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Preparing for Increases to Salary Requirements for FLSA Exemptions

November 30, 2015
Annette A. Idalski and Joan M. McCallum
FSR Magazine

In an article published on Nov. 30, 2015, Annette A. Idalski and Joan M. McCallum provide guidance on the new minimum salary requirements for overtime exemption from the Fair Labor Standards Act (FLSA). FLSA is a federal law that mandates a minimum wage and overtime at a rate of no less than one and one-half times the employee’s regular rates for all hours worked in excess of forty hours per workweek. As the deadline for the new requirements quickly approaches, restaurant owners should evaluate their current pay practices to avoid costly penalties associated with improperly paying employees. Idalski and McCallum outline the most common exemptions to the wage and overtime requirements in the restaurant industry, as well as offer advice on what restaurants can do before the proposed changes take effect. Idalski and McCallum explain, “If adequately prepared, employers should be able to smoothly transition their practices under the current FLSA regulations to the newly proposed rules. However, preparation is key.” For the full article, you may click here.