteed Salary Change For Highly Compensated Employees Changes To The FLSA White Collar Exemption: Are You Ready? The Guaranteed Salary Change For Highly Compensated Employees From $100,000 annually to $134,004 annually Just have to meet one of the requirements of any of the white collar exemptions
Changes To The FLSA White Collar Exemption: Are You Ready? Bonus Provision Nondiscretionary bonuses, incentive payments and commissions can constitute up to 10% of the guaranteed salary Must pay 90% of guaranteed salary each week ($821.70/week or $42,728.40 annually) Bonuses must be paid out at least quarterly and make up for the 10% If bonus for quarter does not meet the 10%, employers can make a one time shortfall payment to bring the weekly salary (plus bonus) to $913/week
Bonus Provision for Highly Compensated Employees Changes To The FLSA White Collar Exemption: Are You Ready? Bonus Provision for Highly Compensated Employees Nondiscretionary bonus payments can be used to satisfy the annual salary requirement. Still must receive $913/week in guaranteed salary Additional $86,528 annually in nondiscretionary bonuses can be used to elevate someone to the highly compensated employee level
Action Plans to Consider Changes To The FLSA White Collar Exemption: Are You Ready? Action Plans to Consider Review all currently exempt positions to ensure they meet the duties test Convert those who do not meet salary test to nonexempt eligible for overtime Hourly compensation Salaried nonexempt with overtime premium Raise salary levels Reorganize workloads or work schedules to ensure no overtime Hire more people to spread the workload
Changes To The FLSA White Collar Exemption: Are You Ready? A Roundtable Discussion Panel Discussion Moderator Julie Godshall Brown Godshall Professional Recruiting and Staffing Panel Members Pam Nalley Rachael Putnam Tom Dumit Gayle Willet Leslie Hayes Belk Goodwill Upstate Café Enterprises Cascades Verdae The Hayes Approach