Complying With the FLSA Overtime Rules — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

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In 2004, new U.S. Labor Department regulations took effect that enacted the most dramatic changes to federal overtime law in more than 50 years.

By updating certain provisions of the Fair Labor Standards Act (FLSA), the agency redefined which white-collar employees are “exempt” under the FLSA (i.e., not eligible for overtime) and which are “nonexempt” (eligible for overtime). Those federal rules clarify and alter both the “salary test” and the notoriously confusing “duties tests” that are used to determine employees’ exemption status.

Following is a detailed breakdown of those exemption categories, adapted from U.S. Labor Department fact sheets. To access Labor’s site on the overtime rules, including its online training seminars, visit www.dol.gov/fairpay.

Also, note that several states have established their own separate overtime-related laws, some in resp...(register to read more)

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