*Another* New Law All NYS Businesses Must Comply With – Effective January 1, 2020

Effective January 1, 2020, new provision to the The Fair Labor Standards Act (FLSA), administered by the Department of Labor, establishes duties and salary tests an employee must meet to be classified “exempt”.

Under the new provision, If, a “white collar” employee makes less than $35,568 a year or $684 a week, then they must be paid at least minimum wage, have their hours tracked and be paid overtime for any hours in excess of 40 hours a week.

If you have any salary employees earning less than that threshold, they will need to be re-classified as non-exempt, track their hours, and they will need to be paid overtime if they work more than 40 hours a week.

If you want to avoid this, you could increase the payroll to meet the minimum threshold and they will be exempt from the fair play act.

Just a reminder to be exempt, they also must pass a duties test.

This is a federal law, and there may also be NYS law for wages and exemptions, so check your State Law as well, but which ever is richer is the one that applies.

Read more about the The Fair Labor Standards Act (FLSA), exemptions and the duties test fact sheets for your class of business here:

https://www.dol.gov/whd/regs/compliance/whdcomp.htm

Read more about the NYS Wage and Hour Law here:

https://labor.ny.gov/workerprotection/laborstandards/workprot/lshmpg.shtm

Lastly, to be sure your business is protected properly please contact us for a free business owners insurance policy review.