The Fair Labor Standards Act (FLSA)

Size: px
Start display at page:

Download "The Fair Labor Standards Act (FLSA)"

Transcription

1 By Robert D. Hayes, CPA, Ph.D., CMA, ChFC, Kenneth W. Hollman, Ph.D., CLU, ChFC, CEBS, CIC, CPCU and Sami M. Abbasi, DBA The Fair Labor Standards Act (FLSA) is one of the landmark acts in the field of labor relations and employment law. Passed in 1938, its purpose is to mandate certain employment practices and to proscribe others. For example, it is the first federal law to give American workers a 40-hour workweek and a federally-guaranteed minimum wage (which began at 25 cents per hour in the late 1930s). The FLSA also regulates the employment of children and specifies that certain full-time employees must be paid time-and-a-half after working more than 40 hours in a seven-day period. It affects the pay of several million workers who are subject to one or more of its several provisions, and recent changes in the overtime eligibility requirements of the law have ramifications for many other workers. Purpose Accounting firms are clearly impacted by the FLSA. CPAs can be of greater service to clients if they are knowledgeable of the major provisions of the law and of the latest modifications to the overtime rules. Further, any accounting firm that hires professional or non-professional employees may fall within the scope of the FLSA. Hence, owners and partners will not only be advising others about the law, but they will be forced to make decisions in their own organization about how workers should be classified for overtime purposes. The decisions they reach will have important consequences for their bottom line and bring severe penalties and fines if their classifications are later shown to be incorrect. The purpose of this article is to familiarize readers with the FLSA and its purposes, and to explain the recent 4 TENNESSEE CPA JOURNAL: April 2005 revisions in the law that will impact the overtime eligibility of workers across the country. The new law is intended to strengthen and restore the overtime protections originally afforded by the law, reflect current workplace conditions, and stem the tide of costly and burdensome class-action lawsuits spawned by ambiguously-worded wage and hour regulations. Particular emphasis is given in this article to the relevance of the changes to and the potential impact on accounting firms. Also provided are strategies that accounting firms can use to remain in compliance with the new regulations regarding overtime and to avoid hefty penalties that may result from violations of the law. Requirements for Exemption While not determinative, the primary factor used to ascertain whether an employee is or is not eligible for overtime pay is the basis for payment. The terms exempt and nonexempt, which change under the new law, are crucial for understanding and complying with provisions of the FLSA. Nonexempt means that an employee qualifies for time-and-a-half pay for all hours worked over 40 in a workweek. Exempt means that the employer is not obligated to pay the employee for hours worked beyond the standard 40-hour week. Nonexempt applies to occupations where individuals are paid on an hourly basis, receive compensation below a specific minimum or perform certain kinds of work if their salaries are above the specified minimum (e.g., a salaried bookkeeper with no managerial responsibilities making more than the specified threshold would be eligible for overtime pay). Workers who are paid for a job on a salary basis (a predetermined weekly or annual rate of pay, regardless of the number of hours worked) rather than on an hours-worked basis, and who meet certain job-duty tests, may qualify for exemption from FLSA overtime pay requirements. The question of whether a particular employee is exempt is very fact intensive and circumstance specific. It requires a case-by-case analysis of the employee s job duties, method and base of compensation, and actual earnings. The exceptions in the new law are so broadly written that it is often difficult to determine whether workers are exempt or nonexempt. Figuring out which employees are covered and which are not is very confusing and has become a rapidly growing area of labor law. If the employer misinterprets the FLSA rules and inadvertently misapplies exemptions or loses them due to prohibited pay practices, the misclassification may evoke class-action lawsuits or bring costly government actions and fines. Workers who are disgruntled over pay problems have ready access to advocates who can help them government investigators, unions and private-plaintiff s lawyers. Class-action lawsuits challenging employers over compliance with FLSA rules are brought more frequently than class actions under any other federal employment law. They may involve multi-million dollar judgments and settlements. The Department of Labor (DOL) is the federal government agency charged with enforcing the mandates of the FLSA. In some cases, all it takes to trigger an investigation of a firm s entire classification process is one phone call to the DOL from a rankled employee about the company s pay practices. continued on page 6

2 Overtime Overhaul: How the New FLSA Changes Could Affect You continued from page 4 FLSA Overhaul The new FLSA rules for employers on when and in what circumstances overtime pay is owed to workers were implemented on Aug. 23, The new law constitutes the first changes to overtime eligibility under the FLSA since 1975, and few would argue the law should not have been updated. The rickety scaffolding upon which the overtime regulations rest needed to be overhauled due to several forces that have reshaped the American workforce since the 1930s. These include an influx of women and foreigners into the labor force and a shift from manufacturing to service industries. The new law significantly amends the method of computing worker compensation and the way that overtime issues are handled. The rules are daunting and represent a serious compliance challenge to employers. Of the many changes inherent to the new law, the ones relating to the salary test are perhaps the most significant. Under the new rules, blue-collar workers whose annual earnings are under $23,660 a year (regardless of their job title or duties) are automatically entitled to the overtime protection of the FLSA. Under the old rules, the threshold was $8,060. There are also new guidelines as to which workers making more than $23,660 per year qualify for time-and-ahalf pay after working more than 40 hours per week. Workers earning a salary of over $100,000 annually ( highly-compensated employees ) who perform at least one duty of an exempt administrative, executive or professional employee (defined below) do not get overtime pay. The biggest problem for many employers will be whether or not to reclassify the huge swath of middleclass workers with salaries between $23,660 and $100,000. Employees earning a salary between the two figures are entitled to overtime unless their job duties qualify them for exemption under one of the new standard duty tests. The new FLSA regulations provide better information and clearer statements about which job duties (with emphasis on character of work) qualify workers for overtime pay. They also update the rules defining exemptions for white-collar workers in seven categories highly compensated employees, executives, business owners, administrative employees, learned and creative professional employees, outside sales employees, and computer employees. To help employers determine which workers meet the standard-duty tests, and hence may be exempted, the new rules provide samples of exempt kinds of work under each of the white-collar categories. Employers with their eye on controlling compensation costs will find that they now have more freedom to disqualify workers from overtime pay. However, any reclassification may rankle employees who feel that overtime pay is unjustifiably being denied to them. With observations about the likely impact on accounting firms, listed is a summary of the criteria necessary for employees in the indicated categories to qualify for the white-collar exemption: Highly Compensated Employee Exemption As noted, a worker who earns at least $100,000 per year on a salary or fee Winners and Losers from the New FLSA Law Generally Paid for Overtime Bookkeepers Clerks Computer Hardware Repairmen Cooks Firefighters Licensed Practical Nurses Manual Laborer Paramedics Policemen Rangers Reporters Generally Not Paid for Overtime Accountants Computer Programmers Computer Systems Analysts Dental Hygienists Editorial Writers Executive Assistants Executive Chefs Financial Service Employees HR Managers Insurance Claims Adjusters Registered Nurses basis and meets a reduced duty test is exempt from the overtime pay provisions. To qualify, the employee s primary duty must be the performance of office or non-manual work, and the employee must customarily and regularly perform at least one of the sets of job duties of an exempt white-collar worker. These criteria make it difficult for highlycompensated employees to now qualify for overtime pay. This exemption category will have relevance to some accounting firms, but the number of workers affected may be limited because of the high salary threshold inherent therein. Executive Exemption Under the new rules, executive employees are exempt if they earn the minimum salary required for exemption as a white-collar employee, at least $455 per week, and if they customarily exercise independent judgment and discretion in their work. There are three sides to this latter test. The employee must have the primary duty of managing the enterprise or a department or recognized subdivision thereof, customarily and regularly supervise the work of two or more fulltime employees, and have the authority to hire and fire employees or have his/her hire-and-fire recommendations be given particular weight. This exemption category could affect many accounting firms that are organized into departments (tax, auditing, financial services) headed by persons who are paid more than $23,660 in salary per year. To meet the duties test of the exemption, department heads must have the authority to hire and fire or have important weight given to their recommendations concerning such matters. Without question, this exemption category will offer greater opportunity for employee reclassification among larger accounting firms than smaller ones. The negative impact on worker morale aside, its application will enable 6 TENNESSEE CPA JOURNAL: April 2005

