New FLSA Overtime Exemption Regulations - Required Action Items Prior to July 1

On April 23, the Biden Administration released final regulations which significantly limit overtime exemptions for financial institutions. The regulations, effective July 1, raise the salary requirement to $43,888 per year. Then the required salary payment increases further to $58,656 effective January 1, 2025. That is a dramatic change to the current $35,568 requirement. The new regulations include other changes such as automatic salary updates, which will also create compliance obstacles.

Recorded Thursday,
May 30th, 2024
Presented by Steven Greene
1h 30m total length
$299.00 or 1 Token

Includes: 30 Days OnDemand Playback, Presenter Materials and Handouts

  • Auditing
  • Compliance
  • Human Resources
  • Risk Management/Legal
  • Bank Legal Counsel
  • Board Member
  • Branch Manager
  • Compliance Officer
  • Human Resources Officer
  • Internal Auditor
  • Senior Management
  • Training Manager
  • Trainer

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Federal court litigation may challenge implementation of the new rule. We can also anticipate congressional activity under the Congressional Review Act, where legislation can nullify some agency regulation. But with any relief uncertain, financial institutions will need to evaluate application of the new rules, plan for necessary classification and compensation changes, and consider alternative compliance approaches available under the FLSA.

This session will brief attendees regarding the final regulation terms which specifically impact financial institutions positions and practices. We will describe the range of compliance options and considerations to weigh when evaluating those options. The most commonly impacted position will be identified. Finally, as the new regulations are an opportunity to confirm exempt status of current positions in accordance with the exemption “duties” tests, we will update attendees regarding these standards.

What You'll Learn

  • Evaluation of new salary levels for impacted exemption tests
  • Explanation of new annual compensation levels for highly compensated exemption
  • Evaluation of details in the regulations which will impact us, such as automatic adjustments
  • Examination of 10% credit for certain nondiscretionary incentive payments
  • Discussion of alternative FLSA pay plans that may be worth considering
  • Discussion of approved FLSA practices to minimize reclassification obligations

Who Should Attend

HR, senior leaders, compliance, audit and bank counsel.

Steven Greene

Instructor Bio

Steve Greene specializes in employment litigation, employee benefit issues and compensation matters supporting community banks. He regularly speaks to employment lawyers and human resources professionals in the banking industry. During the past 40 years, Steve has assisted financial institutions evaluate compliance obligations. He has also managed federal and state regulatory investigations and litigation across the country. His work has also included working with industry associations to influence the DOL and members of Congress.