Developments - September 2016 - 56

HOA HOAs and the New Overtime Rules BY STEVE BRETTHOLTZ, CPA O n May 18, 2016, the DOL (Department of Labor) released a final rule that radically increases the thresholds for overtime rules, expanding the number of employees eligible for overtime pay. Under the FLSA (Fair Labor Standards Act), employees who work more than 40 hours in a week are entitled to overtime pay, unless they meet the requirements of certain wage and duties tests. The new rule doubles the minimum salary threshold from $455 per week to $913 per week (which amounts to $23,660 annually to $46,476 annually) and raises the exemption level for those considered to be "highly compensated employees" from $100,000 to $134,004 annual salary. The DOL rule may impact major business decisions like hiring, expansion, offering new benefits or adding more flexible work arrangements for employees. Association Boards of Directors and their management will have until December 1, 2016, to make determinations on which employees to reclassify as exempt or nonexempt and how they will implement those changes. 56 - Developments arda.org The New Rule: What It Requires * The new rule increases the minimum salary requirement to $47,476 from $23,660 per year for salaried-exempt employees. * The new rule makes changes to the administrative, executive, and professional exemptions only, but it does not change the duties test for each of these exemptions. * The new rule also increases the minimum salary for highly compensated executives to $130,004 per year from $ 100,000. * The last change to the minimum salary requirement was made in 2004, and at that time the minimum salary was increased to $455 per week from $250. * The new rule provides for automatic increases every three years to the minimum salary amount. The first increase will be on January 1, 2020. The minimum salary amount will be adjusted to be in line with the 40th percentile of full-time salaried workers in the lowest Census region, estimated to be $51,168 in 2020. In addition, the minimum salary for highly compensated employees will increase as well. Let's dive into this rule and answer some key questions from an HOA perspective. What does this mean to an HOA? So, what does this meant to a homeowners association? Well, it's possible that beginning December 1, 2016, their employees who were considered exempt and not subject to overtime rules could be reclassified as non-exempt and entitled to overtime if their salary was less than $913 per week (which amounts to $47,476 annually). If an association employs salaried, fulltime workers who are paid less than $913 per week, they will need to decide how to respond to these new rules. Some options: * Keep salaries the same and eliminate or reduce overtime. Be sure to monitor activity and hours in order to limit overtime. * Raise salaries to the new minimum, enabling an association to require unpaid overtime of qualified employees. * Keep salaries the same and pay overtime. This is financially beneficial if overtime is http://www.arda.org

Table of Contents for the Digital Edition of Developments - September 2016

UP FRONT
FIRST WORD
AROUND THE INDUSTRY
TRUSTEE TALK
INTERNATIONAL BRIEF
RESEARCH
MEMBER MATTERS
SPECIAL HR SECTION: PART II
CUSTOMER CARE
CREATIVE RESALE STRATEGIES
FRONTLINE TACTICS
RENOVATIONS: “IF MONEY WERE NO ISSUE?”
WHERE DO THE DOLLARS GO?
HOAS AND THE NEW OVERTIME RULES
CAUTION ABOUT YOUR FINANCE OPTIONS
FOCUS ON: REPUTATION MANAGEMENT
FACES FROM THE FRONTLINES
MEMBERSHIP UPDATES
Developments - September 2016 - 1
Developments - September 2016 - Cover1
Developments - September 2016 - Cover2
Developments - September 2016 - 1
Developments - September 2016 - 2
Developments - September 2016 - 3
Developments - September 2016 - 4
Developments - September 2016 - 5
Developments - September 2016 - UP FRONT
Developments - September 2016 - 7
Developments - September 2016 - FIRST WORD
Developments - September 2016 - 9
Developments - September 2016 - AROUND THE INDUSTRY
Developments - September 2016 - 11
Developments - September 2016 - 12
Developments - September 2016 - 13
Developments - September 2016 - 14
Developments - September 2016 - 15
Developments - September 2016 - 16
Developments - September 2016 - 17
Developments - September 2016 - 18
Developments - September 2016 - 19
Developments - September 2016 - TRUSTEE TALK
Developments - September 2016 - 21
Developments - September 2016 - INTERNATIONAL BRIEF
Developments - September 2016 - 23
Developments - September 2016 - RESEARCH
Developments - September 2016 - 25
Developments - September 2016 - 26
Developments - September 2016 - 27
Developments - September 2016 - MEMBER MATTERS
Developments - September 2016 - 29
Developments - September 2016 - SPECIAL HR SECTION: PART II
Developments - September 2016 - 31
Developments - September 2016 - 32
Developments - September 2016 - 33
Developments - September 2016 - CUSTOMER CARE
Developments - September 2016 - 35
Developments - September 2016 - 36
Developments - September 2016 - 37
Developments - September 2016 - CREATIVE RESALE STRATEGIES
Developments - September 2016 - 39
Developments - September 2016 - 40
Developments - September 2016 - 41
Developments - September 2016 - FRONTLINE TACTICS
Developments - September 2016 - 43
Developments - September 2016 - 44
Developments - September 2016 - 45
Developments - September 2016 - 46
Developments - September 2016 - 47
Developments - September 2016 - RENOVATIONS: “IF MONEY WERE NO ISSUE?”
Developments - September 2016 - 49
Developments - September 2016 - 50
Developments - September 2016 - 51
Developments - September 2016 - WHERE DO THE DOLLARS GO?
Developments - September 2016 - 53
Developments - September 2016 - 54
Developments - September 2016 - 55
Developments - September 2016 - HOAS AND THE NEW OVERTIME RULES
Developments - September 2016 - 57
Developments - September 2016 - CAUTION ABOUT YOUR FINANCE OPTIONS
Developments - September 2016 - 59
Developments - September 2016 - FOCUS ON: REPUTATION MANAGEMENT
Developments - September 2016 - 61
Developments - September 2016 - FACES FROM THE FRONTLINES
Developments - September 2016 - 63
Developments - September 2016 - MEMBERSHIP UPDATES
Developments - September 2016 - 65
Developments - September 2016 - 66
Developments - September 2016 - 67
Developments - September 2016 - 68
Developments - September 2016 - 69
Developments - September 2016 - 70
Developments - September 2016 - 71
Developments - September 2016 - 72
Developments - September 2016 - Cover3
Developments - September 2016 - Cover4
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