As most of you will recall, in 2016, under the Obama administration, the Department of Labor ("DOL") increased the salary level required for exemption under the Fair Labor Standards Act ("FLSA") from $23,660 to $47,476. However, the Obama DOL rule was invalidated by federal courts (because the salary level was so high as to supplant the duties analysis in the FLSA exemption criteria). The final DOL rule released yesterday, increases the salary amount required for exemption under most of the FLSA exemptions -- but by substantially less than the Obama rule provided.
As we open the book on Calendar 2018, there are various concerns for Employers. Obviously, the recent passage of a major overhaul of the United States Tax Code will present many opportunities to Employers, both from an accounting perspective (alleged tax savings) and also from a perspective of handling payroll systems. Obviously, this will be a continuing concern in 2018, but there are three (3) other areas that may "bode ill" for Employers.