1. Wage & Hour Update for Financial Institutions

Wage & Hour Update for Financial Institutions

Wage & Hour Update for Financial Institutions
Event ID: 69738
Not for Sale
Recording: 12640

Duration: 90 minutes including question and answer session.
Presenter(s): Dr. James Ottavio Castagnera, attorney at law
$299.00, On-Demand includes full audio presentation, question and answer session, and presentation slides.
Credits: Live webinar approved for 1.5 NASBA credit hours (Business Law).
Who Should Attend? Human resources, financial officers, in-house counsel, managers, operations

Is Your Financial Institution Ready for the New Wage & Hour Regs? Or Is It Time to Audit Your “Exempt” Employee Categories Before Minimum Salaries Jump 50%? Three years of rulemaking and federal court litigation during the Obama administration, and much bureaucratic dithering during both the past and current administrations, the U.S. Department of Labor has finally released its newly revised rules for exempt employees – those executives, administrators and professionals not covered by the minimum wage and overtime requirements of the Fair Labor Standards Act.

Under the proposed regulations – now out for public comment and almost certainly destined to be the new law of the land – the minimum weekly salary will jump from $455 to $679. That’s a 50% hike. Put in annual terms, it’s a bump up from $23,600 to $35,308. If your institution employs “exempt” personnel earning less than $35,000, then perhaps now’s the time to consider if they are more appropriately classified as hourly workers. Or if not, how to ensure they measure up to the federal and – the possibly more stringent – state standards.

But it’s not just about the wages earned either. The DOL Wage & Hour Division Fact Sheet for the financial industry says, “Employees in the financial services industry generally meet the duties requirements for the administrative exemption…”, EXCEPT WHEN THEY DON’T. For example, did you realize that employees who sell financial products don’t qualify? And did you know that in recent class-action suits a major American bank paid out $36 million in 2015 and another $7 million in 2017 to its residential real estate appraisers, whom the bank had mistakenly classified as exempt employees?

Bottom line: In promulgating the new regulations the DOL is wielding a two-edged sword. On its first swing (the looming regulations), you may find yourself paying higher salaries to misclassified employees AND then getting penalized for the misclassification when the blade swings back the other way in a Wage & Hour audit.

Join Dr. Jim Castagnera, Esq., an employment attorney of nearly 40 years’ experience – including significant audit & litigation experience against the DOL’s Wage & Hour Division – as he walks you through the exempt v. non-exempt minefield that is being laid down for the financial services industry.


Avoid this potential double-whammy by learning:

  • How to determine which of your employees meet one of the three exemptions and which do not
  • How to write job descriptions that capture the specific job duties that the DOL identifies as meeting one or more of the exemptions in the financial service industries
  • How to monitor your day-to-day workforce activities to ensure that “exempt” employees really are doing what their job descriptions claim they are
  • For those employees who can’t meet exemption standards and who must work long hours, running up over time, how you may be able to design such salary options as a “fluctuated workweek” plan, to get that OT under control
  • What’s happening to the annual minimum compensation level for so-called “highly compensated employees” in financial services
  • If bonuses and incentives can be used to cover the looming 50% salary boost
  • How state W&H laws figure into the mix, potentially creating a perfect storm


Your conference leader for “Wage & Hour Update for Financial Institutions” is Dr. Jim Castagnera, Esq. Jim holds a JD and a Ph.D. from Case Western Reserve University. He was a labor, employment, and intellectual property lawyer at the Philadelphia law firm of Saul Ewing for ten years before joining Rider University as associate provost and legal counsel for academic affairs. His portfolio in that capacity has included regulatory compliance and research integrity; labor relations, litigation management, and dispute resolution; human subjects research, animal facilities, and lab safety; international faculty and student issues; services to students with disabilities; academic-program development, and academic governance matters. His publications include 21 books, mostly on education and employment topics. He teaches human-resource compliance courses online for Drexel University’s law school and is the chief consultant for his company, K&C HR Enterprises/Holland Media Services.


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