3 partners and owners with their eye on the bottom line to exempt many employees who now receive overtime pay for work in excess of 40 hours per week. Business Owner Exemption Employees who own a 20 percent or more equity interest of their employer and are actively engaged in the management of the business may fall within the scope of the business owner exemption. It should be noted that the concurrent performance of both exempt and nonexempt duties does not automatically disqualify an employee from this exemption. For example, a waiter who owns 20 percent or more of a restaurant and who supervises the work of other waiters (exempt work) might qualify even if he/she also performed work as a waiter (nonexempt work). However, to qualify for this exemption, the primary work of the owner/waiter would have to be in the management of other waiters. The business owner exemption category would impact a few accounting firms, but only in cases where an employee has substantial ownership interest and is actively engaged in management of the firm. It would be unusual for more than one or two CPAs in a firm to qualify for this exemption. In any case, most CPAs with a 20 percent or more equity interest in the business would probably not be receiving overtime pay. Administrative Exemption To qualify for the administrative exemption, employees must meet the minimum weekly salary test ($455) and have the primary duty of performing office or non-manual work that bears upon the authority to formulate or implement management policies. To meet the duties test, the employee s work must include the exercise of discretion and independent judgment with regard to matters of significance. The ambiguous wording in the administrative exemption provides little guidance to employers and makes this exemption category the most vague and dicey of all the exemptions for employers to work with and for the DOL to enforce. It has been (and will likely continue to be) an issue with human resources professionals and the source of much uncertainty and litigation. Financial service employees would generally meet the requirements for the administrative exemption, as would insurance claims adjustors, team leaders, executive assistants and human resources managers. Unlike small accounting firms, larger ones may have employees who fall within the purview of the administrative exemption. Included are employees who make decisions about what the composition of the book of business should be, the composition of the pay package of staff accountants and the standards that must be met for them to be retained or receive bonuses, and the criteria necessary for a consumer service representative to be kept on or to receive raises. Also included would be those who help establish the firm s mission statement, the long-run and shortrun goals of the firm, and the strategies and tactics that will be used to reach its mission and goals. Accounting firm owners and partners will likely invoke this exemption category more than any other. Professional Employees Exemptions The new FLSA regulations are more inclusive than the old ones with regard to who is a professional employee. They speak to three types of professional employees who are exempt from the overtime pay provisions of the FLSA. Two of the three were dealt with in the former law learned professionals and creative professionals. The new regulations identify a third type of professional employee, the computer professional, which now comprises a separate exemption category. Factors relevant to the determination of exemption as a learned professional are that the employee must (a) meet the earnings test, and (b) have the primary duty of performing work that is primarily intellectual in nature, requiring the consistent exercise of discretion and judgment and advanced knowledge in a field of science or learning that is acquired by specialized instruction. By using the term specialized instruction instead of specifying an advanced degree, the DOL is broadening the exemption to include on-the-job training and work experience. Physicians and attorneys are included in the DOL s qualifying fields, and CPAs (but not accounting clerks and bookkeepers) would generally be listed there. Registered nurses (but not licensed practical nurses) and chefs (but not cooks) are identified in the regulations as having duties that ordinarily satisfy the exemption. It seems clear that many accounting firms will be affected by this exemption category. The core definition of a creative professional employee is one who meets the earnings test and primarily performs work requiring invention, imagination, originality or talent in a recognized field of artistic or creative endeavor. Journalists would generally satisfy the duties requirements of the creative professional exemption category if the primary duty of their work required invention, imagination and originality, but they probably would not if their primary duty consisted only of collecting, organizing and recording information that is already in the public domain. The creative professional employee exemption is irrelevant to most accounting firms. Computer Employee Exemption Under the new regulations, certain employees who work with computers are exempt from the overtime pay provisions if specified conditions are satisfied. First, they must meet the earnings test ($455 per week or if compensated on an hourly basis, at a rate not less than $27.63 an hour). Regulations concerning this exemption speak of employees whose primary work includes one or more of the following kinds of duties: the application of systems analysis techniques and procedures;... the design, development, analysis, creation, testing or modification of computer systems or programs;... or the design, documentation, testing, creation, or modification of computer programs related to machine operating systems. This is an area where job titles are particularly helpful. Computer systems analysts, computer programmers and software engineers would satisfy the conditions of this exemption category if their primary duty involves the kind of work described in the exemption. continued on page 8 TENNESSEE CPA JOURNAL: April

