It’s a challenge to keep up sometimes. New labor rules and laws are continually being implemented, keeping us as employers on our toes. The following suggestions on how employers can be in line with the wages and hour rules come from the June 2015 edition of CCH – Ideas and Trends.
The article begins by sharing the new salary tests and revised duties that apply to millions of exempt employees. (Editor’s note added 11/23/16: As of 11/22/16, this salary test has been blocked, however that doesn’t mean you’re out of hotwater. Doris) My question is, “What’s an employer to do?”. Try the following.
- Identify exempt employees.
- Conduct job analyses to determine which employees perform exempt duties as defined by the revised rules.
- Review job descriptions to make sure they accurately reflect the work being performed.
- Update payroll systems to ensure that exempt and non-exempt designations are correct, overtime is paid when due, and docking practices are in compliance with FLSA. See the following list of conditions under which the exempt employee’s salary can be reduced in a pay week.
• Missed one or more full days for personal reasons other than illness or accident;
• Was absent for one or more full days because of illness or accident, and the employer can reduce the salary according to a
bona fide sickness/accident plan, policy or practice;
• Received compensation for serving in the military or on jury duty, allowing the employer to reduce the employee’s regular salary by that amount;
• Broke a major safety rule, therefore the employee’s salary is reduced as a good-faith penalty;
• Received an unpaid disciplinary suspension of one or more full days imposed in good faith for infractions of workplace conduct rules (e.g. sexual harassment);
• Was absent for an entire work week (exempt employees do not have to be paid for any week in which they perform no work);
• Did not work some days during the first or last week of employment;
• Took intermittent (partial-day) leave under the Family and Medical Leave Act.
- Don’t drop your guard. Many of these issues are very gray, and the Wage and Hour Division and courts are still deciding on how to interpret the laws.
Do you know we help employers just like you with such analyses? If we may be of help with any part of your investigation, contact us to schedule a conversation.