Will the new FLSA salary level really cost more?

Written by Tom Erb on October 18, 2016

There have been numerous posts on industry forums from staffing executives and owners about the new Fair Labor Standards Act (FLSA) salary levels.  The new overtime rule takes effect on December 1st of this year (https://www.dol.gov/WHD/overtime/final2016/).  Many executives are still planning for this significant change to how exemption from overtime is effected by the new salary levels.  Many firms will need to either change employees’ status to non-exempt, which means paying overtime for hours over 40 in workweek; or, increase exempt employees to the $47,476 annually.  One post noted that that their firms’ recruiters make ~$40,000 annual in salary and are exempt from overtime pay. The post proposed changing the recruiters to salary, non-exempt with a 60-hour workweek. It asked if any other firm was taking this approach.

With a career spanning nearly 20 years, Tom Erb has established himself as one of the staffing and recruiting industry’s top subject matter experts. As a staffing industry consultant, trainer, and speaker, Tom has helped hundreds of firms create and execute sales and recruiting strategies. Connect with Tom on Google+, Twitter or LinkedIn.

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