The December 1, Department of Labor (DOL) Deadline for raising minimum salaries for exempt workers will not go into effect

On November 22, 2016 a federal judge issued a preliminary injunction against Department of Labor rule on the income level at which employees are entitled to overtime set to go into effect December 1 2016.  The judge said the DOL didn’t have the authority to automatically update the rule that would have made minimum salaries for exempt employees $47,476 up from $23,660.

While the DOL is contemplating an appeal, many believe based on campaign promises made by Donald Trump that he will not support the rule and it will eventually die.

What this means:  Anyone on your payroll who receives a salary and is exempt under the Fair Labor Standards Act (FSLA) – See DOL Fact Sheet #17A Does not need to be raised to a minimum salary of $913 per week from $455 or switched to hourly + Time and a half for hours worked over 40 in a week as long as they earn a minimum of $455 per week.

What this does not mean: The ruling does not change any of the definitions of exempt vs. non-exempt employees.

What you need to do: If your company compensation program for minimum salaries in your Pest Control Business is compliant with exempt vs. non- exempt rules than you don’t need to do anything.  Some companies that we encounter pay their technicians a salary.  This is not compliant with the rules and those companies should consider becoming compliant by paying technicians an hourly wage plus overtime after 40 hours or pay them in compliance with the exception under 7(i) – See DOL Fact Sheet #20 in states that accept 7(i)

As Pest Control industry accountants and experts in the Pest Control Industry practices.  We monitor how DOL regulations affect our clients and their business goals. Stay informed and keep up to date with all you need to know to secure your finachial budgets and plans! 

Contact us for more information about how your business can stay in line with the DOL Rules