Associate Alex Dunn was quoted in a HR Bartender blog post, “New FLSA Changes 2019 – What You Need to Know,” about the expected impact of recent changes to the Fair Labor Standards Act (FLSA).
Dunn said the most immediate and significant change in the act is an increase in the minimum salary threshold for exempt employees from $455 per week to $684 per week, beginning on Jan. 1, 2020. Other important changes include allowing employers to use nondiscretionary bonuses and/or incentive payments to make up part of an employee’s salary. “In practice, this means that an employer who pays a 5% bonus every year to an employee can count that 5% toward the minimum salary threshold,” he said.
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