The Fair Side of the Fair Labor Standards Act

By: Jennifer Sanford, Director of Strategic Marketing 

In May 2016, the Department of Labor amended the Fair Labor Standards Act regulations to increase the minimum salary requirement for exempt employees from $455/week to $913/week. These regulations were put into effect on December 1, 2016.

Although the State of Texas is challenging these regulations, most businesses have chosen to remain compliant by raising base salaries or converting the payroll status for exempt employees whose salaries were below the minimum salary requirement to “nonexempt” or “hourly.” This has caused a flurry of administrative activity, but dealers can capitalize on the positive side of these regulations.

This has caused a flurry of administrative activity, but dealers can capitalize on the positive side of these regulations.

So, what are those positive side effects?

1) Organizational Alignment
Do you ever wonder if you have all the right people in the right jobs? This regulation gives you the opportunity to evaluate roles and ensure that your team is optimized for success.

2) Work-Life Balance
Take advantage of this opportunity to celebrate a positive work-life balance with the employees at your dealership. Encourage your teams to work hard, be efficient, and enjoy the non-working hours at home with family and friends.

3) Productivity Measurements
Now is the time to implement success measurements and metrics into your teams. Once you have the right people in the right jobs, you can monitor performance – reward success and be a better coach. With time as a constraint, your dealership’s management team can help your sales and service staff stay motivated to get everything done before they go home each day.

Learn more about Dominion’s ACCESS DMS to help you manage your dealership’s day to day operations. Call 877.421.1040.

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