FLSA Proposed Overtime Rules Are Out: Be Ahead of the Curve

In order for a two week vacation to be relaxing and fun, it takes a certain amount of pre-planning.  Our family completed a two week vacation out West with various overnights and stops at famous places in Kansas, Utah, Wyoming, Montana, South Dakota, and Missouri.  We had set times and days for certain events and some flexible time for what we might discover along the way.  Our children were involved in the planning and it by far was the best vacation our family has taken to this day.

 

When you hear the acronym FLSA, it is not a favorite term that rates as high as a two week vacation. However, they are similar as they both require proactive planning so the outcome will be positive.  The proposed FLSA changes following President Obama’s directive to expand the eligibility for more employees to receive overtime pay was finally announced by the President on June 29, 2015.  The World at Work organization estimates 6,000,000 exempt salaried U.S. employees could become non-exempt hourly workers. Based on several sources, the salary test and primary duties test for determining whether a job is classified as exempt or non-exempt will be impacted.  The current annual exempt salary level of $23,660 will increase to $50,440 or $970 a week. The primary duties test is projected to require that at least 50% of the essential duties be considered as exempted level duties.

 

Our automated web-based job description writer, DBDescriptions, will help Banks with the primary duties test.  Job duties and tasks can be reviewed to determine what positions may be at risk as our software tool allows you to enter in a percentage of time and frequency for each essential duty.  With the collaboration feature, managers and employees that live and perform the job can and should weigh in to confirm the makeup and requirements of the job.  In the future, there is a strong likelihood that the Department of Labor will actually want to observe an employee in their position to verify what the job description states compared to actual performance.  Making sure that the job description is right and matches with what the employee is doing will be a normal function of the company’s compliance efforts.

 

DBDescriptions was created in 2008 and introduced to the public in 2009.  The 1100 pre-loaded job descriptions and the position analysis questionnaire help to create FSLA and ADA compliant job descriptions in minutes.  We believe that we are the first SaaS-based job description management tool and our annual per user fee for unlimited access is only $295.  This is inexpensive insurance which will give you a peace of mind equal to your next two-week vacation.

 

For more information, contact Bruce or Blair Johanson at DB Squared/Johanson Group, an Arkansas Bankers Association endorsed vendor. Their phone number is (479) 587.0151.