4 Overtime Overhaul: How the New FLSA Changes Could Affect You continued from page 7 Many accounting firms have one or more computer personnel on their payroll who would qualify for exemption from overtime pay under this exemption category. It seems probable that most computer experts are paid a high enough salary to meet the earnings test, and many perform functions that would qualify them for the exemption under the duties test. Hence many owners/ partners wishing to cut compensation costs could apply for an exemption for their computer personnel and reduce the size of their payroll. Outside Sales Employee Exemption To qualify under this exemption, the employee must meet the earnings test and have as his/her primary duty be the selling of goods or products or obtaining orders or contracts for services and facilities. Another base for the exemption is that the employee must customarily and regularly engage in their work away from the employer s place of business. Most accounting firms will have very few employees, if any, that qualify for this exemption. All of the above exemptions are narrowly interpreted by the DOL. The initial presumption is that the employee is not considered exempt, and the ultimate burden of supporting the application rests with the employer. The particular facts of an individual s employment, not job titles or job descriptions, are determinative as to whether or not an exemption applies. To avoid misclassification and run serious and potentially expensive risks, the employer must stand ready to prove to the DOL that the employee is performing work that satisfies the specific requirements of one of the exemption categories. The Salary or Fee-Basis Test As noted above, those qualifying for one of the seven exemptions must be compensated on a salary basis (or, alternatively, for administrative and professional employees, on a fee basis) at a minimum rate (except for computer programming professionals who receive the minimum hourly rate). Merely designating an employee s compensation as a salary (or fee or commission), does not automatically position that worker for exempt status. Rather, the employee must be paid a predetermined amount on a weekly or less frequent basis for each work week in which the employee performs any work. The salary-basis test is concerned not only with the amount of payment but the manner of payment for exempt workers. With some exceptions, an employee s salary cannot be reduced for time not worked during a week. Among the most notable exceptions, employers may reduce a worker s salary for one or more full days of work missed for vacation or other personal reasons (other than sickness or accident) such as intermittent family or medical leave. Special rules apply to absences due to sickness and disability. Further, manual laborers and other blue-collar workers who are paid on an hourly basis, licensed practical nurses, and most first responders law enforcement officers, firefighters, and other emergency and public safety workers are automatically entitled to overtime pay. The new law also protects workers subject to collective bargaining or other private agreements. Veteran s rights to overtime continue to be protected. Strategic Steps for Compliance The new FLSA salary and duty tests raise many questions about which workers are exempt and make the reclassification process a perilous one. However, the application of sound risk management techniques can help employers reduce the risk of claims. Here are a few guidelines that will help CPAs to remain compliant and avoid or reduce the risk of an injunctive proceeding, the potentially devastating liability from a DOL lawsuit, or a class-action lawsuit from disgruntled employees for an inadvertent and perhaps isolated infraction of the classification or overtime rules: 1. Evaluate actual job duties and wages to check whether currently exempt employees particularly those whose classifications were potentially uncertain before the passage of the new law are still classified properly under the new DOL guidelines. 2. Review all pay practices, including employee wage and hour 2. classifications, to ensure their compliance with the new FLSA criteria. Then update them accordingly. The classifications may have changed due to the redefinitions in the new law. 3. Carefully calculate overtime pay for nonexempt employees. Employers often run afoul of FLSA rules by failing to consider all sources of employee income. Be sure that nondiscretionary bonuses and shift-premiums are included in the calculation of the regular rate of pay for nonexempt employees. As a corollary, nonexempt employees should not be permitted to work before or after their scheduled time without overtime compensation. They must be paid for all time worked, whenever and wherever and in whatever amounts it is performed, even if the work was not requested and even if it was prohibited (if the employer knew or should have known that the unauthorized work was being preformed). 4. Scrutinize written job descriptions, job titles and personnel policy statements to ensure that they are accurate in light of the new regulations. If not, they should be rescinded and appropriately revised before they are used again. In some cases, material changes in job duties, coupled with appropriate job description changes, could enhance the employer s contention that an employee should be reclassified as exempt. 5. Inspect pay records for prior misclassification of employees which resulted in underpayment. If errors are discovered, the overtime earned should be promptly paid to the employees. This is a better alternative than being involved in a DOL audit and settlement or a class-action lawsuit from discontented employees. 6. Make no exemption classifications without consulting an attorney or labor law expert who is knowledgeable of and familiar with the wageand-hour compliance rules in the updated FLSA. Conclusion Without question, the recent changes in the FLSA regarding overtime pay can serve as a cost-saving strategy that CPAs and other financial professionals 8 TENNESSEE CPA JOURNAL: April 2005

5 can suggest when clients ask for help in reducing the impact of rising labor costs on their profit margin. CPAs can also use these strategies when reclassifying workers in their own operations. However, CPAs should be mindful of the employment practices exposures they or their clients face if their wage and hour classification practices breach legal boundaries. For their own protection, employers should make comprehensive audits of job titles and classifications to ensure that all people and positions are classified correctly. In our challenging cost environment where employee compensation continues to escalate, CPAs should understand that the reclassification of workers for exemption from overtime pay is now easier than before. Many clients will likely choose this measure to help get a handle on compensation costs. However, workers who now receive overtime pay may perceive that their employer has reclassified them or will attempt to reclassify them to avoid paying overtime. Hence, owners and partners are admonished to remember before they begin a reclassification process that no firm has a birthright to the commitment of its workforce. In all of its personnel and compensation practices, a firm must work diligently and exercise good human relations skills to harness its employees skills and abilities and leverage their willingness to use those attributes to the firm s advantage. The most prudent policy for owners and partners of accounting firms who decide to reclassify workers is to communicate honestly with the workers and keep them informed about impending changes in compensation and personnel practices. The firm should educate employees about FLSA status changes and what the organization hopes to achieve with these changes, and explain to them that the changes being made are permissible and possibly even required by law. Partners and owners should be ready to answer any questions the workers have about their status. This honest and open approach to explaining changes in the system of compensation will help allay the fears of employees and encourage them to be more innovative and enthused and to be more deeply motivated to share in the firm s mission. Hopefully, it will positively impact the quality of work by the employees and the productivity and profit of the firm. About the authors Robert D. Hayes, CPA, Ph.D., ChFC, CMA, is a professor of accounting and business law at Tennessee State University in Nashville, Tenn. He can be reached at tnstate.edu. Kenneth W. Hollman, Ph.D., CLU, ChFC, CPCU, CIC, CEBS, holds the Tommy T. Martin Chair of Insurance at Middle Tennessee State University in Murfreesboro, Tenn. He can be reached at Sami M. Abbasi, DBA, is a professor of management at Norfolk State University in Norfolk, Va. He can be reached at TENNESSEE CPA JOURNAL: April

WHAT EMPLOYERS NEED TO KNOW ABOUT RECENT CHANGES TO THE FLSA REGULATIONS

WHAT EMPLOYERS NEED TO KNOW ABOUT RECENT CHANGES TO THE FLSA REGULATIONS Spring 2005 BY JEFFREY A. DRETLER WHAT EMPLOYERS NEED TO KNOW ABOUT RECENT CHANGES TO THE FLSA REGULATIONS On April 20, 2004, the U.S. Department of Labor (DOL) announced changes to the white collar exemptions

More information

EXEMPT VS. NON-EXEMPT Identifying Employee Classification

EXEMPT VS. NON-EXEMPT Identifying Employee Classification EXEMPT VS. NON-EXEMPT Identifying Employee Classification Employee Classification Keeping it all straight The comptroller of a small company notices that her accounting clerk works a lot of overtime. In

More information

Overview of Changes to Regulations. Among other changes, the new regulations:

Overview of Changes to Regulations. Among other changes, the new regulations: On April 20, 2004, in an attempt to better accommodate the realities of the modern workplace, the United States Department of Labor ( DOL ) published regulations changing the standards governing whether

More information

Fair Labor Standards Act Guide

Fair Labor Standards Act Guide Fair Labor Standards Act Guide Executive Employee Exemption not less than [minimum wage x 40 hours] per week exclusive of board, lodging or other facilities, AND Primary duty is management of the enterprise

More information

California State University

California State University California State University Office of the Chancellor The Fair Labor Standards Act (FLSA): White Collar Exemption Guidelines Human Resources Administration 2004 The FLSA and White Collar Exemption Guidelines

More information

Topic: They re Here (Are You Ready?): The New FLSA Regulations

Topic: They re Here (Are You Ready?): The New FLSA Regulations THE RESOURCE A Legal Newsletter for Employers & Human Resource Professionals By: L. Diane Tindall & Mary S. McCrory Attorneys-at-Law Issue XXI Summer 2004 Topic: They re Here (Are You Ready?): The New

More information

PIMA COUNTY, ARIZONA BOARD OF SUPERVISORS POLICY

PIMA COUNTY, ARIZONA BOARD OF SUPERVISORS POLICY PIMA COUNTY, ARIZONA BOARD OF SUPERVISORS POLICY D 23.17 1 of 6 Background It is the policy of the Board of Supervisors that all of its managers and supervisors are versed in the requirements of the Fair

More information

Understanding Exemptions Under the FLSA

Understanding Exemptions Under the FLSA Understanding Exemptions Under the FLSA Introduction The Fair Labor Standards Act (FLSA) was passed in 1938. It set standards for child labor, minimum wage and overtime pay. Since the passage of the Equal

More information

It is the responsibility of the Agency Head, or their designee, to determine whether any exemption is applicable to particular employees.

