Overtime Labor Laws

Federal overtime laws, designed to help end the exempt vs. non-exempt debate, have made things worse. To non-exempt and exempt employees, labor laws continue to confuse.

Business Management Daily can help you comply with federal overtime laws. Learn when you have to pay overtime, and when you don’t.

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The Obama administration’s announcement that it wants to double the salary threshold that makes white-collar managers eligible for overtime pay from the current $23,660 per year to $50,440 comes on the heels of research that says half of America’s salaried employees work more than 40 hours per week.
The HR news on everyone’s radar right now is the U.S. Department of Labor’s proposed regulations resetting the salary basis for exempt employees. But that’s not all the DOL is up to. Buried in those proposed regs was an announcement about technology and overtime that was easy to miss, but which may dramatically alter how you pay some hourly employees.
On July 6, the U.S. Department of Labor officially unveiled the biggest overhaul of overtime law in history. Public comments on the proposal are due by Sept. 4. The final draft will be published after that and may go live as early as Jan. 1. Experts predict an effective date in spring 2016.
The Department of Labor announced its new proposed rule for white-collar overtime pay right as thousands of HR pros were meeting in Las Vegas at the Society for Human Resource Management’s 2015 Annual Conference. Needless to say, it instantly became agenda item No. 1. Here’s some of the reaction at SHRM to the DOL’s bombshell.
The Department of Labor estimates the move will make at least five million more workers eligible for overtime pay if they work more than 40 hours in a week.
Tucked inside the Obama administration’s Semiannual Regulatory Agenda this spring was a Department of Labor initiative worth watching: A Wage and Hour Division effort to study how employees’ after-hours use of technology might affect wages and overtime pay.
Large employers usually have several departments, and it’s common for employees to do work in more than one. But some payroll systems may not catch it when cross-departmental work exceeds 40 hours in a week, separately recording hours worked in each department.

Make sure you back up timecard information. Old-fashioned stamped cards can get lost or damaged. If that happens and an employee alleges she wasn’t paid for all work, the court may take her word—not yours—for how many hours she put in.

The 9th Circuit Court of Appeals had ruled that so-called automobile service advisors are nonexempt under the Fair Labor Standards Act.
Retail and restaurant employers will likely respond to the upcoming rewrite of white-collar overtime rules by converting salaried managers to hourly employees, cutting pay, reducing benefits and bonuses and reducing workers’ hours, according to a new study by the National Retail Federation).
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