Final FLSA Overtime Rules Announced
On May 18th, the Department of Labor announced the new salary threshold for certain employees to qualify as exempt from minimum wage and overtime under the Fair Labor Standards Act’s White Collar Exemptions.
Effective December 1, 2016, the new minimum salary level will be $47,476 per year ($913 per week).
The minimum salary requirement applies to all white collar workers who are classified as exempt executive or administrative employees, and to many who are classified as exempt professional employees.
More about the rule:
- The salary threshold will increase every three years.
- It is expected that the next change, which will be effective January 1, 2020, will increase the minimum salary to approximately $51,168.
- The duties tests for the White Collar Exemptions have not changed.
- Come December 1, the federal minimum salary level will be higher than any state-mandated minimum, and therefore must be followed.
Bonuses:
Up to 10% of the income may come in the form of non-discretionary bonuses, incentive pay, or commissions, as long as that portion of the compensation is paid at least quarterly.
In the event that an employee does not earn enough in bonuses and commissions to meet the full minimum salary requirement, a catch-up payment can be made by the employer once a quarter.
Salary threshold for Highly Compensated Employees (HCE):
The new rule also increases the minimum salary threshold for the Highly Compensated Employee (HCE) exemption from $100,000 per year to $134,004 per year.
This exemption can be used when an employee carries out a limited number of executive, administrative, or professional duties, but is very well-compensated.
This number will also increase every three years, and is expected to rise to approximately $147,524 on January 1, 2020.
*Integrity HR will be hosting webinars on this topic on June 9 & July 13th to help you stay compliant! Our panel of experts will explain the new rules and answer your questions about how to implement changes. Click here to register!
New OSHA Rule Requires Electronic Submission of Data
Last month, the Occupational Safety & Health Administration (OSHA) published a final rule requiring most employers to electronically submit their injury reports to OSHA annually.
These reports include injury logs (OSHA 300), year-end summary of injuries (OSHA 300A) and individual incident reports (OSHA 301).
According to the new rule, after companies electronically submit these reports, OSHA will then post the information on a publicly accessible web page.
No new recording is required. The only new requirement is the electronic reporting.
Here’s the breakdown of the new reporting rules:
- Companies with 250 or more employees (at any time in previous year) and are subject to OSHA’s reporting regulations: Will be required to electronically report at least some portion of the information from forms 300, 300A and 301
- Companies with 20 – 250 employees (in certain industries only): Must electronically report information from their 300A annual summary form
- Companies that are not required to submit electronically under either of the first two categories: Must report information from one or more of forms 300, 300A or 301 if requested by OSHA.
The new reporting regulations will go into effect on January 1, 2017.
Employers should report on or before July 1, 2017 (for CY 2016, but only for 300A forms for both categories that are required to electronically report) and on or before July 1, 2018 (for CY 2017).
Reports for calendar years after 2017 will be due no later than March 2 of the following calendar year.
Note: The Rule also sets anti-retaliation protections for those employees who report job-related injuries or illnesses. The anti-retaliation protections are effective August 10, 2016.
Click here to read more information about this rule on OSHA’s website.
IRS Announces Contribution Limits for 2017 HSAs
The IRS recently announced the contribution limits for Health Savings Accounts (HSAs). The 2017 contribution limit for self-only plans is $3,400 (a $50 increase from 2016.) The family plan limit remains the same from 2016 at $6,750.
The definition for what is considered a high-deductible health plan (HDHP) in 2017 is the same as in 2016:
- To qualify as an HDHP, self-only coverage must have an annual deductible of $1,300 and no more than $6,550 in out-of-pocket expenses.
- Family coverage must have at least $2,600 in annual deductible and no more than $13,100 in out-of-pocket expenses to qualify as an HDHP.
Note: out-of-pocket limits for ACA-compliant plans are different. These limits are $7,150 for self-only plans and $14,300 for family plans.
To read the full rule, click here.