It is the responsibility of the Agency Head, or their designee, to determine whether any exemption is applicable to particular employees. Page 1 of 10 EXEMPTION OF EXECUTIVE, ADMINISTRATIVE, PROFESSIONAL, AND COMPUTER EMPLOYEES UNDER THE FLSA The exempt or non-exempt status of any particular employee must be determined on the basis of whether

More information

How to Avoid Emerging Wage & Hour Risks: Exempt or Non- Exempt, Contractor Liability & Minimum Wage Hikes

How to Avoid Emerging Wage & Hour Risks: Exempt or Non- Exempt, Contractor Liability & Minimum Wage Hikes How to Avoid Emerging Wage & Hour Risks: Exempt or Non- Exempt, Contractor Liability & Minimum Wage Hikes Jonathan C. Sterling, Shareholder, Carlton Fields Jorden Burt, P.A. The Onslaught Continues Wage

More information

Decision-Making on Exempt/Non-Exempt Status. A Resource for Department/Office Heads and Other Managers

Decision-Making on Exempt/Non-Exempt Status. A Resource for Department/Office Heads and Other Managers Human Resources Decision-Making on Exempt/Non-Exempt Status A Resource for Department/Office Heads and Other Managers If you have any questions about these materials, please contact Human Resources DECISION-MAKING

More information

FLSA AND WAGE PAYMENT

FLSA AND WAGE PAYMENT FLSA AND WAGE PAYMENT EMPLOYMENT LAW CERTIFICATE SERIES: BUILDING WORKPLACES THAT WIN 12 AUGUST 2015 David Dubberly* and Jimmy Byars *Specialist in Employment and Labor Law ddubberly@nexsenpruet.com jbyars@nexsenpruet.com

More information

Why Should Businesses Care About Wage and Hour Laws?

Why Should Businesses Care About Wage and Hour Laws? MCFADDEN, WHITE SPRATTLIN & DAVIS LLC Society of Human Resource Management Rome Chapter Monthly Meeting - May 12, 2015 How To Avoid Costly Wage and Hour Lawsuits and Agency Investigations By Nancy S. Sprattlin,

More information

WHO S EXEMPT? THE NEW FAIR LABOR STANDARDS ACT REGULATIONS By Brandon W. Zuk, Fraser Trebilcock Davis & Dunlap, P.C.

WHO S EXEMPT? THE NEW FAIR LABOR STANDARDS ACT REGULATIONS By Brandon W. Zuk, Fraser Trebilcock Davis & Dunlap, P.C. WHO S EXEMPT? THE NEW FAIR LABOR STANDARDS ACT REGULATIONS By Brandon W. Zuk, Fraser Trebilcock Davis & Dunlap, P.C. I. OVERVIEW OF THE FAIR LABOR STANDARDS ACT. A. The Fair Labor Standards Act is the

More information

Overtime Pay Compliance for a New Era of Employment Law:

Overtime Pay Compliance for a New Era of Employment Law: A publication of Hunter Business Law Copyright 2016 Overtime Pay Compliance for a New Era of Employment Law: Effective Strategies and Planning Tools for Employers A GUIDE TO EMPLOYMENT COMPLIANCE 119 S.

More information

Wage & Hour Exempt Employees, the Salary Basis Test and Unlawful Deductions. By: Christina Lewis

Wage & Hour Exempt Employees, the Salary Basis Test and Unlawful Deductions. By: Christina Lewis Wage & Hour Exempt Employees, the Salary Basis Test and Unlawful Deductions By: Christina Lewis Exemptions under the FLSA Executive Employees Administrative Employees Professional Employees Computer Employees

More information

A Wage and Hour Primer for Small Business Owners:

A Wage and Hour Primer for Small Business Owners: WHITE PAPER A Wage and Hour Primer for Small Business Owners: Avoid Common Pitfalls of Employee Classification What makes someone an employee and not an independent contractor? Well-intentioned small business

More information

EMPLOYMENT & LABOR LAW FLASH FOCUS

EMPLOYMENT & LABOR LAW FLASH FOCUS EMPLOYMENT & LABOR LAW FLASH FOCUS THE FEDERAL DEPARTMENT OF LABOR ISSUES NEW REGULATIONS GOVERNING EXEMPT EMPLOYEES The federal Department of Labor (DOL) recently issued new regulations governing the

More information

FAIR LABOR STANDARDS ACT UPDATE: The Fair Pay Rules. Matthew Scott Disbrow, Esq.

FAIR LABOR STANDARDS ACT UPDATE: The Fair Pay Rules. Matthew Scott Disbrow, Esq. FAIR LABOR STANDARDS ACT UPDATE: The Fair Pay Rules Matthew Scott Disbrow, Esq. I. THE FAIR LABOR STANDARDS ACT The United States Congress passed the Fair Labor Standards Act, 29 U.S.C. 210, et. seq. (

More information

Communications Broadcast Advisory

Communications Broadcast Advisory February 21, 2007 Communications Broadcast Advisory A Broadcaster s Guide to the Fair Labor Standards Act by Julia E. Judish and Ellen C. Cohen The Fair Labor Standards Act (the FLSA ) is the federal law

More information

Compensation and Salary Administration

Compensation and Salary Administration Compensation and Salary Administration 1 Ori Murdock, SPHR HR Manager of G&A Partners Provides HR assistance and support to over 250 companies through out Texas and various other states. Over 15 years

More information

Common Payroll Pitfalls. Presented by: Christopher Brown, SPHR January 25, 2012

Common Payroll Pitfalls. Presented by: Christopher Brown, SPHR January 25, 2012 Common Payroll Pitfalls Presented by: Christopher Brown, SPHR January 25, 2012 1 Who is an Employee An employer-employee relationship generally exists if the person contracting for services has the right

More information

THREE RIVERS COMMUNITY COLLEGE PERSONNEL REGULATION

THREE RIVERS COMMUNITY COLLEGE PERSONNEL REGULATION Last Revision: Page 1 of 10 Introduction The Federal Fair Labor Standards Act (the Act ) was enacted by Congress to regulate such employment matters as hours of work, minimum wage, overtime compensation,

More information

Loan Officer Compensation Briefing

Loan Officer Compensation Briefing Loan Officer Compensation Briefing October, 2010 POE Group, Inc. Management consulting firm established in 1997 Clients range from small firms to mid caps Areas of Expertise Total reward systems Executive

More information

Compensation Basics For Managers and Supervisors

Compensation Basics For Managers and Supervisors Compensation Basics For Managers and Supervisors Truths About Compensation Truth #1: Compensation management is more of an art than a science. 2 Truths About Compensation Many elements influence pay decisions

More information

BB. An Update on the Fair Labor Standards Act and How the New White Collar Exemption Regulations will Affect Long Term Care Facilities

BB. An Update on the Fair Labor Standards Act and How the New White Collar Exemption Regulations will Affect Long Term Care Facilities BB. An Update on the Fair Labor Standards Act and How the New White Collar Exemption Regulations will Affect Long Term Care Facilities Cohen & Grigsby PC Pittsburgh, PA Cohen & Grigsby, PC Pittsburgh,

More information

Classification of Employees as Exempt v. Non-Exempt Under the Fair Labor Standards Act. By Maureen E. Carr, Esq.

