Impact of the Final Regulations The DOL has commented about the impact the final regulations will have on employees and employers. The latest include proposed legislation (i) providing protections against non-payment of wages for freelance workers and (ii) expanding the list of permitted reasons for using statutory sick time to include reasons related to victims of domestic violence. Read More With Election Day drawing near, and large voter turnout expected, employers should ensure they are aware of state law requirements related to providing employees with time off.
In addition, more and more, employees must resort to lengthy court battles to receive their overtime pay. Furthermore, prior results do not guarantee a similar outcome. Our attorneys are available to assist employers in their compliance efforts and to represent employers in matters before state and federal courts and administrative agencies.
As Wage and Hour Administrator Tammy Mc Cutchen said last year, when revisions to the white collar exemptions initially were proposed, "Updating these regulations is long overdue - the types of jobs people do and the skills they need have changed, but the regulations have not." "The exemptions," she explained "have engendered considerable confusion over the years regarding who is, and who is not, exempt." This confusion has resulted in costly litigation and burdensome liability.
The revised regulations have modernized the standard to determine whether executive, administrative, professional, outside sales and computer employees are exempt from the overtime requirements of the FLSA.
The salary basis test was rewritten to define situations when an exempt employee's salary status could be lost.
And, the duties tests for all three white collar exemptions have been streamlined.
View Updated Analysis: What Employers Need to Know and Do About the Labor Department's Final Regulations on Overtime Exemptions On April 20, 2004, the U. Department of Labor, Wage and Hour Division, issued the new exempt status rules for "white collar" employees under the Fair Labor Standards Act (29 C. The salary level for exempt employees was raised to 5.
To reduce the confusion, the DOL revised the tests for determining whether an employee is exempt under the white collar exemptions.
Both workers and employers will benefit from having clearer rules that are easier to understand and enforce. Readers should consult counsel of their own choosing to discuss how these matters relate to their individual circumstances.
More workers will know their rights and if they are being paid correctly, more employers will understand exactly what their obligations are for paying overtime, and clearer more up-to-date rules will help the Wage and Hour Division more vigorously enforce the law, ensuring that workers are being paid fairly and accurately. Reproduction in whole or in part is prohibited without the express written consent of Jackson Lewis.