Employee Salary Rule

Words: 641
Pages: 3
Open Document
At CultureIQ, we recognize that paying people fairly is monumental to the success of a company-- which is why we were excited to hear about the new overtime rule. Last month, On May 18, 2016, President Obama and Secretary Perez changed the way we work through the publication of the Department of Labor’s final rule updating the overtime regulations. This new law will extend overtime pay protections to over 4 million workers which will take effect within the first year. Workers everywhere can rejoice in the added compensation benefits as it will increase their earnings. While this is an important ruling for everyone, there are mixed feelings about the rule. Here’s what you need to know about the new law and how employers can use these new parameters …show more content…
Specifically, the Final Rule:
Sets the standard salary level at the 40th percentile of earnings of full-time salaried workers in the lowest-wage Census Region, currently the South ($913 per week; $47,476 annually for a full-year worker);
Sets the total annual compensation requirement for highly compensated employees (HCE) subject to a minimal duties test to the annual equivalent of the 90th percentile of full-time salaried workers nationally ($134,004); and
Establishes a mechanism for automatically updating the salary and compensation levels every three years to maintain the levels at the above percentiles and to ensure that they continue to provide useful and effective tests for exemption.
Additionally, the Final Rule amends the salary basis test to allow employers to use nondiscretionary bonuses and incentive payments (including commissions) to satisfy up to 10 percent of the new standard salary …show more content…
The initial increases to the standard salary level (from $455 to $913 per week) and HCE total annual compensation requirement (from $100,000 to $134,004 per year) will be effective on that date. Future automatic updates to those thresholds will occur every three years, beginning on January 1, 2020.

Why it’s a great thing
Employers who embrace the new law can actually coach their teams on how to better make use of their time. Look at it this way, if your team cannot handle their workload in an 8-hour workday, you may want to rethink your strategy.

Use tech-- Employers can jump on the Millennial bandwagon by adopting tech into their work strategy. Partner with your tech-savvy team to find ways to use tech to streamline processes.
Cancel meetings-- In an article with FastCompany, tech giant, Asana skips meetings on Wednesdays so that their people can get their tasks done without interruption.
Assign a mentor-- If newbie employees are struggling with time management, have them partner with a senior worker. This way, the seasoned employee can help their newer counterpart on their productivity.

It’s how you look at
Show More

Related Documents: Employee Salary Rule

Jean Watson Case Summary

services provided to LWBE. Watson had a very low salary with LWBE and received most of his wages through the S-corp. Watson claimed that the money from the S-corp. was dividends so he shouldn’t pay FICA taxes on the dividend portion of his income. The issue was since his salary was 70000 dollars below what the court said was the fair values for his services. It was decided that the dividends he was receiving though his S-corp. was just a salary and therefor subject to FICA taxes. 2) Why would…

Words 746 - Pages 3

Essay Oracle: Sql and Sql Example

queries the employee table. You know at design time that you want to retrieve employee information where employee salaries are at or above $25,000, and employees work in department 3 or 7. Additionally, the actual criteria values used in row selection are hard-coded—$20,000 for the employee monthly salary and departments 3 and 6 for the department number. /* SQL Example 7.1 */ COLUMN "Last Name" FORMAT A15; COLUMN "First Name" FORMAT A15; COLUMN "Dept" FORMAT 9999; COLUMN "Salary" FORMAT $99…

Words 8598 - Pages 35

Bilingualism Report

are bilingual than to those that are monolingual, especially if both are unemployed. In the same way that bilingualism is to job opportunity, it is to money earned. Albert Saiz, the MIT economist who originally calculated the 2% premium (the general rule that bilingual people make 2% more), reevaluated the value each language held on a company (qtd. in Saiz and Zodio 2). The new premiums…

Words 465 - Pages 2

2015 02 10 Essay

where statistical results are derived based on a salary database. More specifically, an engineering company provides its employment information in a compressed database dump named “employees.zip” which consists of a few database tables such as department, titles, salary and so on. Your task is to categorize the employees…

Words 1345 - Pages 6

Ericsson Bangladesh Hr Policy Essay

EBL HR Policy Manual Contents 1 Recruitment: 3 1.1 Recruitment Process: 3 2 Terms & Conditions of Employment: 3 2.1 Working Hours: 3 2.2 Office Hours during Hartal: 3 2.3 Public Holidays: 4 2.4 Probation: 4 2.5 Confirmation: 4 2.6 Transfer: 5…

Words 9629 - Pages 39

hrm paper

a team together to get the best product? Managing Performance Knowing when certain employees are falling behind and being able to assist them to succeed. Can you give me an example of a time when you noticed an employee slipping in performance? What did you do to help this employee succeed? Managing Change Knowing when to change specials and menu prices. Can you give me an example of a time you needed to make a change in your business and what kind of results did you see from that change moving…

Words 1883 - Pages 8

Business Law 310.5 Essay

Situation A In situation A the employee is requesting to be paid for the 11 weeks he took off to help with the premature birth of his twins. The employee has worked for Company X for 2 years. The time the employee took off totaled 11 weeks to care for his twins. During the 11 weeks of time off the employees former department manager left the company. The new department manager agreed to the employees return to work in the same job as previously held by the employee at the same rate of pay. The…

Words 2667 - Pages 11

Case Sample A Essay

Employment-At-Will Case Case Example A: Elaine has sued Jerry because Jerry fired her. Elaine was on the job for two months.The job offer letter that Jerry had sent her mentioned the great career opportunities at the company and stated that her annual salary would be $30,000. The company is an employment‐at‐will employer. Elaine was given no reason for the termination. After the termination, Jerry hired a man named Kramer, who had less job experience and education than Elaine, for the position. Elaine has sued to get her job back…

Words 918 - Pages 4

Essay on Tax Rules

Tax Rules Ch. 14: Taxation of Individuals Filing status: Married Joint, Married Separate, Head of household, Single Married last day of the year Head of household – non-surviving spouse, maintains home for dependent, unmarried Exceptions: Survivng spouse files MJ for year of death 2 additional years if have dependents Abandoned spouse is not married if >6 months Individual Tax Formula: Total income – for AGI deductions = AGI; AGI – Std/itemized deduction – exemptions = taxable income; TI*tax rate…

Words 1496 - Pages 6

assignment 1 Essay

startup needs to decide what salaries to offer to its employees for the year 2012. In order to keep the employees satisfied she needs to satisfy the following constraints: 1. Tom wants at least 20’000$ or he will quit; 2. Peter, Nina, and Samir want each to be paid at least 5000$ more than Tom; 3. Gary wants his salary to be at least as high as the combined salary of Tom and Peter; 4. Linda wants her salary to be 200$ more than Gary; 1 2 5. The combined salary of Nina and Samir should be…

Words 1358 - Pages 6