Fair Labor Standard Act: Impact and Outlook

FacilitiesNetClients in the News: Businesses have many challenges when trying to operate and stay profitable. They seek to keep their overhead costs as low as possible, provide high-quality products and services. Business leaders need to operate while staying within regulations and government mandates that affect their industries and operations.
Recently, businesses across the country have been battling to keep up with all of the federally required changes regarding compensation. In May 2016, they were hit again when they were told the U.S. Department of Labor’s Fair Labor Standard Act (FLSA) ruling would go into effect on Dec. 1, 2016.
The FLSA ruling states that the salary threshold would be doubled to $47,476 per year to avoid exemption from paying full-time employees overtime — a monumental change that would make about 4.2 million currently exempt employees eligible for overtime pay. The ruling also states that the department will increase the salary threshold every three years. The Society of Human Resource Management states that based on current projections, the salary threshold is expected to rise to more than $51,000 with its first update on Jan. 1, 2020.
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