1. FRANK HARTY Direct Number: (515) 283-3170 | Facsimile: (515) 283-3108 | E-Mail: fharty@nyemaster.com 700 Walnut, Suite 1600 | Des Moines, IA 50309-3899 | (515) 283-3100 Attorneys at Law | Offices in Des Moines, Ames and Cedar Rapids FRANK HARTY put himself through college and law school by playing football and working. He received a B.B.A. with honors in Industrial Relations from the University of Iowa School of Business and graduated Order of the Coif from Drake University Law School where he was Editor in Chief of the Drake Law Review. Frank is a Fellow of the American College of Labor and Employment Lawyers. He is also recognized as a Leading Individual Labor and Employment Lawyer in Iowa by Chambers and Partners and is recognized by The Best Lawyers in America and Great Plains Super Lawyers. Frank is a fellow of the Iowa Academy of Trial Lawyers and the American Board of Trial Advocates. He has taught trial advocacy and employment law at the Drake University Law School. Frank is Past Chair of the Labor and Employment Law Section of the Iowa State Bar Association. T HE N EW FLSA R EGULATIONS : R EADY OR N OT www.nyemaster.comJuly 2016 ©2016 Nyemaster Goode, P.C.

2.  1938 Creature of the Great Depression  Overtime, Minimum Wage, Child Labor  “Suffer or Permit”… T HE FLSA: O VERVIEW www.nyemaster.comJuly 2016 ©2016 Nyemaster Goode, P.C.

3.  Executive  Administrative  Professional  Creative Professional  Computer Employee  Outside Sales E XEMPTIONS www.nyemaster.comJuly 2016 ©2016 Nyemaster Goode, P.C.

4.  Salary Basis  Duties Test  Salary Level… E XEMPTION T EST www.nyemaster.comDate ©2013 Nyemaster Goode, P.C. 3

5.  Predetermined Amount  No Reduction Based on Quality or Quantity  DOL Fact Sheet 17G S ALARY B ASIS T EST www.nyemaster.comJuly 2016 ©2016 Nyemaster Goode, P.C.

6.  Does not apply to repeated willful violations  Communicated “no-deduction” policy, reimburse when appropriate, exercise “good faith”  DOL model policy: http://www.dol.gov/whd/regs/compliance/overtime/ modelpolicypf.htm D EDUCTIONS : S AFE H ARBOR R ULE www.nyemaster.comJuly 2016 ©2016 Nyemaster Goode, P.C.

7. N O C HANGES TO S ALARY T EST www.nyemaster.comJuly 2016 ©2016 Nyemaster Goode, P.C.

8.  See DOL Fact Sheet 17A D UTIES T EST : N O C HANGES www.nyemaster.comJuly 2016 ©2016 Nyemaster Goode, P.C.

9.  No Inflation Adjustments  Was $455/week ($23,660) S ALARY L EVEL T EST www.nyemaster.comJuly 2016 ©2016 Nyemaster Goode, P.C.

10.  Poverty Level ($24,250)  Rule making process began March 2014 A TTACKS ON O LD T EST www.nyemaster.comJuly 2016 ©2016 Nyemaster Goode, P.C.

11.  $913/week ($47,476)  Subject to change every 3 years  No Automatic Index  December 1, 2016  4 Million New OT Recipients N EW M INIMUM S ALARY T EST www.nyemaster.comJuly 2016 ©2016 Nyemaster Goode, P.C.

12.  40 th Percentile  Hollowed Out 40 th Percentile T HE “D EATH S PIRAL ” OF THE S ALARY E XEMPTION ? www.nyemaster.comJuly 2016 ©2016 Nyemaster Goode, P.C.

13.  From $100,000 to $134,000 Annually  2020 Update H IGHLY C OMPENSATED E MPLOYEES www.nyemaster.comJuly 2016 ©2016 Nyemaster Goode, P.C.

14. B ONUS C REDIT www.nyemaster.comJuly 2016 ©2016 Nyemaster Goode, P.C.

15.  Explain reclassification to employees  Avoid willful mischaracterization  Clean house “Silver Lining” P OTENTIAL R ESPONSE : A UDIT www.nyemaster.comJuly 2016 ©2016 Nyemaster Goode, P.C.

16.  Titles and Descriptions  Performance Evaluations  Interviews  Employee Self Assessments  Payroll Review A UDIT www.nyemaster.comJuly 2016 ©2016 Nyemaster Goode, P.C.

17.  Small Business, Education, Non-Profit Sectors  Education (admissions, non-instructional, research, athletics, resident life)  Insurance (managers, adjustors, claims)  Unionized Workforce P ROBLEM A REAS www.nyemaster.comJuly 2016 ©2016 Nyemaster Goode, P.C.

18. Q UESTIONS ? www.nyemaster.comJuly 2016 ©2016 Nyemaster Goode, P.C.