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Showing posts from May, 2016

Final DOL Rule and HR Big Change: The New Exempt Employee

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That's it! All done and decided: the New Exempt Employee Rule is Out!

It is out, giving a little sense of relief because the wait is over and clarifications are made. Relief also for all because the anticipated yearly threshold has been lowered to less than $50,000. This overhaul will affect over 4.3 million current executives according to The White House. As expected, reactions vary and opinions are conflicted, with negative reactions from several in the business community, particularly the retail world. Indeed, it is a dramatic change that somehow misaligns (or aligns? - depending on interpretation -) the US pay philosophy to the European approach, where "cadres" - roughly the equivalent of executives and professionals -  are by definition not entitled to overtime (OT) pay, while pay increase linked to inflation is granted in one way or another. This marks a huge cultural transition among US workforce. Although it is a rough passage for many, continuum is observed in s…