Legal Blog

Compensation and Compliance Matters: New Minimum Wage, Overtime Orders Could Haunt Lenders

Bank Manager Reimbursements How will these affect you? Immediately there is no effect on lenders, but down the road it’s possible. The two executive orders the president signed have very different implications. The first pertaining to a minimum wage hike only applies to federal contractors executing agreements with the government. Hence, most lenders are not impacted. The second order the president signed pertains to minimum wage. This order requires the Department of Labor to develop new standards for determining the level of compensation needed for certain employees to maintain exempt status. Currently persons subject to the executive, professional and administrative exemptions, need to maintain a salary of at least $455/week in addition to having exempt responsibilities to avoid overtime and time-keeping requirements of the Fair Labor Standards Act. Click here to read the rest of the article.