 | Susan Selvidge
is an attorney with the law firm of Fleeson, Gooing, Coulson & Kitch, L.L.C. She received her bachelor of arts degree from Washington University in 1963, and her juris doctor from Northwestern University in 1980. Susan joined Fleeson, Gooing, Coulson & Kitch, L.L.C., in 1982, and practices primarily in the areas of employment law representing employers, and general business litigation. |
Legal
2004-08-01 11:28:00
Effect of act on O.T. exemptions
: What will be the effect of the new Fair Labor Standards Act Regulat-ions on overtime exemptions?
ANSWER: The new Fair Labor Standards Act overtime exemption regulations guide employers in the classification of employees for minimum wage and overtime purposes. This article is a summary; the regulations are at 29 CFR Part 541. Either the regulations or your attorney should be consulted before classifying or reclassifying any employees. There are still exemptions for Executives, Administrators, and Professionals, plus there are specific new rules for Computer employees. The new rules are similar to the old rules, but somewhat simplified. The base salary to qualify most employees as exempt is not less than $455 per week. In general, the overtime exemptions apply to white collar office workers, and not blue collar workers.Executives must supervise at least two or more full time employees, or the equivalent in part time employees; have the primary duty of management of a department or subdivision of the business; and have authority to hire/fire/discipline/promote, or at least their suggestions must have particular weight. Some assistant managers may be classified as executives (some non-management work is allowed). [$455 rule applies.]Administrators must have the primary duty of office work related to management or general business operations, and must exercise discretion and independent judgment on matters of significance. ($455 rule applies except for Educational administrators.]Professionals are "learned professionals" such as doctors, lawyers, architects, registered nurses, degreed engineers and accountants, teachers, etc.; mostly jobs requiring at least a four year college degree; or they can perform work requiring "invention, imagination, originality or talent in a recognized field of artistic or creative endeavor" (examples are music, writing, acting and graphic arts). There is a specific discussion of journalists. [$455 rule generally applies except for teachers.]Computer Employees may be exempt professionals, especially systems analysts, programmers and software engineers, depending on job duties. [$455 rule applies.]Outside Sales Employees must have the primary duty of outside sales; and there is no $455 salary requirement.Highly compensated white collar employees (salary no less than $455 per week, plus other compensation to equal or exceed $100,000) are exempt.There are new rules allowing some unpaid disciplinary suspensions without losing the exemption, involving infractions of written policies (i.e., sexual harassment policy).
