Posts Tagged ‘salary’

Are you Prepared for the New Overtime Rule?

Thursday, September 29th, 2016

On December 1, 2016, the new US DOL Overtime Rule will officially go in effect. This new rule determines which employees are exempt from overtime. Employers will not have to pay overtime to exempt employees. If an employee is non-exempt, employers need to pay overtime for actual hours worked in excess of 40 hours in a single work week. The FLSA (Fair Labor Standards Act) defines which jobs may be exempt from the overtime penalty depending on minimum salary and duties performed. Exemption categories include both a minimum salary threshold, and a duties test. Jobs will have to meet both standards to qualify for exemption.

Feeling overwhelmed? We don’t blame you. Where do you begin? How do you prepare?

Organization and communication are a major factor in businesses making the shift to compliance as painless as possible.

Below are 3 key steps in preparing for the upcoming deadline.

  1. Conduct an internal audit to identify positions and employees potentially affected.
    In recent research conducted by Paychex found that one out of five employers were not aware of the final rule, and 55% did not think the new rule applied to them.
  2. Educate your employees on time keeping and tracking overtime.
    Some employees might still receive a salary but are now required to log their worked hours. Set up training on proper time recording practices.
  3. Develop a communication plan.
    Talk to your employees, explain the new law and guidelines. Make them aware of benefit changes, if any, due to the necessary change in FLSA status from exempt to non-exempt. Misclassifications can cause challenges and serious financial consequences.

2016_telu_header_2In our upcoming 2016 Triad Employment Law Update Conference in Greensboro, North Carolina, lead attorneys from Constangy, Brooks, Smith & Prophete, LLP and CAI’s HR experts will provide registrants with key information about current and proposed changes in state and federal employment law. Building the proper infrastructure to protect your business and effectively navigate the Department of Labor’s new overtime rules and related regulations is critical to every company’s success. One of the concurrent breakout sessions at the 2016 Triad Employment Law Update Conference will focus on protecting your business and cover the shrinking white collar exemptions, interns, joint employers, postliminary duties and the DOL’s approach to enforcing these new standards.

Want to learn more about the conference and who should attend visit https://www.capital.org/triadlaw.

Every workplace has questions that need to be answered, and the sooner the better. Contact CAI’s Advice & Resolution team today!

Wage and Hour Issues: Allowed Deductions From an Exempt Employee’s Salary

Thursday, August 7th, 2014

In today’s video blog, CAI’s Senior Executive of Government Relations and member of the Advice and Resolution team, George Ports, discusses allowed deductions from an exempt employee’s salary. George starts with a reminder: exempt employees are paid on a salary basis. Deductions are allowed but are limited. George shares an example in the video.

Another question that George explores is whether an employer is allowed to suspend an exempt employee without pay for violating a major work rule. He says the answer is yes, but the work rule must be major. He gives suggestions of what counts and what doesn’t.  George points out several scenarios that illustrate why you would have to pay an employee based on when he or she was suspended.

George offers additional deductions that can be made to an exempt employee’s salary in the video. One of the deductions he explains is the entire week concept. If there is not work completed by the employee in an entire week, the employer does not have to pay the employee for that week. Highlighting today’s technology, George emphasizes that if an employee is responding to emails or voicemails during this week, the entire work week exception is invalid.

Improper deductions from an exempt employee’s salary can destroy the exemption status for that employee and the exemption status of employees in that same classification, George says in the video. He also lists deductions that an employer is not allowed to take from an exempt employee’s salary.

If you have any questions about wage and hour regulations, please call CAI’s Advice and Resolution team at 919-878-9222 or 336-668-7746.

NC Companies Projected to Increase Salary Budgets in 2012

Thursday, September 1st, 2011

CAI’s 2011 Wage & Salary Survey revealed that many North Carolina companies will be rewarding their employees with annual salary increases in 2012. Eighty percent of the nearly 500 organizations surveyed anticipate raising employee pay in 2012 by an average of 3.0 percent.

 

National Predictions Match NC

CAI has conducted its annual Wage & Salary Survey for more than 20 years, and it remains the most comprehensive and in-depth survey conducted of North Carolina Employers. This year’s survey represented 535 facilities in the state. Survey data was collected between April and May of this year. The results from North Carolina employers align greatly with salary data on a national scale. WorldatWork’s 2011-12 Preliminary Salary Budget Survey showed projections of 2.9 percent in 2012. Similarly, the Hay Group received results showing median pay increase of 3.0 percent in 2012.

 

 Salary Increases in 2011 

 

Count

(including 0%)

 

% Increase

(including 0%)

 

Count

(excluding 0%)

 

% Increase

(excluding 0%)

 

Exempt 

491

 

2.4%

 

369

 

3.1%

 

Hourly

468

 

2.2%

 

354

 

2.9%

 

 

 

Projected Salary Increases for 2012

 

Count

(including 0%)

 

% Increase

(including 0%)

 

Count

(excluding 0%)

 

% Increase

(excluding 0%)

 

Exempt 

446

 

2.5%

 

365

 

3.1%

 

Hourly

421

 

2.3%

 

338

 

2.9%

 

 

 Trends to Watch

The 2011 survey results indicated that only 19 percent of the participating facilities planned to not give annual salary increases in 2012. This statistic is lower than the 2009 results, which showed that almost 50 percent of participating organizations did not provide staff salary adjustments.

 

Survey results also revealed that there will be a limited use of “cost of living” or “across the board” increases where all employees typically receive the same percent increase. Now organizations are divvying up raises based on the performance of staff members to acknowledge and reward their high performers.

 

Additional Survey Data

The complete CAI 2011 Wage & Salary Survey includes company wage structure, pay practices and compensation philosophy, base pay increases for 2011, base pay projections for 2012 and detailed pay data for up to 358 jobs common to North Carolina employers. 

 

CAI is the premier provider of comprehensive survey data on the pay, policies and benefits provided by NC employers.