Starting on December 1, 2016, employers across the country will have to contend with new federal overtime regulations, when the provisions to the Fair Labor Standards Act (FLSA) go into effect. As with any large-scale change, employers may struggle to adapt; particularly since a large number of their employees will now classify as non-exempt for overtime pay. Naturally, several questions will arise that could have a critical effect on businesses.
Since its introduction in 1938, the Fair Labor Standards Act, or FLSA, has had a significant impact on the way we work. This landmark legislation established many of the things we take for granted today – a national minimum wage, the 40-hour work week, guaranteed overtime pay for certain jobs and child labor prohibition. And as the needs of the workforce continue to change, the FLSA has evolved in turn, amending regulations to protect today’s workers and impacting the way organizations manage, schedule, deploy and compensate employees.