11/ 07/ 2005
from the U.S. Department of Labor
On Aug. 24, 2004, the U.S. Department of Labor revised the overtime exemption rules. The Fair Labor Standards Act classifies employees as either exempt or non-exempt. Non-exempt employees must receive an overtime wage for hours worked more than 40 per week. Previously, certain employees qualified for exemption from the FLSA overtime requirements, depending on their salary and job duties. However, the exemption rules were confusing, complex and outdated. The new FairPay regulations update the exemption classifications and grant certain employees greater overtime protections.
Businesses can find assistance in complying with the new regulations on DOL’s FairPay Web Site. This site provides tools to help employers comply. The FairPay Video Seminar offers a downloadable training seminar that runs approximately one hour and includes five different videos, each addressing a separate provision of the FairPay regulations. Topics covered include the executive exemption, professional exemption, administrative exemption and salary requirements. You can view videos separately to learn about a specific exemption requirement or download the entire seminar. As each video plays, a slide show appears alongside with a synchronized transcript below that links to cited authorities and regulations. You can use the videos to educate and train employees.
The FairPay Web Site also offers informational fact sheets organized by exemption or occupation. Nine exemption fact sheets, including one in Spanish, cover executive, administrative, professional, highly compensated, salaried and other exemption classifications. Each provides the salary and job duty qualifications for exemption, along with definitions for each requirement. The site also provides nine occupational fact sheets that define the different employment classifications. Additional fact sheets for blue-collar workers, veterans, nurses, construction workers, journalists and other occupations describe the employment classification and whether the new FairPay regulations affect that category.
Employers unsure about whether an employee is exempt from overtime requirements can use the Department of Labor’s interactive FLSA Overtime Security Advisor. To qualify for an FLSA exemption, an employee must meet the job duties and salary requirements. The Advisor assists employers in making this judgment by asking questions to determine whether an employee is exempt.
It works like this. First, the employer answers questions in a compensation requirements section about the type of compensation the employee receives. This section reviews the law and answers frequently asked questions about base pay, deductions, bonuses, high compensation and types of leave. If the employee meets the compensation qualifications, then the employer answers questions about job duties. Afterwards, the Advisor decides whether the employee is likely to be exempt. An Occupational Index helps determine which Advisor to use by defining a large number of jobs and referring the employer to the appropriate one.
With all of the FLSA tools the Department of Labor provides, small businesses can ensure their employment classifications comply with the new regulations. For more help, click on the NFIB/DOL Compliance Assistance link below.
