Earlier this year, the Department of Labor revised the minimum salary for most exempt employees. Employees exempt under the “executive,” “administrative,” or “professional” (white collar) exemptions must make a minimum salary of $47,476 or $913 per week (increased from the current minimum salary of $23,660 or $455 per week). Those employees exempt under the “highly compensated employee” exemption must make a minimum salary of $134,004 (increased from the current minimum salary of $100,000). It was also determined that non-discretionary bonuses and commissions can satisfy up to 10% of the new salary levels.

Unless litigation against the DOL’s recent mandate changes the ruling, it is due to go into effect on December 1st. Between this rule, existing federal and state laws, and rising minimum wages in certain areas, golf facilities are expected to face a change in labor costs. As you begin the budgeting process for your facility or operation, it behooves you to understand how this new ruling will affect your forecasting.

Working the association’s outside counsel, the PGA has prepared a document to answer some questions posed and has provided a brief summary of the federal overtime regulations and framework. This information can be found on PGA.org in the Employment Center.

The document should not be construed in any way as legal advice and is not a substitute for obtaining legal advice from a qualified attorney. Each state is different which can be tricky. Your specific situation is probably different from all others. As such, you should seek the advice of qualified professional counsel with your questions.

As you prepare for the coming year, it is important for you to be cognizant of this rule change and the effects it may have on your budgeting.

Contact Carol Pence by calling (510) 706-1583 or via e-mail at CPence@pgahq.com.