Fair Labor Standards Act - Shifting Flood Waters
March 30, 2017
Registration 7:30 a.m.
Presentation: 7:45 a.m. to 9:00 a.m.
The U.S. Department of Labor proposed rule changes in March, 2016 that would double the salary exemption test from $23,660 to $47,476 effective December 1, 2016. Ten days before the implementation of the new rule, a federal circuit court judge, acknowledging the opposition of 21 states, issued an injunction challenging the DOL’s authority to raise the threshold to this high rate and to automatically adjust the salary test every three years. The Department of Labor appealed the Court’s ruling in December, 2016. The State of California proceeded to raise the minimum wage rate for employers effective January 1, 2017.
Employers are grappling with a number of policy questions given the expected direction of the Department of Labor under the New Trump Administration and the basis of the Federal Court’s injunction:
-What do these developments portend as to the minimum salary exemption test for employers with California business operations or those in other states?
-What are the implications for the Highly Compensated Employee Test?
-How will the non-discretionary bonus and incentive payment credit of 10% of the standard salary test be affected by the injunction?
-What other actions might employers take in raising salaries or reducing overtime hours?
Partner, Fisher Phillips
Mark Jacobs is a partner in the Irvine Office of Fisher Phillips. His practice is focused on defending employment-related lawsuits, compliance, and administrative complaints on a variety of issues, including overtime adherence, harassment, retaliation, and discrimination.
Mark represents employers in both state and federal courts as well as before state and federal agencies, including the Division of Labor Standards Enforcement (DLSE), Equal Employment Opportunity Commission (EEOC), and the California Department of Fair Employment and Housing (CDFEH).
Mark has extensive experience in handling wage and hour cases and other administrative matters. A significant portion of his practice is devoted to preventive employee relations programs that include supervisory training and the development and administration of effective human resources policies and practices.
Mark is a frequent lecturer before trade groups, associations, insurance organizations, and private employers. He regularly conducts in-house management seminars and training sessions for executives, supervisors, managers, and human resources professionals on wage and hour compliance and all aspects of labor and employment law.
Prior to joining the firm, Mark worked as a Legislative Aide in the California State Assembly and served as a Deputy Attorney General in the California Attorney General's Office.