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Guest Author Heather G. Ptasznik: FLSA white collar exemption changes approved … Are you ready?

download [1]On May 19, 2016, the Department of Labor (“DOL”) issued its final rule regarding the Fair Labor Standards Act (“FLSA”). This ruling will have nationwide sweeping implications for most private and public employers as it pertains to who is exempt from the overtime pay requirements under federal law.

The DOL invited interested parties to submit written comments to the proposed rule changes through September 4, 2015. The DOL has now adopted its final rules, which become effective December 1, 2016, which are as follows:

The DOL has stated that these changes will result in the reclassification of over 4.2 million employees to non-exempt status which may result in increased overtime requiring employers to re-evaluate staffing levels and compensation plans to address overtime costs. Failure to properly classify employees can lead to fines and penalties under the FLSA as well as back pay (up to 2 years and 3 years if the misclassification was “willful”) to those employees who were misclassified and the employee’s attorneys fees.


In the course of providing legal advice and support to Kotz Sangster’s clients’ human resources department, Heather G. Ptasznik believes that putting sound, preventive measures in place can assist in reducing potential liabilities. Heather works closely with human resources personnel to ensure the firm’s clients have effective, clear and comprehensive policies and procedures in place to best protect themselves. She believes that being proactive helps clients avoid litigation and statutory violations before incurring devastating fines, costs and being distracted from core business concerns.

Kotz Sangster’s employment law attorneys are available to help you better understand the proposed rules and learn how you can implement best practices in order to remain compliant, avoid wage and hour mistakes and manage your labor costs. Learn more at http://kotzsangster.com/ [2].