Classification of Employees as Exempt v. Non-Exempt Under the Fair Labor Standards Act. By Maureen E. Carr, Esq. Classification of Employees as Exempt v. Non-Exempt Under the Fair Labor Standards Act By Maureen E. Carr, Esq. The Fair Labor Standards Act ( FLSA ) is a wide-reaching employment law that establishes

More information

Exempt or Not Exempt? The Fair Labor Standards Act (FLSA)

Exempt or Not Exempt? The Fair Labor Standards Act (FLSA) Exempt or Not Exempt? The Fair Labor Standards Act (FLSA) Background and Purpose The Fair Labor Standards Act (FLSA) is a U.S. Federal Law enacted in 1938 to prohibit employers from taking advantage of

More information

DOL Proposed Changes to FLSA Overtime Rules

DOL Proposed Changes to FLSA Overtime Rules DOL Proposed Changes to FLSA Overtime Rules Presented by: Mike Bourgon Mike Conroy Introduction On June 30, 2015, the United States Department of Labor (DOL) released proposed regulations that would modify

More information

Small Entity Compliance Guide

Small Entity Compliance Guide Wage and Hour Division United States Department of Labor Small Entity Compliance Guide to the Fair Labor Standards Act s White Collar Exemptions > For more information visit www.dol.gov/whd The Department

More information

FLSA Compliance: Exempt vs. Non-Exempt Classification Audit **FEDERAL**

FLSA Compliance: Exempt vs. Non-Exempt Classification Audit **FEDERAL** FLSA Compliance: Exempt vs. Non-Exempt Classification Audit **FEDERAL** State exemption tests may vary. When state laws differ, employers must follow the rules that most favor the employee. Please call

More information

The Fair Labor Standards Act1 ( FLSA ) is a federal law that applies to

The Fair Labor Standards Act1 ( FLSA ) is a federal law that applies to Information I n f o r m a t i o n Bulletin B u l l e t i #1 n # 5 HR National Association of Community Health Centers, Inc HUMAN RESOURCES SERIES For more information please contact Jacqueline C. Leifer,

More information

Executive Exemption Worksheet

Executive Exemption Worksheet Executive Exemption Worksheet This position is paid on a salary basis. This position receives a guaranteed salary of at least $455 each week. The primary duty of this position is management of the enterprise

More information

Practical Advice for Classifying Employees. Presented by. Sandy Rappaport Mike Moye

Practical Advice for Classifying Employees. Presented by. Sandy Rappaport Mike Moye Practical Advice for Classifying Employees Presented by Sandy Rappaport Mike Moye 106 Classifying Employees General General Presumption Federal Law Fair Labor Standards Act California Law Wage Orders Labor

More information

FLSA EXEMPTIONS FLOW CHART

FLSA EXEMPTIONS FLOW CHART FLSA EXEMPTIONS FLOW CHART This flow chart serves as a basic outline for an initial analysis of positions being considered for exemption under the FLSA and is meant to serve as one of several tools for

More information

FLSA : is not an acronym for

FLSA : is not an acronym for FLSA : is not an acronym for Fairly Long Standing Agony The FAIR LABOR STANDARDS ACT Presented by: Jane Allen Fall 2008 Objectives Three Sessions Session I Overview of FLSA Hours Worked Session II Overtime

More information

FLSA and IWC Compliance: Exempt vs. Non-Exempt Classification Audit **CALIFORNIA**

FLSA and IWC Compliance: Exempt vs. Non-Exempt Classification Audit **CALIFORNIA** FLSA and IWC Compliance: Exempt vs. Non-Exempt Classification Audit **CALIFORNIA** California s Industrial Welfare Commission (IWC) sets the rules for exempt status by way of Wage Orders applicable to

More information

SUMMARY OF FINAL RULE CONCERNING FLSA WHITE COLLAR EXEMPTIONS. Salary Basis Test ( 541.602)

SUMMARY OF FINAL RULE CONCERNING FLSA WHITE COLLAR EXEMPTIONS. Salary Basis Test ( 541.602) SUMMARY OF FINAL RULE CONCERNING FLSA WHITE COLLAR EXEMPTIONS By: Gregory P. Kult 1 April 30, 2004 The federal Fair Labor Standards Act (FLSA) requires covered employers to pay employees at least the federal

More information

An Introduction to FLSA: Fair Labor Standards Act Participant Guide

An Introduction to FLSA: Fair Labor Standards Act Participant Guide An Introduction to FLSA: Fair Labor Standards Act Participant Guide SVH: HR Design Intro to FLSA 6.11.2014 (revision date 9.03.2014) Table of Contents Your Facilitator(s) 1 Overview / Why are we Here?

More information

Wage & Hour Issues in Today's A/E Industry Hosted By ACEC Washington

Wage & Hour Issues in Today's A/E Industry Hosted By ACEC Washington Wage & Hour Issues in Today's A/E Industry Hosted By ACEC Washington September 5, 2012 David K. Eckberg & Kara R. Masters Skellenger Bender, P.S. deckberg@skellengerbender.com kmasters@skellengerbender.com

More information

Copyright September 2009 All Rights Reserved Employment Learning Innovations, Inc. Atlanta, Georgia

Copyright September 2009 All Rights Reserved Employment Learning Innovations, Inc. Atlanta, Georgia Copyright September 2009 All Rights Reserved Employment Learning Innovations, Inc. Atlanta, Georgia Audio will be broadcast through your speakers. If you cannot hear the audio, please check your speakers.

More information

HOT GOODS AND FAIR LABOR STANDARDS ACT COMPLIANCE

HOT GOODS AND FAIR LABOR STANDARDS ACT COMPLIANCE HOT GOODS AND FAIR LABOR STANDARDS ACT COMPLIANCE TEXAS WINE AND GRAPE GROWERS ASSOCIATION ANNUAL CONVENTION--FEBRUARY 19, 2015 Presented by: Ann Abrams Price, Esq. Boulette Golden & Marin ann@boulettegolden.com

More information

THE ARCHDIOCESE OF SAINT PAUL AND MINNEAPOLIS

THE ARCHDIOCESE OF SAINT PAUL AND MINNEAPOLIS THE ARCHDIOCESE OF SAINT PAUL AND MINNEAPOLIS 2015 EMPLOYMENT LAW UPDATE SEMINAR Pay Issues Affecting Exempt (and Non-Exempt) Employees P R E S E N T E D B Y T h o m a s B. W i e s e r INTRODUCTION The

More information

Overtime Exemptions and Misclassification Issues: Brewing Wage and Hour Violations Could Seriously Interrupt Your Craft

Overtime Exemptions and Misclassification Issues: Brewing Wage and Hour Violations Could Seriously Interrupt Your Craft Overtime Exemptions and Misclassification Issues: Brewing Wage and Hour Violations Could Seriously Interrupt Your Craft Presented by: Megan Winter mwinter@laborlawyers.com 858-597-9622 Number One Mistake

More information

A. TESTS USED TO DETERMINE EXEMPT STATUS OF EXECUTIVE, ADMINISTRATIVE AND/OR PROFESSIONAL EMPLOYEES:

A. TESTS USED TO DETERMINE EXEMPT STATUS OF EXECUTIVE, ADMINISTRATIVE AND/OR PROFESSIONAL EMPLOYEES: Exemptions As a general rule, all employees working for a covered employer are subject to the provisions of the FLSA and any analogous state wage and hour law. Some employees, however, are exempt from

More information

4. EMPLOYMENT LAW. LET S GO LEGAL: The Right Road to Compliance & Protection KNOW KNOW MORE. 1. Minimum Wage & Overtime

4. EMPLOYMENT LAW. LET S GO LEGAL: The Right Road to Compliance & Protection KNOW KNOW MORE. 1. Minimum Wage & Overtime 4. EMPLOYMENT LAW KNOW There are five key areas of Employment Law for nonprofit to be aware of: 1. Minimum Wage & Overtime: Federal, State, and in some cases Local law regulates employers pay practices

More information

WELCOME TO THE FAIR LABOR STANDARDS ACT. Randall D. Van Vleck General Counsel New Mexico Municipal League Santa Fe, New Mexico Rvanvleck@nmml.

