Employer Law Blog

On August 1, 2016, Massachusetts became the first state to bar employers from asking about an applicant’s salary before offering them a job. Bill S.2119, which goes into effect January 1, 2018, states that it shall be an unlawful practice for an employer to seek the wage or salary history of a prospective employee from the prospective employee or a current or former employer. The law does not prohibit prospective employees from voluntarily disclosing such information. Further, an employer may seek or confirm a prospective employee’s wage or salary history after an offer of employment with compensation has been negotiated.

The Department of Labor’s Final Rule on white collar exemptions takes effect on December 1, 2016. Are you ready? You can answer this question with three simple tests. An employee must pass all three tests to be eligible for exemption from overtime pay.  1. The Salary Basis Test First, the exempt employee must be paid on a salary basis rather than an hourly basis. The salary must not be subject to reduction based on quality or quantity of work. 2. The Salary Level Test Second, the employee’s salary must meet the minimum salary lever. Currently, the minimum salary level is $455 per week, which is $23,660 per year. On December 1, that minimum salary level will increase to $913 per week, which is $47,476 per year.

As we previously reported, the minimum salary amount for an exempt employee since 2004 was $455/week or $23,660/annually. On July 6, 2015, the DOL announced its proposed rule which, in part, would mandate that employers have to pay an exempt employee a minimum salary of $970.00/week, or $50,440/annually.

The U.S. Department of Labor has proposed the biggest overhaul to U.S. overtime law in history. Public comments on the proposal expired on September 4, 2015. The final regulations are expected to be released by the end of 2015, with an effective date in spring or summer 2016. The Proposed Rule focused primarily on updating the salary and compensation levels needed for white collar workers to be exempt. Specifically, the DOL proposes to:

Sandberg Phoenix Employment Law Attorney Courtney Cox takes a look at some of the most frequently asked questions when it comes to reduced schedules and FMLA intermittent leave.