Effective 121/1/16, all Salary Exempt employees must be earning $47,476 a year per DOL regulations. This new law is being challenged and a hearing was held on 11/16/16 to argue the case. It is expected that a decision will be announced on November 22, 2016. Employers need to comply or be ready to pull the trigger on 12/1/16 if the law is enforced.
The exempt salary threshold more than doubled from $23,660 to $47,476. By now, you should have identified the employees who may be at risk. Your choices are to either increase their pay or reclassify them as hourly non-exempt employees. If you’re reclassifying them, they can still be managers, but now they will need to take and document their meal breaks and be protected as any other hourly employee.
Which are the 21 states? Alabama, Arizona, Arkansas, Georgia, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Michigan, Mississippi, Nebraska, Nevada, New Mexico, Ohio, Oklahoma, South Carolina, Texans, Utah and Wisconsin.
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