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Archive for May, 2016

OVERTIME EXEMPTION UPDATE

Posted on: May 31st, 2016 by admin

On May 18, 2016, President Obama and Secretary of Labor, Thomas Perez, announced the publication of the Department of Labor’s “Final Rule” updating the overtime regulations. This is the first update in over a decade, and will mean that certain workers are now exempt from the requirement that they be paid “overtime wages.”

The Final Rule focuses primarily on updating the salary and compensation levels needed for Executive, Administrative and Professional workers to be classified as “exempt” from overtime payment. Specifically, the Final Rule makes the following significant changes to the existing regulations:

  1. Raises the standard salary level required for a full-year worker to meet the exemptions.  The level will be raised from $455 per week, or $23,660 annually, to $913 per week, or $47,476 annually;
  2. Sets the total annual compensation requirement for highly compensated employees subject to a certain test known as the “minimal duties test.” The level will be raised to $134,004 from the current level of $100,000; and
  3. Establishes a mechanism for automatically updating the salary and compensation levels every three years.

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The Final Rule goes into effect on December 1, 2016. On that date, the initial increases to the standard salary level and highly compensated employees’ total annual compensation requirement will become effective. Future automatic updates to those thresholds will occur every three years based on inflation, beginning on January 1, 2020.

As a result of this rule change more employees will be entitled to receive overtime wages.  An estimated 18% of full-time salaried employees in Massachusetts will be eligible for time and a half from the new overtime provisions, while an estimated 35% of full-time salaried employees will benefit nationally from the new provisions.

Because of the strict penalties against employers (and certain individuals associated with the employers), both employees and employers must be aware of these important changes.

 

Attorney Belfort Moderates Labor & Employment Law Update Panel at MBA’s 37th Annual Spring Conference

Posted on: May 20th, 2016 by admin

On Friday, May 6, 2016, Bennett & Belfort partner, David E. Belfort moderated the Labor and Employment Update Panel at the Massachusetts Bar Association’s 37th Annual Labor & Employment Law Spring Conference at Suffolk University Law School.

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The Panelists addressed a variety of recent legislative and common law developments in both labor and employment law before a room of about 85 attendees.

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The experienced panelists included labor attorneys Nicole Decter  and Kenneth Bello  in addition to employment counsel Joshua Davis, and Ellen Messing. These seasoned advocates engaged in a spirited dialogue as to the impact of several noteworthy state and federal decisions spanning 2015 and early 2016.

 

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BELFORT PUBLISHES ARTICLE ON UNPLUGGING

Posted on: May 3rd, 2016 by admin

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Bennett & Belfort, P.C. partner, David E. Belfort, recently published an article in the Massachusetts Bar Association’s Lawyer’s Journal entitled “The Value of Disconnecting.” 

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 The piece, which ran in the monthly’s March/April Section Review, focuses on the importance of uninterrupted vacations and down time in the age of boundless smart-phone technology and a seemingly endless stream of professional emails.  Mr. Belfort discusses findings by Human Resource professionals indicating that time away from work is an essential component in the promotion of worker productivity – and he suggests the same principles apply to attorneys.  

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Mr. Belfort goes on to share some of his workplace strategies to allow for proper, relaxing breaks while away from the office in suggesting that we all ‘work’ to make time away from the office an authentic “break.”