Fall 2016 is a busy time of year for most employers, so I’ll make this blog short. You’re likely in the midst (or at least should be!) of analyzing what changes need to be made to employee classifications and wages under the Fair Labor Standards Act (FLSA) before the December 1st deadline. You’re analyzing job descriptions, identifying whose salaries need to be bumped up to meet the new $47,476 threshold, deciding who should be reclassified, and analyzing how to better manage overtime. But don’t forget the most important pieces of this plan – your employees.
Changes to employees’ pay could have significant impact on their lives and they deserve to understand when and why the changes will take effect. Develop a communication plan to minimize impact on morale. If employees have to start punching a clock, the good news is that they can earn overtime or be able to leave in time to make it home for dinner. For those workers who may have their hours or overtime reduced, early communication is recommended to allow them sufficient time to adjust their household budgets or to look for part-time employment on weekends to earn supplemental income. And of course there will be those who will receive a bump in salary, which is always welcomed news!
But don’t just explain all of this in a written memo that gets distributed in your employees’ paychecks around Thanksgiving. Plan to meet with your employees IN PERSON and far in advance of December 1st. Explain how you have been deliberate and thoughtful in this analytical and complicated process. Explain that the changes in the law apply to almost all employers in the country, not just your company. And explain why the change may be impacting the individual who is sitting across the table from you. After the face-to-face explanation, then send the written memo.
For help in better understanding the FLSA’s new federal overtime rule and how it may impact your business, contact Laura Rubenstein.
ABOUT LAURA L. RUBENSTEIN
410.209.6433 | lrubenstein@offitkurman.com
Laura Rubenstein is the Chair of the firm’s Labor & Employment group. Her practice as an employment lawyer concentrates in general civil litigation and employment litigation, representing corporate clients and nonprofit agencies in a wide range of matters. These matters include the defense of state and federal discrimination claims, workplace and sexual harassment charges, ADA and ADEA claims, wage and hour issues, FMLA disputes, employment contracts, restrictive covenant agreements, general contract claims, employment-related and other business tort claims. Mrs. Rubenstein also provides ongoing employment advice and training seminars to companies to implement and develop effective employment policies and procedures. Connect with Laura on LinkedIn and Twitter for regular updates.
ABOUT OFFIT KURMAN
Offit Kurman is one of the fastest-growing, full-service law firms in the Mid-Atlantic region. With over 120 attorneys offering a comprehensive range of services in virtually every legal category, the firm is well positioned to meet the needs of dynamic businesses and the people who own and operate them. Our eight offices serve individual and corporate clients in the Maryland, Delaware, New Jersey, and Northern Virginia markets, as well as the Washington DC, Baltimore, Philadelphia, and New York City metropolitan areas. At Offit Kurman, we are our clients’ most trusted legal advisors, professionals who help maximize and protect business value and personal wealth. In every interaction, we consistently maintain our clients’ confidence by remaining focused on furthering their objectives and achieving their goals in an efficient manner. Trust, knowledge, confidence—in a partner, that’s perfect.
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