Last week, the U.S. Department of Labor issued its Final Rule regarding the salary thresholds that apply to certain exempt white-collar employees. The new salary thresholds will take effect on January 1. The DOL received more than 116,000 comments about its proposed regulations, which were issued in March. However, many of the comments were “form” comments with the same content.

KEY PROVISIONS
Standard salary levels (Executive, Administrative, and some Professional exemptions)
The salary threshold levels for these exemptions were set at the 20th percentile of earnings of full-time salaried workers in the lowest-wage region (the South) or in the retail industry nationally.

For workers to be exempt from the overtime requirements of the Fair Labor Standards Act based on the executive, administrative, or some professional exemptions, they must be paid at least the amounts indicated below as of January 1:

• $684 per week, or $35,568 per year. (The current threshold level is $455 per week, or $23,660 per year.)

Because the DOL used the most recent salary data available at the time it drafted the Final Rule (from June 2019), there will be no updating in January 2020 to adjust for inflation.

Employers may count non-discretionary bonuses, incentives, and commissions toward up to 10 percent of the standard salary level as long as the employer pays those amounts at least annually.

Highly compensated employees
The total annual compensation level for the “highly compensated employee” exemption will be set at the 80th percentile of earnings of full-time salaried workers nationally. Under the proposed rule, the exemption would have been set at the 90th percentile.
For workers to be exempt from the FLSA overtime requirements based on their status as highly compensated employees, they must be paid at least the amounts indicated below as of January 1:

• $107,432 per year, of which at least $684 per week must be paid on a salary or fee basis. The remaining minimum annual compensation may include commissions, non-discretionary bonuses and other non-discretionary compensation. (The current threshold for highly compensated employees is $100,000 a year.)

Special threshold rates
The final regulations also include special rates that apply in certain circumstances:

• $455 per week for workers in Puerto Rico, the Virgin Islands, Guam, and the Commonwealth of the Northern Mariana Islands.
• $380 per week for workers in American Samoa.
• $1043 per week for workers in the motion picture industry.

The final regulations do not make any changes to the “duties tests,” nor do they include any provision for automatic “adjustment” of the salary thresholds in the future. Regarding the latter, the DOL has said that it will periodically revisit the minimum salary and compensation levels through future notice-and-comment rulemaking.

According to DOL estimates, 1.2 million employees who are currently exempt under the executive, administrative, and professional exemptions will, without some intervening action by their employers, become eligible in 2020 for overtime under these new salary levels. Absent employer action, approximately 101,800 employees who are currently exempt as highly compensated employees are expected to become eligible for overtime in 2020.

ANALYSIS
The most significant differences between the new final regulations and the version issued in 2016 by the Obama Administration (which was invalidated by a court ruling), are that the current increases are more modest, and that there is no mechanism included for automatic adjustments in the future.

Some employee advocacy groups have publicly said that they plan to challenge the new regulations in the courts. Even if their challenges are successful, the effect would almost surely be to leave in place the current (significantly lower) threshold levels, which were set in 2004. Thus, the logic behind a legal challenge by worker advocates is not readily apparent.

Assuming, as we must, that the new regulations will take effect on January 1, employers will need to quickly reassess the exempt classifications of employees who are paid less than the levels mandated in the new regulations. Employers will have to evaluate whether to increase the salaries of those employees to retain the exempt classification, or whether to reclassify the employees as non-exempt (eligible for overtime).
While that reassessment is taking place, it is also an excellent time for employers to evaluate compliance with the job duties requirements applicable to the white-collar exemptions. Although the new regulations did not change the “duties tests,” job duties nonetheless remain requirements that must be satisfied in addition to the salary and compensation requirements.

Constangy, Brooks, Smith & Prophete, LLP
Constangy, Brooks, Smith & Prophete offers a wider lens on workplace law. We have counseled employers exclusively since 1946. With offices in 15 states, we are one of the largest labor and employment law practices in the U.S. Constangy has been named as a top firm for women and minorities by organizations including Law360, the National Law Journal and Vault.com. Many of our more than 190 attorneys have been recognized by leading authorities such as Chambers & Partners, Best Lawyers in America® and Martindale Hubbell. Find out more about us online at www.constangy.com or follow us on Twitter @ConstangyLaw. 

You are cordially invited to join the Nassau County Chamber of Commerce for an evening of networking with Federal, State and Local Elected Officials and staff at the 2019 Public Officials Appreciation Reception, scheduled for Tuesday, October 29, 2019 from 5:00-7:00 PM at the Amelia Island Plantation Community Association - Walker's Landing. 

The Chamber's Annual Public Officials Appreciation Reception brings elected officials together with Nassau County business and community leaders in a relaxed social atmosphere. This event is the Chamber's way of thanking elected officials for their hard work and assisting our county, region and state throughout the year. Advanced payment and registration are required in order to attend this event.

​CLICK HERE for more information or call (904) 261-3248.

