and share in your liability. A fiduciary consultant will also listen to your goals and needs, provide recommendations, keep you updated with important information, and ultimately is accountable to you in making the retirement plan successful.
2. Overtime and the New DOL Rule
In May 2016, the DOL announced their new overtime rule. In its most basic sense, the new rule is increasing the minimum annual salary for exempt employees from $23,660 to $47,476, adding an allowance of up to a 10 percent credit toward the threshold for non-discretionary bonuses paid at least on a quarterly basis, increasing the “highly comp” exemption from $100,000 to $134,000 and adding automatic increases to the new thresholds.
The remainder of the Fair Labor Standards Act (FLSA) will remain in effect. FLSA requires that most employees be paid at least the federal minimum wage for all hours worked and overtime pay for all hours worked in excess of 40 hours in a work week. The law also allows for exemptions from both minimum wage overtime pay requirements for employees performing certain duties and paid appropriately according to each exemption.
This all sounds simple; however, misclassifying employees as exempt already is one of the most violated provisions of the law. Because testing is not affected by the new rule, now is a good time to ensure your employees are correctly classified. To qualify for an exemption, an employee generally must meet these three requirements:
1. Be paid on a “salaried basis,” meaning the employee receives a pre-determined salary that is not subject to a reduction because of the quality or quantity of work performed, also known as the salary test2
2. Primarily perform duties that are non-manual executive, administrative, professional, outside sales, or computer- related, as well as a few others defined by the regulations, also known as the duties test3
. You may now view The Steering Wheel—complete with sound
effects—online within a week of distribution. Another awesome feature of this great new technology is that
.
websites in the digital magazine are “live.” So, viewers may click on a site featured in an ad and be transported directly to an advertiser’s website.
Check it out:
www.texastrucking.com This is just one more service that we’re happy to offer on
behalf of the Texas Trucking Association. Issue 3, Fall 2016 39
3.Must be paid a minimum of $23,660 per year, which is moving up to $47,476 per year.
The law does not take effect until December 1, 2016, so if you are in compliance now, you will be in compliance until the new rule takes effect. So take time to plan now and use this as an opportunity to review and enhance your current organizational structure.
Consider seeking advice from a third party specialist to help ensure compliance with these and other statutes. These rules are complex and the consequences can be expensive. The DOL knows this will likely continue to be one of their most violated laws and therefore has increased the budget for enforcement by over 20 percent for 2017 from 2016.
Continues
DIGITAL MAGAZINE NOW AVAILABLE!
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44