Green quoted in Law360 article entitled, “Attorneys React To DOL’s Final Overtime Exemption Rule”May 19, 2016 |
Scott Green, a partner in the Firm’s Employment & Labor Practice Group, was quoted in a Law360 article entitled, “Attorneys React To DOL’s Final Overtime Exemption Rule. The U.S. Labor Department issued the final version of the overtime exemption rule raising the minimum salary threshold to qualify for the Fair Labor Standards Act’s white collar exemption.
“While the changes certainly upend the long standing status quo, the significance of the impact from a labor cost standpoint can be limited or even eliminated by employers. If you have a class of exempt employees that do not meet the salary basis test, you can simply increase their salary. However, where that option is not realistic, employers can simply pay those employers an hourly wage. The key to controlling cost is to find an hourly wage, that, when accounting for overtime, pays the employee a wage this is on average equivalent to their prior earnings as a salaried employee. For employers exploring this path, the analysis must start now.”
Reprinted with permission from Law360. All rights reserved. 2016.