FLSA Salary Rule Change: The Impact of the 5th Circuit’s Ruling - Mission to Grow: A Small Business Guide to Cash, Compliance, and the War for Talent - Episode #127
What are the key strategies employers can adopt to navigate employee classifications effectively while ensuring compliance with the ever-changing FLSA minimum salary rules and fostering trust?
This week on Mission to Grow, Mike Vannoy engages in an in-depth discussion with Mary Simmons and Brian Shenker on the significant implications of the 5th Circuit's ruling on the Fair Labor Standards Act (FLSA) minimum salary rule. Mike, Mary, and Brian dissect the complexities surrounding the recent court decision that vacated the Department of Labor’s new rule, reverting it back to previous levels. Dive into this episode to understand the legal and practical ramifications for employers, strategies for handling employee classifications, maintaining compliance, and the importance of thorough job audits. It’s a crucial episode for any business owner navigating the ever-changing landscape of employment law. Don’t miss this essential conversation!
Takeaways:
- Schedule annual audits conducted by external experts to ensure compliance with FLSA and state regulations. This will help identify and correct any misclassifications or compliance issues.
- Regularly review and update job descriptions to ensure they accurately reflect the duties of each role. This helps in defending exempt and non-exempt classifications.
- Stay updated on federal, state, and local labor law changes. When changes occur, communicate clearly and transparently with your employees to maintain trust and morale.
- Include a budget line for HR and legal compliance services in your annual planning. This should be viewed as essential as tax preparation services due to the complexities of labor law.
- Utilize free resources like the Department of Labor website for guidelines, or professional organizations. Dedicate time weekly to keep updated with the latest regulations and compliance tips.
- Create a clear communication strategy for how to talk about salary and classification changes with employees. This can prevent morale issues and potential legal challenges.
- Use the process of updating job descriptions as an opportunity to identify potential organizational changes or succession planning, which can enhance overall business growth and efficiency.
Quote of the Show:
- "When things are not communicated well to employees, even if it was arguably legal, they might go to an attorney because they're not trusting what the employer does." - Brian Shenker
Links:
- Brian’s LinkedIn: https://www.linkedin.com/in/brian-shenker-53708712/
- Brian’s Company Website: http://www.jacksonlewis.com
- Mary’s LinkedIn: https://www.linkedin.com/in/marysimmonshrconsultant/
- Asure Software: https://www.asuresoftware.com/
Ways to Tune In:
- Spotify: https://open.spotify.com/show/2XThTdn7YC1lkAm0PgZUkj
- Apple Podcasts: https://podcasts.apple.com/us/podcast/mission-to-grow-a-small-business-guide-to-cash-compliance-and-the-war-for-talent/id1725890976
- Amazon Music: https://music.amazon.com/podcasts/328dddd0-3c4f-4b07-a0d3-13bdcb418486/mission-to-grow-a-small-business-guide-to-cash-compliance-and-the-war-for-talent?refMarker=null
- Audible: https://www.audible.com/pd/Mission-to-Grow-A-Small-Business-Guide-to-Cash-Compliance-and-the-War-for-Talent-Podcast/B0CS71KQFM?qid=1706208857&sr=1-1&ref_pageloadid=not_applicable&ref=a_search_c3_lProduct_1_1&pf_rd_p=83218cca-c308-412f-bfcf-90198b687a2f&pf_rd_r=A1ME8MBECSVZ6K4D7CNT&pageLoadId=QBtg12mqKsuZPLGY&creativeId=0d6f6720-f41c-457e-a42b-8c8dceb62f2c
- Podchaser: https://www.podchaser.com/podcasts/mission-to-grow-a-small-busine-5591006
Creators and Guests
Host
Mike Vannoy
Mike is a digital-first marketing executive with 25 years dedicated to helping HR companies thrive. As a board member of an AI software company and Chief Marketing Officer at Asure, he's been at the forefront of AI, HR compliance trends, and the changing demographics that shape today's marketplace. Under his leadership at Sales Engine Media, the company predominantly focused on the payroll, HR, and benefits industries, earning multiple spots on the Inc5000 list. Actively involved in multiple small businesses, Mike is a lifelong entrepreneur adept at navigating the changing workforce dynamics. He has held multiple executive roles at industry-leading HR firms, showcasing his expertise and leadership in the sector.
