REMINDER – MEMORIAL DAY OFFICE HOURS
Our offices will be closed on Monday, May 25, in observance of Memorial Day.
On this day, we honor and remember the service members who gave their lives in service to our country.
US DEPARTMENT OF LABOR – WHITE COLLAR SALARY EXEMPTION THRESHOLD CLARIFIED
On May 15, the U.S. Department of Labor issued a final rule confirming that the 2019 salary thresholds for the Fair Labor Standards Act’s white-collar exemptions remain in effect.
The rule removes language from the DOL’s 2024 rule that would have raised the minimum salary levels for the executive, administrative, professional, outside sales, and computer employee exemptions. Two federal district courts invalidated the 2024 rule in late 2024.
Current salary thresholds remain:
- $684 per week ($35,568 annually) for standard white-collar exemptions
- $107,432 annually for highly compensated employees, including at least $684 per week paid on a salary basis
SHARED WORK PROGRAMS – AN ALTERNATIVE TO LAYOFFS
Employers looking for alternatives to layoffs may want to consider a Short-Time Compensation (STC), or Work Share, program.
These programs are designed for employers facing a temporary reduction in available work. Instead of laying off employees, an employer can reduce hours for a group of workers, and those employees may receive a portion of their unemployment benefits to help make up for the lost pay.
By spreading reduced hours across a group, employers may be able to keep valued employees on staff and avoid permanent layoffs.
To use a Work Share program, the employer must submit a plan to the appropriate state workforce agency for approval. There are currently 30 states that offer some type of Work Share program for employers.
The requirements for a Work Share program vary by state but generally:
- The reduction in hours must fall within the state’s parameters – usually at least 10-20% reduction but no more that 40-60%
- The programs are administered by the state and require weekly reporting
- Most plans can be put into place for a 6-12 month period
For more information about Workforce Reductions, please visit https://thomas-and-company.com/workforce-reductions/ and download our guide today.