The City of Fernandina Beach announces that Stephen Beckman has been appointed as the City's Building Official. Mr. Beckman began his duties on Monday, August 19. 

Originally from Cleveland, Ohio, Mr. Beckman's experience includes working as a general contractor, and in various capacities in the City of Naples' building department. He was the Building Official for the City of Cape Coral before moving to Honduras for one year to manage a scuba diving resort. 

Ready to move back to America to be closer to family (three children and one granddaughter), Mr. Beckman was excited to see an opening with the City. He and his wife visited Fernandina Beach for a conference about three years ago and fell in love with the "small, historic community". They look forward to exploring the outdoors, fishing, cycling and diving at the beach!

Join us for the next installation of our 'Coffee with Your Commissioner' program on Thursday, August 29, 2019 from 8:30-9:30 A.M. at the Nassau County Chamber of Commerce, 961687 Gateway Blvd., Suite 101-G, Fernandina Beach, Florida. 

This month's guest is City Commissioner Mike Lednovich. For the past 20 years, Commissioner Lednovich worked as a business consultant and helped companies and organizations like Disney World, the Philadelphia School District and Pratt & Whitney succeed and achieve their goals. As a relative newcomer to Fernandina Beach, Commissioner Lednovich feels that he has a unique perspective on the needs on the City, allowing him to take a fresh look at the community without any preconceived biases. His priorities include working to protect our beaches, tree canopies, wetlands, Historic District, residential neighborhoods and local businesses that collectively make Fernandina Beach so special. 

Meetings with individual Commissioners are scheduled periodically throughout the year. The program presents Chamber of Commerce members with the opportunity to discuss topics in an informal and relaxed atmosphere. There is no agenda for these meetings. Business leaders will have an opportunity to share their thoughts and concerns, while simultaneously giving the Commissioners a chance to learn more about businesses within their district. 

'Coffee with Your Commissioner' is free for Chamber members are $25.00 for prospective members. Advanced payment and registration are always preferred. For more information, CLICK HERE or call (904) 261-3248. 

Join us for the next installation of our 'Coffee with Your Commissioner' program on Thursday, July 25, 2019 from 8:30-9:30 A.M. at the Nassau County Chamber of Commerce, 961687 Gateway Blvd., Suite 101-G, Fernandina Beach, Florida. 

This month's guest is Nassau County Commissioner Daniel Leeper. Commissioner Leeper is a native of Amelia Island, where he and his family continue to reside and give back to the community. He spends his free time enjoying the outdoors, running, biking, kayaking and fishing. Commissioner Leeper is very active in the community, serving on numerous boards and committees in the City and County and has worked in public service for more than 34 years. He is currently serving his second four-year term as a Nassau County Commissioner for District 1 on Amelia Island. 

Meetings with individual Commissioners are scheduled periodically throughout the year. The program presents Chamber of Commerce members with the opportunity to discuss topics in an informal and relaxed atmosphere. There is no agenda for these meetings. Business leaders will have an opportunity to share their thoughts and concerns, while simultaneously giving the Commissioners a chance to learn more about businesses within their district. 

'Coffee with Your Commissioner' is free for Chamber members and $25.00 for prospective members. Advanced payment and registration are always preferred. For more information, CLICK HERE or call (904) 261-3248. 

The 2019 Back-to-School Sales Tax Holiday was passed by the Florida Legislature and signed into law by Governor Ron DeSantis. This sales tax holiday begins Friday, August 2, 2019, and runs through Tuesday, August 6, 2019. 

During this sales tax holiday period, qualifying items will be exempt from tax including: certain school supplies selling for $15 or less per item; and clothing, footwear, and certain accessories selling for $60 or less per item; and computers and certain accessories selling for $1,000 or less per item, when purchased for noncommercial or personal use. 

For more information and a list of qualifying items, please review the Department of Revenue's Tax Information Publication (TIP) below. 

County Manager, Mike Mullen, and Office of Management & Budget Director, Megan Diehl, will be holding Budget Workshops to discuss department and not-for-profit budget requests for Fiscal Year 2019/2020. These Workshops will be held on:
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• Monday, June 17, 2019 from 5:30-7:30 p.m.
• Thursday, June 20, 2019 from 9 a.m. - 4:00 p.m.
• Tuesday, June 25, 2019 from 5:30-7:30 p.m.

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All meetings will be held in the Commission Chambers located at 96135 Nassau Place, Yulee, Florida 32097. The public is invited to attend, ask questions, and provide input. 

A complete schedule featuring individual times for each department or non-profit budget discussion will follow. 

If you have any questions, please contact the County Manager's Office at (904) 530-6010.

Individuals with disabilities needing a reasonable accommodation to participate in this proceeding should contact the Office of the County Manager's Office at (904) 530-6010, or, if hearing impaired, Florida Relay Service at 1-800-955-8770 (v) or 1-800-955-8771 (TDD).