New litigation to stop the proposed DOL increases for the salary basis test – uncertainty continues to reign!

March 21, 2016 at 5:18 pm | Posted in DOL, Employee, Employer, Employment Law, FLSA, New employment laws/amendments, wage & hour | Leave a comment
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Below is the opening text for a Bill entitled “The Protecting Workplace Advancement and Opportunity Act (S. 2707 and H.R. 4773)” which Bill is attempting to halt the proposed DOL salary basis increase for exempt employees.  The Bill’s purpose is to nullify the proposed rule and require DOL to conduct further analysis of the impact on small businesses, non-profits and public employers of raising the salary basis test from $23,660 annually to $50,440.00 annually.  Yes, that new amount is double the current amount!

114th Congress, 2d Session .H.R. _______

To require the Secretary of Labor to nullify the proposed rule regarding defining and delimiting the exemptions for executive, administrative, professional , outside sales, and computer employees, to require the Secretary of Labor to conduct a full and complete economic analysis with improved economic data on small businesses, nonprofit employers, Medicare or Medicaid dependent health care providers, and small governmental jurisdictions, and all other employers, and minimize the impact on such employers, before promulgating any substantially similar rule, and to provide a rule of construction regarding the salary threshold exemption under the Fair Labor Standards Act of 1938, and for other purposes.

For the full Bill text, please go to:  http://edworkforce.house.gov/uploadedfiles/intro_bill_pwaoa.pdf

From Hultman Sensenig + Joshi:  The above and this blurb is not legal advice, nor does reading this blog create any attorney client relationship between the reader and this law firm.  Employers should be very aware of the significant impact this salary basis threshold proposed increase will have on their bottom line.  Reviewing job descriptions now and determining who is exempt v. non-exempt, and reviewing whether independent contractors are truly independent contractors in light of the economic realities test is something that is better proactively than reactively.  
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