WELCOME TO THE FAIR LABOR STANDARDS ACT. Randall D. Van Vleck General Counsel New Mexico Municipal League Santa Fe, New Mexico Rvanvleck@nmml. WELCOME TO THE FAIR LABOR STANDARDS ACT Randall D. Van Vleck General Counsel New Mexico Municipal League Santa Fe, New Mexico Rvanvleck@nmml.org I. What is the Fair Labor Standards Act? The Fair Labor

More information

Exempt vs. Nonexempt: How to Find and Fix Misclassification Mistakes

Exempt vs. Nonexempt: How to Find and Fix Misclassification Mistakes Exempt vs. Nonexempt: How to Find and Fix Misclassification Mistakes Presented by: Austin E. Smith Ogletree Deakins Thursday, June 27, 2013 1:30 p.m. to 3:00 p.m. Eastern 12:30 p.m. to 2:00 p.m. Central

More information

FYI WAGE AND HOUR. Exemptions - Duties Test

FYI WAGE AND HOUR. Exemptions - Duties Test FYI 1799 Pennsylvania Street P.O. Box 539 Denver, Colorado 80201.0539 303.839.5177 800.884.1328 www.msec.org Revised: July 2011 WAGE AND HOUR Exemptions - Duties Test Summary: The Fair Labor Standards

More information

The International Public Management Association for Human Resources (IPMA HR) is a nonprofit

The International Public Management Association for Human Resources (IPMA HR) is a nonprofit September 3, 2015 Ms. Mary Ziegler Director of the Division of Regulations, Legislation and Interpretation Wage and Hour Division U.S. Department of Labor 200 Constitution Avenue, N.W. Room S 3502 Washington,

More information

U.S. Department of Labor Announces New FairPay Rules

U.S. Department of Labor Announces New FairPay Rules April 30, 2004 U.S. Department of Labor Announces New FairPay Rules The Fair Labor Standards Act of 1938 (FLSA) requires that employers pay certain employees overtime pay, at time and one-half the regular

More information

Wage and Hour: Staying on the Right Side of the DOL. Sage HR R&R: Refresh and Recertify Webcast Series

Wage and Hour: Staying on the Right Side of the DOL. Sage HR R&R: Refresh and Recertify Webcast Series Wage and Hour: Staying on the Right Side of the DOL Sage HR R&R: Refresh and Recertify Webcast Series Your Presenter for Today Mary Anne Osborne, SPHR The Osborne Group Over 25 years of HR experience in

More information

Workers Compensation Issues/independent contractors and misclassification

Workers Compensation Issues/independent contractors and misclassification Workers Compensation Issues/independent contractors and misclassification Most jobs are governed by the FLSA. Some are not. Some jobs are excluded from FLSA coverage by statute. Other jobs, while governed

More information

OH, NO! IT S WAGE AND HOUR! UNDERSTANDING WHO IS EXEMPT AND NON-EXEMPT by

OH, NO! IT S WAGE AND HOUR! UNDERSTANDING WHO IS EXEMPT AND NON-EXEMPT by OH, NO! IT S WAGE AND HOUR! UNDERSTANDING WHO IS EXEMPT AND NON-EXEMPT by Scott Warrick, JD, MLHR, SPHR I. EXECUTIVE EXEMPTION A. Executive Exemption Short Test To qualify for the executive employee exemption,

More information

Published on e-li (https://ctas-eli.ctas.tennessee.edu) June 29, 2016 Executive, Administrative and Professional Exemptions

Published on e-li (https://ctas-eli.ctas.tennessee.edu) June 29, 2016 Executive, Administrative and Professional Exemptions Published on e-li (https://ctas-eli.ctas.tennessee.edu) June 29, 2016 Executive, Administrative and Professional Exemptions Dear Reader: The following document was created from the CTAS electronic library

More information

THE FAIR LABOR STANDARDS ACT: AN OVERVIEW

THE FAIR LABOR STANDARDS ACT: AN OVERVIEW THE FAIR LABOR STANDARDS ACT: AN OVERVIEW MATERIALS BY: ALLISON SCHAFER, LEGAL COUNSEL/DIRECTOR OF POLICY PRESENTED BY: CHRISTINE SCHEEF, STAFF ATTORNEY NORTH CAROLINA SCHOOL BOARDS ASSOCIATION July 2013

More information

WAGE AND HOUR FOR HEALTH CARE EMPLOYERS 30 COMMON QUESTIONS

WAGE AND HOUR FOR HEALTH CARE EMPLOYERS 30 COMMON QUESTIONS WAGE AND HOUR FOR HEALTH CARE EMPLOYERS 30 COMMON QUESTIONS Note: This article directed toward health care employers. Although much of it will be of interest to other employers as well, its application

More information

Executive Exemption Current Long Test Current Short Test Proposed Standard Test Salary $155/week $250/week $425/week Duties Employee s primary duty is

Executive Exemption Current Long Test Current Short Test Proposed Standard Test Salary $155/week $250/week $425/week Duties Employee s primary duty is Executive Exemption Salary $155/week $250/week $425/week Duties duty is managing his/her enterprise or a regular department thereof; Employee regularly directs two or more other employees; Employee manages

More information

New Jersey Adopts Federal Regulations Regarding White Collar Overtime Exemptions

New Jersey Adopts Federal Regulations Regarding White Collar Overtime Exemptions Overview On September 6, 2011, the New Jersey Department of Labor and Workforce Development ( NJDOL ) repealed the existing state regulations regarding white collar overtime exemptions (the administrative,

More information

The Fair Labor Standards Act and the Connecticut Wage and Hour Law: Executive, Administrative and Professional Exemptions

The Fair Labor Standards Act and the Connecticut Wage and Hour Law: Executive, Administrative and Professional Exemptions The Fair Labor Standards Act and the Connecticut Wage and Hour Law: Executive, Administrative and Professional Exemptions Fair Labor Standards Act Federal Minimum Wage: $7.25/hour Connecticut Minimum Wage:

More information

Are You My Employee?

