The Trump administration has now released its final regulations, implementing changes to the federal white-collar overtime exemption tests. This subject has been complex and controversial since significant changes were first introduced by the prior administration. The new final regulations are consistent with positions advanced by the American Bankers Association and the banking industry generally. The new standards will be effective as of January 1, 2020.
We believe the changes will have a limited impact on most community banks. However, this is a good opportunity to confirm overall FLSA compliance going into next year. In this session, we will address the new salary level and the variable pay credit which is now available for consideration. We will specifically discuss the most impacted positions such as mortgage loan officers, part-time exempt employees, and branch managers.
Additionally, we will discuss common positions within our industry where we are seeing challenges and vulnerability in connection with the executive, administrative, professional, computer, and outside sales exemptions. We will also address guidance issued by the Wage and Hour Division over the past 12 months in the form of Opinion Letters, which concern the industry.
Attendees will receive updated self-audit checklists addressing each of the white-collar exemptions, regular rate, and hours worked concepts.
· What is the new salary basis level, and how does it apply to the EAP exemptions?
· What is the new compensation level for the highly compensated exemption, and how is it calculated?
· What is the new variable pay credit and how can it be effectively managed?
· How do the new standards impact the treatment of mortgage loan officers, consumer lenders and related positions?
· What are the most common community bank compliance gaps when it comes to the various white collar exemption “duties” tests?
· What are the Opinion Letters that have been issued by the Wage and Hour Division recently which address specific issues in the financial services industry?
· How should community banks plan to confirm FLSA compliance as of January 1, 2020?