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The Department of Labor has issued new
regulations concerning overtime pay. These regulations cover more
employees than ever before.
In general, most employees in the
United States must be paid at least the federal minimum wage for all
hours worked and overtime pay at time and one-half of the regular rat of
pay for all hours worked over 40 hours in a workweek. This does
not require overtime to be paid for weekend or holiday work.
Certain bona fide executive, administrative, and professional, computer
and outside sales employees are exempt form both the minimum wage and
the overtime pay rules. To qualify for this exemption, the
employees must meet certain tests regarding their job duties and be paid
on a salary basis at not less than $455 per week.
The regulations make clear and
guarantees that that blue-collar workers are not exempt from the
overtime rules and explicitly protects the rights of union workers who
receive overtime pay pursuant to a collective bargain agreement.
Executives who earn a salary of more
than $455 per week and who's primary duty must be managing the
enterprise or subdivision of the enterprise; who customarily direct the
work of 2 or more full time employees; and have the authority to hire or
fire employees in order to be exempt from the overtime rules.
Administrative employees who earn a
salary more than $455 per week and their duties must be the performance
of office or non-manual work directly related to management: and
the duties require the exercise of discretion and independent judgment
on significant matters are exempt form the overtime rules.
Professional employees who earn a
salary of at least $455 per week and who's primary duties require
advanced knowledge in a field of science or learning requiring advanced
education, and is intellectual in nature are exempt from the overtime
rules.
Computer employees who earn more than
$455 per week and are employed as a systems analyst, programmer,
software engineer or similar position: and design, develop, test,
create, or modify software are exempt from the overtime rules.
Outside sales employees primary duties
must be making sales for compensation and the employee must customarily
and regularly be away from the employers place of business to be exempt
from the overtime rules.
If you have any questions concerning
these new rules, please call or e-mail our office. |