Are You My Employee? Are You My Employee? Proper Classification of Exempt Employees and Independent Contractors Elizabeth Wells Skaggs and Richard A. Hooker January 19, 2012 Important Notice: This presentation has been prepared

More information

Investigating Workers Compensation Claims and Complying with Wage and Hour Law

Investigating Workers Compensation Claims and Complying with Wage and Hour Law Investigating Workers Compensation Claims and Complying with Wage and Hour Law Noel C. Shepard 614-559-7223 nshepard@fbtlaw.com Adam R. Hanley 614-559-7238 ahanley@fbtlaw.com Investigating Workers Compensation

More information

The following provisions apply to the accrual and use of overtime compensation:

The following provisions apply to the accrual and use of overtime compensation: To: All Appointing Authorities and Personnel Officers From: of Administrative Services Re: Overtime Compensation PURPOSE To require all agencies to adopt a uniform overtime compensation policy that complies

More information

Plaintiff s Lawyers Bullish On Merrill Lynch: Brokerage Firm Agrees To Pay $37 Million To Settle Overtime Claims By Stockbroker

Plaintiff s Lawyers Bullish On Merrill Lynch: Brokerage Firm Agrees To Pay $37 Million To Settle Overtime Claims By Stockbroker AUGUST 26, 2005 Plaintiff s Lawyers Bullish On Merrill Lynch: Brokerage Firm Agrees To Pay $37 Million To Settle Overtime Claims By Stockbroker By Dale A. Hudson In a settlement that may well be a harbinger

More information

GUIDELINES TO DETERMINE FLSA STATUS

GUIDELINES TO DETERMINE FLSA STATUS GUIDELINES TO DETERMINE FLSA STATUS State of Hawaii Department of Human Resources Development Employee Classification & Compensation Division October 2013 State of Hawaii Department of Human Resources

More information

FLSA Exemption Changes: The Proposed Rules Are Coming. Squire Patton Boggs Webinar Series

FLSA Exemption Changes: The Proposed Rules Are Coming. Squire Patton Boggs Webinar Series FLSA Exemption Changes: The Proposed Rules Are Coming Squire Patton Boggs Webinar Series Jill S. Kirila, Partner jill.kirila@squirepb.com 614.365.2772 Jeffrey L. Turner, Partner jeff.turner@squirepb.com

More information

Federal and New York Wage & Hour Laws. NYSAIS April 20, 2011

Federal and New York Wage & Hour Laws. NYSAIS April 20, 2011 NYSAIS April 20, 2011 Presented by Mark E. Brossman Scott A. Gold Adam J. Rivera Schulte Roth & Zabel LLP 212.756.2000 Governing Law Fair Labor Standards Act ( FLSA ) Federal wage and hour law that requires

More information

Q1: What law regulates the payment of overtime?

Q1: What law regulates the payment of overtime? Guidance for managing Non-Exempt Staff Q1: What law regulates the payment of overtime? A: The Fair Labor Standards Act (FLSA) establishes minimum wage, overtime pay, recordkeeping, and child labor standards

More information

Legal Issues Surrounding Internships

Legal Issues Surrounding Internships Legal Issues Surrounding Internships What are the legal issues surrounding internships? by Rochelle Kaplan Career services and college relations professionals often raise questions about an intern s employment

More information

City of Minneapolis Fair Labor Standards Act Procedures for Exempt Employees (Link to Policy)

City of Minneapolis Fair Labor Standards Act Procedures for Exempt Employees (Link to Policy) City of Minneapolis Fair Labor Standards Act Procedures for Exempt Employees (Link to Policy) Applies to: All employees classified as exempt as defined by the Fair Labor Standards Act (FLSA). These procedures

More information

03.602 Compensatory Leave and Overtime.

03.602 Compensatory Leave and Overtime. 03.602 Compensatory Leave and Overtime. 1. Purpose. To insure that staff members are compensated for overtime worked in accordance with the Fair Labor Standards Act of 1938, as amended, and the Texas Government

More information

The Massachusetts Independent Contractor Law: Serious Problems and Difficult Choices for Businesses in Massachusetts

The Massachusetts Independent Contractor Law: Serious Problems and Difficult Choices for Businesses in Massachusetts The Massachusetts Independent Contractor Law: Serious Problems and Difficult Choices for Businesses in Massachusetts By Robert M. Shea MORSE BARNES -BROWN PENDLETON PC The law firm built for business.

More information

FLSA WHITE-COLLAR REGULATIONS

FLSA WHITE-COLLAR REGULATIONS FLSA WHITE-COLLAR REGULATIONS May 2004 www.morganlewis.com Philadelphia Washington New York Los Angeles San Francisco Miami Pittsburgh Princeton Chicago Palo Alto Harrisburg Irvine Boston London Tokyo

More information

Stephen F. Austin STATE UNIVERSITY

Stephen F. Austin STATE UNIVERSITY Stephen F. Austin STATE UNIVERSITY FLSA Exemption Test Worksheet Executive, Professional, Computer, and Administrative Exemption Tests Federal law provides that employees may be exempt from the overtime

More information

FLSA Proposed Exemption Changes Are Here: Learn How To Impact the Final Rule and How the Changes Impact You

FLSA Proposed Exemption Changes Are Here: Learn How To Impact the Final Rule and How the Changes Impact You FLSA Proposed Exemption Changes Are Here: Learn How To Impact the Final Rule and How the Changes Impact You Squire Patton Boggs Webinar Series Jill S. Kirila, Partner E: jill.kirila@squirepb.com T: 614.365.2772

More information

FLSA WHITE COLLAR EXEMPTIONS

FLSA WHITE COLLAR EXEMPTIONS FLSA WHITE COLLAR EXEMPTIONS Presented by William S. Myers Eckert Seamans Cherin & Mellott, LLC Human Resources Forum May 8 & 16, 2014 FLSA White Collar Exemptions Where They ve Been, Where They re Going

More information

wage & hour laws 101

wage & hour laws 101 wage & hour laws 101 Table of Contents New Overtime Rules Proposed: What You Need to Know Now...3 The Department of Labor (DOL) has proposed changes to the overtime exemptions under the Fair Labor Standards

More information

Employee vs. Independent Contractor: Protecting Your Company

Employee vs. Independent Contractor: Protecting Your Company Attorney Stephen A. DiTullio DeWitt Ross & Stevens S.C. 2 E. Mifflin Street, Suite 600 Madison, WI 53703 (608) 252 9362 sad@dewittross.com 1 Background Facts & Statistics 60% of all businesses use independent

More information

Mastering Payroll Compliance THE TOP 10 MISTAKES THAT COST EMPLOYERS MONEY

Mastering Payroll Compliance THE TOP 10 MISTAKES THAT COST EMPLOYERS MONEY Mastering Payroll Compliance THE TOP 10 MISTAKES THAT COST EMPLOYERS MONEY EXECUTIVE SUMMARY Businesses pay government agencies millions of dollars each year in compliance penalties. And in this economy,

More information

Policies of the University of North Texas Chapter 5. Human Resources. 1.4.2 Compensatory Leave and Overtime

Policies of the University of North Texas Chapter 5. Human Resources. 1.4.2 Compensatory Leave and Overtime Policies of the University of North Texas Chapter 5 1.4.2 Compensatory Leave and Overtime Human Resources Policy Statement. To insure that staff members are compensated for overtime worked in accordance

More information

LABOR AND EMPLOYMENT BULLETIN April 27, 2004

LABOR AND EMPLOYMENT BULLETIN April 27, 2004 ANTITRUST APPELLATE BANKRUPTCY, RESTRUCTURINGS & CREDITORS RIGHTS BUSINESS CASUALTY CIVIL RIGHTS CLASS ACTION COAL AND NATURAL GAS CONDEMNATION, LAND USE AND WATER RIGHTS CONSTRUCTION CONSUMER FINANCIAL

