Presented by Zamp HR Background The Fair Labor Standards Act gave most Americans the right to minimum wage and timeandahalf pay for more than 40 hours in a work week The outdated salary threshold provides overtime protections to just 7 of fulltime salaried employees ID: 787924
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Slide1
New wage and hour regulations
Presented by Zamp HR
Slide2Background
The Fair Labor Standards Act gave most Americans the right to minimum wage and time-and-a-half pay for more than 40 hours in a work week. The outdated salary threshold provides overtime protections to just 7% of full-time salaried employees.In March 2014, President Obama directed the Secretary of Labor to update the overtime regulations to reflect once again the intent of the Fair Labor Standards Act, and to simplify and modernize the rules so they’re easier for workers and businesses to understand and apply.
President Obama and Secretary Perez announced that the Department of Labors final rule will entitle most salaried workers earning less than $913 a week ($47,476 a year) over time pay.
Slide3Summary of new law
Salary Threshold.The final rule will raise the salary level for the first time since 2004.Standard salary level.
The final rule raises the standard salary threshold to equal the 40
th
percentile of weekly earnings for full-time salaried workers in the lowest-wage Census region, currently the South.
This will raise it from $455 a week to $913 a week (From $23,660 to $47,762 for a full year worker)
This means that 35% of full-time salaried workers will automatically be entitled to over time, based solely on their salary.
Automatic updates.
This salary threshold will now be increased every three years, beginning in 2020. It is estimated that in 2020 it will be $51,168.
Slide4What do I need to do?
Review all salaried employees payYou then have 5 choices:Change lower salaried employees to hourly
Raise workers’ salaries above the new threshold
Limit workers hours to 40 per week
Leave salary but track hours and pay them time-and-a-half for any hours worked over 40 per week.
Some combination of the above.
Slide5What am I required to track?
What records are required:Employee's full name and social security number.
Address
, including zip code.
Birth
date, if younger than 19.
Sex
and occupation
.
Time
and day of week when employee's workweek begins.
Hours
worked each day
.
Total
hours worked each workweek.
Basis
on which employee's wages are paid (e.g., "$9 per hour", "$440 a week", "piecework")
Regular
hourly pay rate.
Total daily or weekly straight-time earnings.
Total overtime earnings for the workweek.
All additions to or deductions from the employee's wages.
Total wages paid each pay period.
Date
of payment and the pay period covered by the payment.
Slide6Need help?
Zamp HR specializes in helping companies of all sizes stay in compliance.Our team of experts in payroll, benefits, workers compensation and human resources can help you with all matters as it relates to employees and employment laws.
We create strategic custom tailored solutions based on your needs.
For example, we created a tailored “new
employee
onboarding” solution and implemented a
timekeeping
solution for Dave Clarke & Pete Robbins for their 5 Beehive Home facilities located in Utah.
CONTACT Craig Allred or Lisa Stincelli at
888-819-5952 -