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Welcome to the HR Blog 

Find the answers to your most pressing human resources questions from the HR experts at Sage Solutions Group.

6 Key HR Issues for Small Businesses

  Most Common HR Mistakes for Small Businesses:   #1    FAILURE TO COMPLY WITH MIOSHA Although most reporting requirements through MIOSHA start with 11 or more employees, a small business is required to...

6 Tips to Help Improve Your Cybersecurity

We all know the importance of cybersecurity these days, but the phishing attempts and other scams have gotten increasingly hard to detect.  Cell phone numbers are even being targeted where individuals are receiving text messages that appear to...

A Time To Celebrate. But!

Michigan will open on June 22nd to full capacity and the mask mandate is no longer required for residents.  YES!  It has been a long hard road for most all businesses.  Time to rip off that mask and celebrate?  Not so...

How to Lose Thousands of Dollars in Just One Day

The year 2021 is already proving to be a complex one for business owners.  There’s extended closures, new laws and rules to consider, PPP round two, and last but certainly not least, extremely sophisticated hackers looking to steal your...

COVID-19 Pandemic: Return To Work Plan

8 Tips for Bringing Your Employees Back to Work Safely and Successfully Now that more and more businesses are re-opening, it's important to understand how to safely bring your employees back to work. Here are 8 tips to keep in...

The New Form I- 9- What You Need to Know

  As of January 31, 2020 the Department of Homeland Security- U.S. Citizenship and Immigration Services announced the release of the new version of Form I-9, Employment Eligibility Verification. While this form is ready for...

What’s the 4-1-1 on the 2020 W-4?

Recently the IRS released the official W-4 that will be used starting January 1, 2020. The new form “uses the same underlying information as the old design, but it replaces complicated worksheets with more straightforward questions that make...

FORM I-9 IS ABOUT TO EXPIRE: WHAT SHOULD I DO?

As an employer or human resource representative, you probably use the USCIS Form I-9 constantly as you hire new employees.  Even though this is a familiar form, you may not have looked at the expiration date in a while. Well…if you...

6 REASONS TO HAVE AN EMPLOYEE ASSISTANCE PROGRAM

We live in a time where stress is all around us.  Stress at work can come in the form of deadlines, heavy workloads and work conflicts.  Stress at home may be the result of relationship issues, health challenges, packed kid schedules or...

4 Ways Flexibility in the Workplace Really Works!

  With 2019 upon us, many businesses may be evaluating their business and human resource practices to prepare for what is to come in the year ahead.   As advancements in technology continue to give employees the opportunity to...

Cleaning Up Your Digital Footprint

What is a digital footprint, you ask?  It is the unique set of traceable digital activities, actions, contributions and communications that are manifested on the Internet or on digital devices. One aspect of your digital...

Employment News- Michigan Ballot 2018

Michigan businesses need to be aware that there are two initiatives being considered for the 2018 Michigan Ballot that could have significant implications for small businesses. The Michigan Paid Sick Leave Initiative (2018) and Michigan...

Recruiting in 2018

Finding the right talent and efficiently filling positions is harder today than ever before.  There are many factors that make this statement true. First, according to the New York Times, the unemployment rate in the US hit a new low...

Marijuana Use in the Workplace

There is no doubt that recreational use of marijuana is on the rise. For example, it’s not uncommon to stop at stoplight, only to be hit by the smell of marijuana wafting into your car. Or when was the last time you went out to enjoy a...

Sage Solutions Group Airs on Michigan Entrepreneur TV

Sherri McDaniel, CEO at Sage Solutions Group completed her second interview in a three-part series focused on Human Resources with Tara Kachaturoff of Michigan Entrepreneur TV. This second interview will air on Tuesday, January 16 at 11:00 am and...

OSHA Required Reporting Deadline- December 15

December 15th is fast approaching and if that date does not mean anything to you, you may need to listen up. OSHA made changes to the required reporting of work related illness and injury for many employers. This enhanced tracking method is...

How Outsourcing HR Services Can Help Your Business

Human Resources encompasses a wide swath of the corporate landscape, and it seems that every firm has its own definition of the department's duties and responsibilities. Many efficiency experts believe that recruitment and employee retention are...

Harassment Policies Need to be Reviewed

It is nearly impossible to turn on any news channel or social media news feed without hearing the latest in the saga of celebrity sexual harassment claims. With this type of attention to this serious topic, it is a reminder to every organization...

Fall is a Great Time to Review Your HR Compliance

As the weather begins to change and the fall colors are bright, it is time to put the fun of summer behind us and make a plan to review our HR files to be sure they are up to date and in compliance. An annual audit of company handbooks, policies...

Employee Handbooks

The National Labor Relations Board (NLRB) has increased its attention and focus on employee handbooks recently. While most think of the NLRB in terms of unionized employers, its...

What Does An HR Audit Measure?