More information

Alert. Client PROSKAUER ROSE LLP. DOL s Fair Pay Overtime Rules Alter The White Collar Exemption Regulations

Alert. Client PROSKAUER ROSE LLP. DOL s Fair Pay Overtime Rules Alter The White Collar Exemption Regulations PROSKAUER ROSE LLP Client Alert DOL s Fair Pay Overtime Rules Alter The White Collar Exemption Regulations On April 23, 2004, the United States Department of Labor ( DOL ) published long-awaited final

More information

At-will employment is a fundamental principal of US employment:

At-will employment is a fundamental principal of US employment: At-will employment is a fundamental principal of US employment: Most US employees are employed at-will meaning that an employee can leave his or her employment at any time without notice, for any reason

More information

COLORADO DEPARTMENT OF LABOR AND EMPLOYMENT 1515 Arapahoe Street Denver, Colorado 80202-2117

COLORADO DEPARTMENT OF LABOR AND EMPLOYMENT 1515 Arapahoe Street Denver, Colorado 80202-2117 COLORADO DEPARTMENT OF LABOR AND EMPLOYMENT 1515 Arapahoe Street Denver, Colorado 80202-2117 MEMORANDUM Effective Date: 07/06/89 Supersedes: Revision Date: Director's Approval (Date): Under Revision: Document

More information

THE DOL S PROPOSED SALARY REGULATIONS

THE DOL S PROPOSED SALARY REGULATIONS THE DOL S PROPOSED SALARY REGULATIONS How to Fight Them, Plan For Them and Live With Them Ben H. Bodzy bbodzy@bakerdonelson.com 615.726.5640 (direct) STARTING AT THE BEGINNING... WAGE & HOUR LAW The Fair

More information

Being a Paralegal in California: Who Qualifies, and Can A Paralegal Be Exempt From Overtime Under the Learned Professionals Exemption?

Being a Paralegal in California: Who Qualifies, and Can A Paralegal Be Exempt From Overtime Under the Learned Professionals Exemption? Being a Paralegal in California: Who Qualifies, and Can A Paralegal Be Exempt From Overtime Under the Learned Professionals James L. Morris Partner, Employment and Labor Kathy Miller, CP, CAS Employment

More information

HR Challenges Facing Small Business Owners

HR Challenges Facing Small Business Owners HR Challenges Facing Small Business Owners In my experience working with small businesses, I find that they usually spend countless hours searching the internet for answers to their HR problems. This is

More information

Strategy & Insights Energy Employment Law Group

Strategy & Insights Energy Employment Law Group Strategy & Insights Energy Employment Law Group Guidance For Employers In The Energy Industry To Avoid Common Wage & Hour Traps Through aggressive investigation and enforcement initiatives, the Department

More information

The most significant changes in the federal regulations include the following:

The most significant changes in the federal regulations include the following: The New Federal Overtime Exemptions 1 Employment Roundtable By Stacey Mark Chair, Labor & Employment Group and Chair, Sustainable Practice Advisory Group June 17, 2004 On April 23, 2004, the U.S. Department

More information

Explaining Obama Administration s Overtime Expansion Proposal for Department of Labor s Overtime Exemptions

Explaining Obama Administration s Overtime Expansion Proposal for Department of Labor s Overtime Exemptions Explaining Obama Administration s Overtime Expansion Proposal for Department of Labor s Overtime Exemptions PowerPoint presentation via National Journal National Journal Presentation Credits Producer:

More information

Fair Labor Standards Act Decision Under section 4(f) of title 29, United States Code

Fair Labor Standards Act Decision Under section 4(f) of title 29, United States Code U.S. Office of Personnel Management Office of Merit Systems Oversight and Effectiveness Classification Appeal and FLSA Programs San Francisco Oversight Division 120 Howard Street, Room 760 San Francisco,

More information

1099 Compliance: Avoid worker misclassification and save your company from financial disaster. Highlights include:

1099 Compliance: Avoid worker misclassification and save your company from financial disaster. Highlights include: 1099 Compliance: Avoid worker misclassification and save your company from financial disaster. Highlights include: FedEx and Microsoft s Misclassification Legal Battles Factors to Determine Independent

More information

LONGER HOURS, LESS PAY

LONGER HOURS, LESS PAY Brief ing Paper LONGER HOURS, LESS PAY Labor Department s new rules could strip overtime protection from millions of workers by Ross Eisenbrey July 2004 On April 23, 2004 the Department of Labor (DOL)

More information

Following is a restatement of the primary duties of the six paralegals you describe:

Following is a restatement of the primary duties of the six paralegals you describe: December 16, 2005 FLSA2005-54 Dear Name* : This is in response to your request for a formal opinion on the application of Section 13(a)(1) of the Fair Labor Standards Act (FLSA) to several paralegals employed

More information

FREQUENTLY ASKED QUESTIONS FLSA CHANGES FOR 2016

FREQUENTLY ASKED QUESTIONS FLSA CHANGES FOR 2016 FREQUENTLY ASKED QUESTIONS FLSA CHANGES FOR 2016 1. What is the Fair Labor Standards Act? The Fair Labor Standards Act (FLSA) of 1938 (29 USC 201 et seq.) is the United States federal wage and hour law,

More information

Avoiding Wage and Hour Liability in 2014. Presented By: Whitney M. Harmon, Esq. Baker Donelson Bearman Caldwell & Berkowitz Wharmon@bakerdonelson.

Avoiding Wage and Hour Liability in 2014. Presented By: Whitney M. Harmon, Esq. Baker Donelson Bearman Caldwell & Berkowitz Wharmon@bakerdonelson. Avoiding Wage and Hour Liability in 2014 Presented By: Whitney M. Harmon, Esq. Baker Donelson Bearman Caldwell & Berkowitz Wharmon@bakerdonelson.com Wage and Hour Trends Agency Enforcement Private Enforcement

More information

They re Here: DOL s Revised Exemption Regulations

They re Here: DOL s Revised Exemption Regulations They re Here: DOL s Revised Exemption Regulations May 18, 2016 Alex Passantino, Richard Alfred, Brett Bartlett, Noah Finkel Seyfarth Shaw LLP Seyfarth Shaw refers to Seyfarth Shaw LLP (an Illinois limited

More information

FLSA OKLAHOMA POLICY GUIDELINES. THE UNITED STATES FAIR LABOR STANDARDS ACT Revised July 2004. State of Oklahoma Office of Personnel Management

FLSA OKLAHOMA POLICY GUIDELINES. THE UNITED STATES FAIR LABOR STANDARDS ACT Revised July 2004. State of Oklahoma Office of Personnel Management OKLAHOMA POLICY GUIDELINES FLSA THE UNITED STATES FAIR LABOR STANDARDS ACT Revised July 2004 State of Oklahoma Office of Personnel Management Oscar B. Jackson, Jr., Administrator and Cabinet Secretary

More information

Educational Purposes Only - 1

Educational Purposes Only - 1 Educational Purposes Only - 1 In this Guide About this Guide 2 Fair Labor Laws and Policy at UAB 3 Nonexempt and Exempt Status 4 Managing Nonexempt and Exempt Employees _ 5 Paid Time 5 Recordkeeping 6

More information