Every year, some developments in employment law have greater potential to affect the manufacturing industry than others. Thus far in 2023, possible changes to the salary threshold under the Fair Labor Standards Act (FLSA) and changes to the independent contractor classification are among the developments manufacturing employers should watch.
It is anticipated that the Department of Labor (DOL) will adjust salary thresholds for exempt employees under the FLSA, revisiting changes originally proposed under the Obama administration.
The current annualized salary requirement for exempt employees is a minimum of $35,568, but DOL has signaled proposing a new higher salary threshold. If employers do not modify salaries to meet these new requirements, their employees may fall out of their exempt classifications and be entitled to overtime.
Manufacturing employers should begin their review of salaries now and keep the new salary amounts in mind as they budget. If the new salaries are not feasible, manufacturers need to plan now to eventually reclassify employees as non-exempt, understanding that this will trigger entitlements to overtime for all hours in excess of 40 in a workweek under the FLSA. Manufacturers then may need to take greater measures to offset the impact a having more non-exempt workers, including increased hiring, shift modifications, and so on.
Manufacturers that utilize independent contractors could be affected by...
Field Marshal Lord Bramall, one of Britain’s greatest soldiers, was known affectionately to his grandchildren as “Papa”. Alex Bramall, his grandson, a fashion photographer, was particularly close ...