Labor and employment laws are constantly evolving and 2014 is no exception. There are major changes on the horizon relating to wage-and-hour regulations, and employers who remain up-to-date on these changes will be in an excellent position to reduce the risk of financial penalties, civil suits, and even criminal charges. This article will highlight four proposed changes to wage and hour laws which may significantly impact employers in the coming year:
• Expansion of Overtime Pay
• Minimum Wage Increases
• The Paychecks Fairness Act
• The Working Families Flexibility Act
2.
Major Wage‐and‐Hour Regulatory Changes on the Horizon
Labor and employment laws are constantly evolving and 2014 is no exception. There are major changes
on the horizon relating to wage‐and‐hour regulations, and employers who remain up‐to‐date on these
changes will be in an excellent position to reduce the risk of financial penalties, civil suits, and even
criminal charges. This article will highlight four proposed changes to wage and hour laws which may
significantly impact employers in the coming year:
Expansion of Overtime Pay
Minimum Wage Increases
The Paychecks Fairness Act
The Working Families Flexibility Act
Expansion of Overtime Pay
The human resources and employment world has been abuzz with the latest
labor news coming out of Washington. President Obama recently signed a
presidential memorandum directing the Department of Labor to revamp its
overtime regulations which would expand the number of salary‐exempt
employees that would qualify for overtime pay. Currently, employees who
are classified as “executive” or “professional” and receive a minimum weekly
salary of $455 ($23,660 per year) are exempt from receiving overtime pay.
This includes a wide range of managers, financial professionals, computer
technicians and other administrative positions.
The current law also allows employers to define an employee's "primary
duty," thereby enabling them to circumvent overtime pay for those
employees. For example, if an employer declares that an employee’s primary
work responsibility is managing a team of warehouse employees, in addition to other duties, the
employee’s entire salary would be excluded from overtime. This applies even if those duties make up
less than half of the employee's full time work. The new law would seek to redefine this application of
“primary duty,” requiring a minimum number of hours performing the exempt duties to qualify as
overtime‐exempt.
Additionally, any new ruling will likely see an increase in the minimum $455 weekly salary which has
been effect since the Bush‐era. A recent study by the Center for Budget and Policy Priorities estimates
that over 5 million workers earn more than $455 per week, but less than $1000. They are
recommending an increase to $984.
It should be noted that many states already have thresholds higher than the federal minimums. For
example, employers in New York cannot deny overtime to a salaried employee earning less than $600 a
week, and California increased its rate from $600 to $640, effective 1/1/14. These rates are slated to
increase further in coming years, with New York increasing to $675, and California to $800, in 2016.
Employers are encouraged to watch out for new developments as this story unfolds in the coming
weeks and months.
Any new ruling will
likely see an
increase in the
minimum $455
weekly salary
which has been
effect since the
Bush‐era.
5.
About CPEhr
Celebrating more than 30 years in business, CPEhr provides human resources solutions and Professional
Employer Outsourcing (“PEO”) services to over 75,000 employees nationwide. Its extensive industry
experience, combined with the flexibility afforded to a privately held corporation, allows CPEhr to
deliver highly customized human resources support, while at the same time offering benefits typically
associated with Fortune 500 companies.
Services include:
Employment Compliance
Human Resources Administration
Payroll & Tax Administration
Management Training
Health Care Reform Compliance
Risk Management Consulting
Employee Benefits
Workers’ Compensation Insurance
With corporate headquarters in Los Angeles, CPEhr is one of the largest, privately held Human
Resources Outsourcing and PEO firms in the state.
9000 Sunset Blvd., #900
West Hollywood, CA 90069
www.cpehr.com
info@cpehr.com
PH: 800.850.7133