HR TIP OF THE MONTH
The New Overtime Regulations Are Here . . . Are You Prepared?
On May 18, 2016, the U.S. Department of Labor (“DOL”) announced the publication of the final rule updating the overtime regulations under the Fair Labor Standards Act (“FLSA”). The primary change under the new rule is an increase in the minimum salary that must be paid in order for an employee to qualify as exempt under the FLSA (i.e., not entitled to overtime). Under the old rule, employees serving in a bona fide executive, administrative or professional capacity were deemed exempt from the overtime requirements provided they were paid a salary of at least $455 per week. Under the new rule, employees must be paid a salary of at least $913 a week to be eligible for the same exemption. As a result of the rule changes employees making less than $913 per week ($47,476 per year) will no longer be eligible for the above exemptions and, therefore, must be paid overtime for hours worked over 40 in a workweek.
The new rule takes effect on December 1, 2016. Employers who are paying an exempt employee a salary of less than $913 a week must immediately begin to plan for how they are going to compensate the employee as of December 1, 2016. For example, in lieu of increasing the employee’s salary to $913 a week, the employer can treat the employee as non-exempt and pay overtime for hours worked over 40. Another option for limiting overtime costs is the implementation of a fluctuating workweek. Employers affected by these new regulations should consult with their employment counsel to discuss their options and determine how best to implement the new overtime requirements.
REGULATORY UPDATE
New Federal Trade Secrets Law Signed Into Effect
On May 11, 2016, President Obama signed into law the Defend Trade Secrets Act (“DTSA”). Prior to this law, trade secret theft cases were governed by the different laws of each state. The new federal law does not displace state laws, but gives litigants access to federal courts to pursue certain types of cases involving theft of trade secrets. Notwithstanding the passing of the DTSA, employers should still evaluate whether their existing employee confidentiality and intellectual property agreements are sufficient to protect them from employees who attempt to improperly disclose and/or use such information and property.
Brach Eichler Employment Services Group attorneys represent employers of all sizes in New Jersey and New York in connection with their labor and employment needs. Our services range from compliance and counseling advice to defending employers in court against claims of wage and hour violations, unlawful employment practices, discrimination and retaliation. We encourage you to contact Brach Eichler Employment Services Group for all of your labor and employment law issues.
