For MOST Businesses The Fair Labor Standards Act Is Confusing and Difficult To Understand, Leaving Most Out of Compliance
NORWALK, CT, May 18, 2016 (David Lewis) —
Today’s announcement by the White House pertaining to critical changes to the Fair Labor Standards Act (FLSA) will result in a seismic shift in virtually all businesses, small and large, in the US. Specifically, the law change will essentially force all employers to look at those in their employ making less than $47,476 per year and ensure that by 12/1/16 they are eligible for and paid for overtime. This represents a major strategic decision for all companies and one that is baked into an already confusing and subjective set of regulations and guidelines that make up the FLSA.
We would like to introduce HR and workplace subject matter expert David Lewis as a potential source to educate business owners and leadership on how to best handle this news and its impact so as to limit disruption to their businesses, as well as to comply. Here is his advice, designed to help businesses address these challenges as tactfully and strategically as possible:
- The law immediately forces all businesses to start looking at their employees making less than $47,476 (the new threshold) to see if any are presently classified as EXEMPT, meaning NOT eligible for OT.
- Several key choices can then be considered including:
- By 12/1/16, raise the salaries over the new $47,476 threshold for those affected.
- OR Start to pay OT to those affected as of 12/1/16.
- OR Limit hours to those affected as of 12/1/16.
- For many businesses this will cost them $$ with any of these choices.
- For MOST businesses the Fair Labor Standards Act is so confusing and difficult to understand, leaving most out of compliance. This only will add to the confusion and put a spotlight on businesses and their failure to comply.
- The most common FLSA issue is that business owners feel that if they pay fairly (in their eyes) they can, as owners, determine who to pay OT and who to just pay a “fair” salary. As such many business owners do not meet compliance standards. Further, this law change will shine a spotlight on how the FLSA works and will raise awareness, causing more claims and more reclassification efforts.
- While we have until 12/1/16 to sort the above out, the right decisions will take a fair amount of time for most firms to evaluate, making the time to act more immediate.
David Lewis is the President / CEO of OperationsInc, a 15-year-old Human Resources Outsourcing and Consulting firm providing HR related services to over 1,200 clients in the small to mid-sized business space. As a 30 year HR professional, David is viewed as subject matter expert in the area of human resources and workplace management and has been featured in national publications such as The New York Times, Inc. Magazine, Entrepreneur, US News & World Report and Forbes. David also has extensive experience in both live television and radio, appearing on Bloomberg West and as a recurring guest on MSNBC’s “Your Business”.
Link to MSNBC “Your Business” segment: https://www.americanexpress.com/us/small-business/openforum/videos/the-latest-government-deadline-is-looming/
Link to Bloomberg West live segment: http://www.bloomberg.com/news/videos/2015-03-26/are-small-firms-neglecting-hr-
Link to David’s bio: http://www.operationsinc.com/staff/david-lewis
Link to Press Page: http://www.operationsinc.com/media-coverage