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Overtime Regulations Overhauled!!
The United States Department of Labor (USDOL) has recently overhauled federal overtime regulations, and they've put together a website referred to as the FairPay Website, designed to help employers understand the Department's new FairPay rules that serve to strengthen overtime protections.
new FairPay rules are designed to
The USDOL website has many seminars available for viewing online, designed to help employers learn more about the new "white collar" regulations.
Now of course, as is the case with just about any regulation, there are exemptions. If your employees qualify for the exemption(s) then by all means take those exemptions, but watch out for some heavy consequences if you take an exemption that your employees are not qualified for.
to the "Fact Sheet #17I: Blue-Collar Workers and
the Part 541 Exemptions Under the Fair Labor Standards Act (FLSA)"
Most employees in the United States are supposed to be paid overtime pay, at one and one-half times the regular rate of pay (at least), for all hours worked over 40 in a work week; this is a federal requirement.
However, Section 13(a)(1) of the FLSA provides an exemption from overtime pay for employees employed as bona fide executive, administrative, professional and outside sales employees, as well as certain computer employees. Section 13(a)(17) also carries exemptions for certain computer employees.
To qualify for exemption, your employee(s) must A) meet certain "tests" regarding their job duties and B) be paid on a salary basis at not less than $455 per week.
to the "Fact Sheet #17A titled "Exemption for Executive,
Administrative, Professional, Computer & Outside Sales Employees
Under the Fair Labor Standards Act (FLSA)"
Important: Job titles do not determine exempt status!!
To qualify for exemption, "white-collar" employees generally must meet certain "tests" regarding their job duties and be paid on a salary basis at not less than $455 per week.
Following is some general info on the exemptions for executive, administrative, professional, computer, and outside sales employees... Please see the fact sheets located at the USDOL website for more detailed information on the specific exemptions.
White-Collar Workers (Continued)
Sales Exemption (more
Compensated Employees (more
are exempt from the FLSA IF they customarily and regularly perform at least one of the duties of an exempt Executive, Administrative, or Professional employee as identified (above) in the standard tests for exemption.
Other Laws & Collective Bargaining Agreements
The standards that the FLSA provides are minimum standards that cannot be waived or reduced by laws, regulations, ordinances, etc. These standards may however be exceeded by laws, regulations, ordinances, etc.. If there's a difference in the standards then the stricter standards must be followed.
In addition, employers may, on their own initiative or under a collective bargaining agreement, provide a higher wage, shorter work week, or higher overtime premium than required under the FLSA.
Collective bargaining agreements CANNOT waive or reduce FLSA protections. Similarly, the FLSA (and the 29 CFR Part 541 regulation) does NOT relieve employers from their contractual obligations under those collective bargaining agreements.
I hope you've found this article informative. As mentioned at the beginning (of this article), while this article cannot be taken as legal advice, it can be used as a good starting point in determining whether or not your employees qualify for overtime exemptions or not.
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