SHRM to Hold Seminar on Impact of New Regulations for Exempt Employees
SAN JUAN – The impact of new federal regulations for exempt employees in Puerto Rico, which goes into effect in December, will be the main topic of discussion at a seminar offered by the Society for Human Resource Management (SHRM), Puerto Rico chapter.
The event will be held Thursday, June 16, at 9 a.m., in Medtronic’s main building in Villalba.
The seminar will be conducted by attorney Carlos Paula, an expert in labor law.
The Department of Labor issued a final overtime rule May 18 and included an exempt employee threshold of $47,476. The impact of the increase will escalate in coming years; the rule included a hike every three years in the minimum salary for exempt employees. It also raised the salary threshold level for the highly compensated employees exemption from $100,000 to $134,004. Like the standard salary level for the white-collar exemptions, the highly compensated employees exemption salary level will increase every three years, beginning Jan. 1, 2020.
“With the new federal regulation, it is vital that employers begin to prepare a reorganization plan and budget for salaries that will be required for employees who perform these types of duties [executive, administrative, or professional],” said Paula, while noting that the seminar will share alternatives and commercial strategies that will help employers cope with the economic impact of the new regulation.
Among the alternatives and strategies for coping successfully with the new regulations, Paula said it is crucial to analyze the list of exempt employees and identify those who are currently paid more than $23,660, but less than $47,476 a year.
He also indicated it is necessary to examine what the cost of increasing the salaries of exempt employees would be to comply with the minimum compensation required and budget for the increase.
He suggests, among other alternatives, a comparison of the salary increase required to reclassify exempt employees as non-exempt and pay them extra compensation for overtime and for any violation of their meal times.