DATABASICS Time & Expense Blog

FLSA Changes & How To Cope

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Changes might be in store regarding the Fair Labor Standards Act (FLSA); these changes were halted in late 2016 by court order until new details about the requirements of the act could be investigated.

Changes For The FLSA

According to a February 27, 2017 news article, the changes to the FLSA have been extended until May 1st; many business owners are still waiting to hear proposed changes to the FLSA since these changes would come with what could be considerable increases in wages should the act be pushed through in its most recent state.

FLSA Background

Originally, the FLSA update was, as we reported late last year, scheduled to go into effect on December 1, 2016 and would require increased overtime pay and other updates to the way employees are paid, boosting the minimum weekly salary from $455 to $913 per week.

What does the future hold for the FLSA? Predictions say that it will be a while before anything definite is decided as new leaders of the Department of Labor move into position. The big question for business owners is who qualifies for exempt vs. non-exempt status. New information should come out at the beginning of May, though it could be sooner.

Related Article: A Guide To Global Tax Management: How To Simplify Complex Challenges

Other possibilities for the FLSA

In the meantime, some are calling for other possibilities for the final version of the law. Some ideas included changes that would positively affect business owners, including expansion of commission exemptions for industries beyond retail and service, with updates to particular industries like home care and computers. In addition, there have been suggestions for allowing employees to file complaints for companies to handle issues in-house rather than going to the courts for help and for allowing companies to police themselves when it comes to compliance in self-reporting and correcting errors.

Updates should be forthcoming once the new administration has filled the spot for Secretary of Labor. In the meantime, understanding under what branch employees fall—exempt or nonexempt—is one essential way to be prepared for whatever exemption changes may come. We'll stay up to date on this issue, but it's a good idea to understand current FLSA exempt vs. nonexempt employees with this data provided by the U.S. Department of Labor.

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