Salary Threshold Legislation Review

FLSA – On December 1st, the federal annual salary threshold for employees exempt from overtime pay will double, increasing from $23,660 to 47,476. Employees who make less than the threshold must be paid time-and-a-half for any hours worked beyond the 40-hour workweek. Many employers will not be able to increase salaried employees’ pay to the new higher amount so those employees will become non-exempt.

NOTE FROM RANDY: FOR YOUR OWN INFORMATION, A FEDERAL JUDGE JUST RECENTLY PUT A HOLD ON THIS REGULATION CHANGE TO THE FAIR LABOR STANDARDS ACT. However, please proceed as if the new regulation is in effect.

Answer the following questions in a total of 525 to 700 words:

• Using In-Text citation, explain the history of the federal salary threshold of the Fair Labor Standards Act of 1938, dating back to its original requirement.
• What will the recruiting challenges be if people were to change from exempt to non-exempt.
• What will the work-life balance challenges be if people were to change from exempt to non-exempt? (telecommuting, flexibility)

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