91制片 Files Comments in Response to Dept of Labor Proposed Changes to Overtime
November 08, 2023
91制片 joined Association of Educational Service Agencies and Association of School Business Officials International in a joint letter responding to Department of Labor鈥檚 proposed changes to the overtime rules.
Background: The Fair Labor Standards Act (FSLA) requires employers to pay their employees at least a minimum hourly wage, which is set by the statute, and an 鈥渙vertime鈥 rate of 1.5 times the employee鈥檚 regular hourly wage for every hour the employee works over 40 hours in a given week. The statute exempts certain categories of employees from these requirements, including executive, administrative and professional employees (sometimes referred to the 鈥淓AP鈥 or 鈥渨hite collar鈥 exemption). The FLSA tasks DOL with defining executive, administrative and professional employees by regulation and requires the department to revisit these definitions from 鈥渢ime to time.鈥 Under the regulations, an individual must satisfy three criteria to qualify as a white-collar employee exempt from federal overtime pay requirements: first, they must be paid on a salaried basis (the salary basis test); second, that salary must meet a minimum set by DOL (the minimum salary requirement or salary threshold); and third, their 鈥減rimary duties鈥 must be consistent with executive, professional, or administrative positions as defined by DOL (the duties test). Employees who do not meet all three requirements or fail to qualify for another exemption must be treated as 鈥渉ourly鈥 or 鈥渘onexempt鈥 employees and must be paid for each hour worked and, for all hours worked over 40 in a given workweek, at a rate of one and a half times employee鈥檚 normal hourly pay (this premium pay rate is known as 鈥渙vertime pay鈥). To ensure employees are paid for all hours worked and at the proper rate for overtime, employers must carefully track the hours nonexempt employees work.
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