First, the federal Department of Labor (DOL) recently finalized an increase to the minimum required salary for employees designated as exempt from overtime pay from $23,660 to $35,568. The new minimum required salary takes effect on January 1, 2020. It is advisable for SSA members to review their payroll structure now to plan for any changes that will be necessary as of January 1, 2020. When the changes take effect, salaried employees who make less than $35,568 must either receive a salary increase or be converted to an overtime-eligible employee.
Moreover, the current and upcoming federal overtime regulations allow for employees to be designated as exempt from overtime pay only if their job duties fall into one of the exemptions. Both small and large operators have been sued based on allegations that their employees were improperly designated as exempt from overtime pay.
Therefore, storage operators are strongly urged to review the OVERTIME MEMO to better understand the exemptions from overtime pay and to determine whether their employees are accurately designated as exempt from overtime pay. If the employee’s job duties do not fall into one of the exemptions, federal law requires that the employer pay the employee overtime for any hours worked in excess of 40 hours per workweek. The memo also discusses the proposed change to the minimum required salary and tips to prepare for the change.
Storage operators must keep in mind that federal law sets minimum requirements for employers. State and local employment laws often impose stricter requirements that employers must meet.
Second, the Equal Employment Opportunity Commission (EEOC) is requiring employers with 100 or more employees to provide additional compensation data by September 30, 2019.
The EEOC has for years required covered employers to submit information regarding employee sex, race, and ethnicity to assist with its enforcement efforts. During the Obama Administration, the EEOC determined that additional information was needed from employers to combat wage discrimination.
As a result, employers will now have to provide pay ranges for employees based on “box one” of W-2 forms and must report hours worked by employees. Information must be provided regarding ethnicity, gender, job category, and sex of each individual employee within the pay ranges.
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Finally, the Self Storage Association is expanding its legal offerings for members. Keep an eye on the blog, SSA Magazine, and SSA Magazine weekly email newsletter for more information. Please email Joe Doherty or Daniel Bryant if you have a topic you would like us to address.