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US DOL Issues New Minimum Salary for Exempts
On September 24, 2019, the U.S. Department of Labor finalized the regulation to increase the threshold for overtime eligibility under the Fair Labor Standards Act (FLSA) to $35,568 a year, up from the current $23,660. The final rule takes effect on January 1, 2020. Importantly, the rule does not change the FLSA duties test.
Under the current law, employees with a salary below $455 per week ($23,660 annually) must be paid overtime if they work more than 40 hours per week. Workers making at least this salary level may be eligible for overtime based on their job duties. This salary level was set in 2004.
The new rule boosts the standard salary level to $684 per week (equivalent to $35,568 per year). Above this salary level, eligibility for overtime varies based on job duties.
The rule also:
· Increases the total annual compensation requirement for “highly compensated employees” (HCE) from the currently enforced level of $100,000 to $107,432 per year.
· Commits to periodic review, but not automatic increases, to update the salary threshold. An update would continue to require notice-and-comment rulemaking.
· Allows employers to use nondiscretionary bonuses and incentive payments (including commissions) that are paid annually or more frequently to satisfy up to 10 percent of the standard salary level.
The new rule is expected to prompt employers to reclassify more than a million currently exempt workers to nonexempt status and raise pay for others above the new threshold.
Connecticut’s Sexual Harassment Law Takes Effect October 1
As of October 1, 2019, Connecticut employers have several new sexual harassment training and notice requirements. The requirements under Public Act 19-6: An Act Concerning Sexual Assault and Sexual Harassment are:
Training Requirements for Current Employees:
· For companies with three or more workers, all employees must receive two hours of training by October 1, 2020.
· For companies with fewer than three employees, all supervisors must receive two hours of training by October 1, 2020.
Employees trained after October 1, 2018 do not need to be retrained.
Training Requirements for New Employees:
· For companies with three or more workers, employees hired on or after October 1, 2019, must receive two hours of training within six months of their start date.
· For companies with one or more workers, supervisors hired on or after October 1, 2019, must receive two hours of training within six months of their start date or the assumption of their supervisory duties.
Importantly, the Act now makes it a discriminatory practice for employers who fail to provide training and also carries a $750.00 fine.
Notice Requirements and Postings
· If an employer has provided an employee an email account or the employee has provided the employer with an email address the Act requires:
o Employers with 3 or more employees to send an email within 3 months of hire stating that sexual harassment is illegal and the remedies available to victims.
o Email’s subject line must be similar to “Sexual Harassment Policy.”
· If the employer has not provided email accounts to employees, it must post the information on its website if it has one.
· The posting requirement must include the “illegality of sexual harassment” as well as remedies available to victims.
The Act carries a $750.00 fine for an employer’s failure to provide notice. Finally, the Act permits the CHRO to inspect the employer’s place of business to ensure compliance with posting and training requirements in certain situations.
Connecticut’s Minimum Wage Increases October 1, 2019
Public Act 19-4 increased Connecticut’s minimum wage to $11.00 beginning on October 1, 2019. Thereafter, the minimum wage will increase as follows:
• $12.00 on September 1, 2020
• $13.00 on August 1, 2021
• $14.00 on July 1, 2022
• $15.00 on June 1, 2023
NOTE: CMTA is preparing special seminars and training sessions to address these issues We will post these soon.
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