34 | Classification Guidebook © 2024 Seyfarth Shaw LLP | www.seyfarth.com We also have considered budgetary impacts, which include the following: We will also be providing necessary information to assist you in being both aware and prepared as a VP or SVP to be able to better communicate with your employees and in the event questions come to you. Please do not hesitate to contact [________] at [________] with any questions. Longer-Form Email to VPs, SVPs and Directors TO: VPs, SVPs and Directors RE: Company’s Response to FLSA Overtime/Exemption Changes You may have heard in the news or elsewhere that the U.S. Department of Labor (“DOL”) has updated regulations that define who is entitled to overtime pay under federal law. The key change involves the minimum salary level needed for employees to be considered “exempt” from the minimum wage and overtime pay requirements of the Fair Labor Standards Act. The “FLSA” is the federal law that requires businesses like ours to pay employees overtime when they work more than 40 hours in a workweek, unless they are exempt. Currently, employees whose primary duty is an executive, administrative, or professional function may, as a general matter, but must be paid in compliance with the salary requirements. Phase 1 rolled out on July 1, 2024, where exempt employees need to be paid a salary of at least $844 per week (or $43,888 per year) to remain exempt. That number will increase on January 1, 2025, to a salary of at least $1,128 per week (or $58,656 per year.) These are significant changes to the laws that govern how we pay our employees. [________] will be undergoing a process to explore our options for exempt employees paid less than $58,656. We expect that the jobs under review will include: We also have considered budgetary impacts, which include the following:
RkJQdWJsaXNoZXIy OTkwMTQ4