The greatest asset of any business is its employee. An effective HR department provides stability and structure and is an integral part of both small and large companies. The objective of the HR or Human Resource office is to ensure businesses and...

When Should I Hire An HR Consultant?

When you were a kid, you dreamed about becoming an entrepreneur someday. Two years ago, you turned this dream into a reality. Sitting at the desk in your office, you realize how quickly your business has blossomed. You sense some changes need to...

Posters 101

Do you find complying with labor posters to be a real maze of red tape? As many employers have found, determining the correct posters requires a fair amount of research. Not only do you have to ensure you have the correct federal posters but you...

Changes… Changes… Change

The year 2016 has been a big year for change in labor laws. Poster requirements have changed … Effective August 1, 2016 the Department of Labor (DOL) revised the Federal Minimum Wage Poster to remove specific civil monetary penalty amounts...

Recruitment Tips…

The economy is doing better…. That’s a good thing…. Right? It is, unless you’re a recruiter. Because in good economic conditions, there are real challenges to attracting talent. Some new businesses have had to delay opening...

Time to Audit…

Winter is just around the corner. Daylight savings time is coming soon. Many of us will arrive to work in the dark and leave in the dark. This brings many new hazards into the workplace. It is time to look around and see the trip-fall hazards...

Insurance, with benefits?

Many small businesses purchase quite a lot of insurance; from workers’ compensation to directors and officers to general liability. While the main benefits of insurance are obvious, there are often additional benefits that are rarely take...

NAVIGATING THE DEPARTMENT OF LABOR’S UPDATED MINIMUM WAGE FOR SALARIED EMPLOYEES.

Michigan Human Resource Consulting Blog | Sage Solutions Group - shutterstock_2180481937(1)

 

 

 

 

 

 

NAVIGATING THE DEPARTMENT OF LABOR’S UPDATED MINIMUM WAGE FOR SALARIED EMPLOYEES.

July 1, 2024, marks a milestone as the Department of Labor (DOL) implements a new salaried exempt minimum wage. This shift requires careful consideration from both employers and employees alike. While preparation is key, it's essential to approach this transition with both strategic planning and caution. In this blog, we'll explore the nuances of the DOL's new regulations, offer insights into effective planning strategies, and underscore the importance of navigating this change thoughtfully.

The DOL's updated regulations introduced revised thresholds for employees to qualify as exempt from overtime pay under the Fair Labor Standards Act (FLSA). Key components of these updates include:

  • The minimum annual salary threshold for exempt employees rises to $43,888 on July 1, 2024.

  • Alongside the salary threshold, employees must meet specific duties tests to qualify for exempt status, evaluating the nature of their job responsibilities.

To effectively prepare for the new regulations, employers should consider the following strategies:

COMPLIANCE ASSESSMENT

This entails a review of your workforce to identify employees falling below the new salary threshold.  Keep in mind that you need to review the category each employee falls into to ensure you are evaluating against the correct minimum wage threshold. Now is also a great time to evaluate their roles and responsibilities to determine eligibility for exempt status.

FINANCIAL ANALYSIS:

Assess the financial implications of salary adjustments versus reclassification. Consider budget constraints and operational costs. Keep in mind that as wages go up so do other costs like workers’ compensation and many insurances/benefits.

COMPENSATION REVIEW:

While completing a financial analysis, consider looking at your overall compensation structure, as this minimum wage increase could necessitate changes to your compensation plan.

COMMUNICATION PLAN:

Develop a clear communication strategy to inform employees about upcoming changes, address concerns and questions transparently. Hold on to this plan until you are positive there will be no legal challenges.

TRAINING AND EDUCATION:

Provide thorough training for HR and management teams on the new regulations.  While proactive planning is encouraged, caution should be exercised to avoid premature implementation!  Here are some of the pitfalls of prematurely implementing changes:

  • Given the evolving landscape of labor regulations, there is a great chance that these rules will be met with legal challenges, delays, stays, and changes.  This is exactly what happened in 2016-2017 when the DOL proposed similar changes.  Employers who made the changes or announcements too early were forced with difficult decisions resulting in some employers pulling back announced increases.  This can result in serious morale and productivity issues. 

  • Premature announcements when the leadership is unsure themselves may also cause confusion and anxiety among employees.

In addition to the announced July 1 changes, there are anticipated adjustments for January 2025 as well.  The DOL plans further adjustments effective January 1, 2025, with the minimum salary threshold increasing to $58,656 per year. This staged approach should be carefully reviewed as you prepare for the new regulations. 

The DOL's new regulations signal a significant shift in labor standards, demanding careful planning and execution. By navigating this transition with foresight and caution, employers can ensure compliance while fostering a positive workplace environment amidst evolving regulatory landscapes. In short, as employers, we should be prepared for these changes and adapt policies accordingly.  Sage Solutions Group is here to support you in reviewing your options related to this new regulation.

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