In this conversation, AJ sits down with Mary Claire Smith, an Associate at MMM LLP, to discuss the recent changes to the Fair Labor Standards Act (FLSA) and its implications for operators. The FLSA is a law that governs minimum wage and overtime requirements. The new legislation increases the minimum salary requirement for exempt employees, primarily affecting management-level employees in industries such as hospitality and restaurants. Operators need to determine whether to raise salaries to maintain exempt classification or reclassify employees as non-exempt and pay them overtime. It is important to consult with legal counsel to ensure compliance and consider the financial and morale implications of these decisions.
