So you’ve dodged the FLSA overtime shake-up, what do you need to prepare for next?

Posted on Posted in Blog, Employee Benefits, Employee Benefits Industry Updates, Industry Updates
While many employers including non-profits are breathing a sigh of relief that FLSA changes will not have to be implemented for December 1, there may be more state DOL concerns to consider before the year is out. By now every non-profit knows the new federal FLSA overtime rules will not go into effect on December 1, 2016.  The much discussed federal blockage of the FLSA overtime rule may not be the reprieve non-profits expect. Non-profits still need to comply with state regulations.
Before the federal FLSA overtime rule was struck down by a United States District Court in Texas on November 22nd, it was easier for non-profits to neglect consideration of state requirements because they were superseded by the federal FLSA ruling.

 

 
New York City: Large Employer (11 or more)
New York City: Small Employer (10 for fewer)
Nassau, Suffolk, Westchester Counties
Other New York counties
Effective Date
Overtime Exempt Salary Threshold (salary/week)
12/31/16
$825.00
$787.00
$750.00
$727.50
12/31/17
$975.00
$900.00
$825.00
$780.00
12/31/18
$1,125.00
$1,012.50
$900.00
$832.00
12/31/19
 
$1,125.00
$975.00
$885.00
12/31/20
 
 
$1,050.00
$937.50
12/31/21
 
 
$1,125.00
 
Source: National Law Review, 2016 – http://bit.ly/2gzyF81
 
If the proposed regulations are enacted, employers working in multiple locations in New York State may have to apply different salary thresholds depending on their employees’ location within the state.  Ultimately this amount may be greater under NY State Law than under the FLSA. Now is the time to revisit your specific state requirements, or in the special circumstance of New York City, the municipal requirements.
Overtime is not the only DOL change to be mindful of on a state level. Consider the increase of hourly minimum wage in New Jersey to $8.44 on January 1, 2017.

 

in-new-jersey-the-hour-minimum-wage-is-increasing-to-8-44-1

If you want more information about the DOL changes that will affect you, contact SBG’s non-profit employer expert, John Pfenning today, and subscribe to the employee benefits newsletter to stay plugged in to everything you need to know about complying with requirements and maximizing opportunities.
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