Tag Archives: Salaried

You Need to Review Exempt and Salaried Employee Status

7 Aug

A client this past week asked me to review the status of a salaried employee for compliance with the exempt or non-exempt rules of California and Federal law. As it turns out, this key employee is primarily a “doer” meaning a person who handles very important actions every day for the company, but has limited responsibilities which involve independent decision making and the exercise of discretion. Not only that, but in earning about $34,000, the person is on the borderline of earning enough to qualify as an exempt employee by the level of their income.
Certainly – by the first of 2016 – this person would earn too little to qualify as exempt from overtime under the new rules being planned by the US Department of Labor under changes announced to the Federal Fair Labor Standards Act. You may have read in the news that the income level under these planned FLSA changes will go to over $50,000 per year.
Salaried or not, exempt from over-time or not, these are big issues for employers in California and involve a lot of lawsuits and lots of money and potential damage claims. Now is the time for every employer to look at every single salaried employee and ask an employment attorney or wage and hour specialist – am I ok? Do it long before January 1, 2016 while you still have time to make changes and correct any problems.
Let us know at Don Dressler Consulting if you need assistance. Our team of HR consultants are here to help. Email us at dondressler1@hotmail.com