Nonprofit Resources
Lunch & Learn - Department of Labor Changes
Follow-up from the Lunch & Learn May 16 regarding changes from the exempt employee changes from the Department of Labor. See the handouts below for the policy change.
Notes
The following was provided by a labor attorney through contact with Carrie Glass, as well as an attorney from Eastman & Smith through Don Essex.
- There is litigation pending litigation that may delay the implementation. Regardless, organizations should be prepared to implement changes effective July 1, 2024.
- If an employee does not meet the salary threshold he/she can be classified/reclassified as non-exempt regardless of the job duties.
- Giving employers the right to classify formerly exempt employees as non-exempt can benefit both the employee and the employer. It definitely helps smaller organizations that may not be able to afford to move employees who are classified under one of the exemptions up to the salary threshold.
- However, employers need to ensure that employees reclassified from exempt to non-exempt are not working excessive overtime because they will now have to pay them time and a half for those hours worked in excess of 40.
- If an employee is classified as exempt, it does not matter if the employee is part-time, he/she must still meet the salary threshold.
- If someone fails the earnings test, they are a non-exempt employee regardless of their duties and must be paid overtime for hours worked in excess of 40 hours per week.
- You can pay non-exempt employees on a salaried basis. The fact that they are paid on a salaried basis does not have anything to do with them being exempt or non-exempt.