Preparing for Increases to Salary Requirements for FLSA Exemptions

November 30, 2015

Federal overtime exemptions are changing.

The deadline for the new minimum salary requirements for overtime exemptions from the Fair Labor Standards Act (FLSA) is quickly approaching. Restaurants should take the time now to immediately evaluate their current pay practices to avoid penalties and unnecessary costs associated with improperly paying workers.

The FLSA is a federal law that mandates a minimum wage and overtime at a rate of no less than one and one-half times the employee’s regular rate for all hours worked in excess of forty hours per workweek. Generally, restaurants with annual gross sales of at least $500,000 at…