Notwithstanding the very recent good news that it appears the federal government and regulators currently have control and a plan in place to limit the impact of Silicon Valley Bank’s (SVB) and Signature Bank’s recent failures (including a pledge to back 100% of deposits), employers may still be concerned about access to liquidity. We have prepared the following FAQs to address some of the most common concerns that arose among employers for these uncertain times.
A. First, partial payroll payments, if possible, may be considered, but are not a long-term fix. An employer may reduce its Fair Labor Standards Act (FLSA) exposure, even if not its state wage and hour law exposure, if it makes at least the minimum required payments necessary to maintain an employee as exempt, or to comply with minimum wage obligations. To this end, the minimum FLSA salary requirement for exempt status is $684 per week. If you want to reduce an employee’s salary to this level, a notice of such reduction must precede the modification; therefore, provide a written notice of the immediate reduction in salary to $684 per week (or some amount above that minimum threshold) commencing on XYZ date, and then make payments consistent with that lower obligation. Similarly, the FLSA only enforces obligations for the failure to pay someone minimum wage or owed overtime. Accordingly, you can eliminate...
The Dangote Group has become aware of a publication titled “Aliko Dangote Speaks Out on Why He Distanced Himself from Tony Elumelu,” which is false, malicious, and baseless. At no time did the Pre...