FLSA update looms: What will it mean for overtime pay? — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

FLSA update looms: What will it mean for overtime pay?

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in Centerpiece,Human Resources,Overtime Labor Laws

overtime payPresident Obama has ordered the Department of Labor (DOL) to update the Fair Labor Standards Act provisions that determine which salaried employees are exempt—not eligible for overtime pay—and which are nonexempt—that is, eligible for overtime if they work more than 40 hours per week. The regulations in question define what are known as the executive, administrative and professional exemptions.

The overtime regulations were last updated in 2004 during the George W. Bush administration. With more changes likely on the way (read "Obama wants to expand FLSA overtime rules"), let’s take a look at what the executive, administrative and professional exemptions currently require.

To qualify as exempt, employees generally must meet certain tests regarding their job duties and be paid on a salary basis at not less than $455 per week. (Before 2004, the weekly threshold was just $155 per week.)

Job titles do not determine exempt status...(register to read more)

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