Eastman & Smith Ltd.’s Post

With the new salary thresholds going into effect 7/1, now is a great time to reevaluate your employees' job duties to ensure they are correctly classified as exempt or non-exempt under the Fair Labor Standards Act (FLSA). It's a crucial process that can help avoid legal complications and ensure fair labor practices.

This is important for companies to understand. Don't wait until the changes take place to evaluate who may be affected and come up with a plan. Remember, you will need time to evaluate options, communicate any changes, and put any changes into affect.

Big day for HR professionals and employment lawyers. First up, the Department of Labor unveiled new minimum salary thresholds for exempt employees increasing from the currently $35,568/yr to $43,888 on July 1 and then up to $58,656 on January 1, 2025. Employers will have to make some difficult choices soon regarding compensation for those employees who are no longer exempt. Second, the Federal Trade Commission released its Final Rule on non-competition agreements. Following its proposed rule from last year, the Final Rule effectively invalidates non-competes nationwide both prospectively and retrospectively. Both actions are sure to be met with challenges, perhaps as early as tomorrow. More detailed analysis coming shortly so stay tuned. #employmentlaw #FLSA #FTC #noncompete #restrictivecovenants #laborlaw #laborandemploymentlaw #humanresources #hr #DOL #wagehour

More interesting compensation updates with wideranging implications for organizations.

Employers must decide whether to reclassify HCEs, increase their pay, or adjust job responsibilities. Now is the time for employers to strategize and communicate with employees. For personalized guidance on navigating these important decisions, feel free to reach out to your human resource department or an HR consultant. We are committed to supporting you through this process. [email protected] #FLSARegulations #salarythreasholds

Is your company ready for this shift on July 1st? Do you even know what any of this means? No? Let me help! Reach out and let’s discuss how this will impact your company. We still have time to map out a strategy to mitigate any risk and negative impact for both your employees and your business. #HRconsulting #fractionalhr

New Fair Labor Standards Act (FLSA) regulations will raise salary thresholds for highly compensated employees (HCEs), impacting nearly 300,000 workers. Starting July 1, the annual compensation requirement for HCEs will increase from $107,432 to $132,964, reaching $151,164 by 2025. Employers must decide whether to reclassify HCEs, increase their pay, or adjust job responsibilities. Now is the time for employers to strategize and communicate with employees. For detailed insights on how to prepare for FLSA’s new salary thresholds, read more: https://bit.ly/4bCJE9a #FLSA #LaborLaw

Labor laws and regulations are constantly changing which may make it challenging for small businesses and small business owners, especially those without experienced HR professionals + HR teams, to stay up to date and compliant. Outsourcing HR and Employer of Record functions to a Professional Employer Organization (PEO) may be an option. Under the PEO relationship, a co-employment relationship is established between the business and PEO. The PEO assumes certain Employer of Record responsibilities while the business maintains control of the day-to-day business operations. While it doesn't mean business owners can take a passive role (and there are caveats), partnering with a PEO means business owners will have an experienced HR Business Partner (HRBP) and a full outsourced HR team to help, advise, and support businesses on HR, labor, and employment related matters. #LaborLaws #LaborRegulations #FLSA #PEO #business #smallbusiness #HROutsourcing

📢 The threshold for highly compensated employees (HCEs) is changing effective July 1, 2024. Therefore, it is essential to review and revise employee compensation budgets to reflect increased salary expenses. 🤓 #printingindustry #packagingindustry #compensation #hiringnow #recruitmentagency

COMPLIANCE - FLSA New Salary Thresholds for Highly Compensated Employees Effective July 1, 2024, the FLSA total compensation for Highly Compensated Employees (HCE) will increase from $107,432 per year to $132,964, and on January 1, 2025, it will go up to $151,164 per year. As per the US Department of Labor (USDOL) final rule, the earnings thresholds for HCE will be updated every three years starting July 1, 2027. The enclosed article from the SHRM answers who is an HCE by proving some examples and discussing the short test applicable to determining if an employee falls under the HCE classification.  HR professionals must ensure their companies are prepared to comply with the FLSA Final Rule. A must-do for HR is to complete job description and compensation structures revisions that consider current and future (1-3 years) business operational needs. This effort can be particularly daunting for small businesses as these most likely do not have the in-house expertise to analyze and implement the necessary changes, yet compliance with the law is not exempted based on the number of employees a business employ. If you need to know more about FLSA compliance and how it may affect your business, I can assist you. Inbox me for more information. #FLSA #HRCompliance #EmploymentLaw #HR #smallbusiness #Consulting #compliance #Management #Attorney #SHRMSCP