Working Overtime With
the New FLSA Rules

08/20/08

As of August 23, 2004, the Department of Labor updated its Fair Labor Standards Act (FLSA) rules regarding overtime pay for the first time in 50 years. These controversial white-collar Fair Pay rules may be causing you confusion over which employees are or aren’t exempt from overtime. Here is a brief checklist that may help you get up to speed:

• Identify employees earning less than $23,660. These workers are automatically entitled to overtime (with narrow exceptions for teachers, doctors, lawyers and outside salespeople).

• Identify employees earning $100,000 or more. Generally, these employees can be classified as exempt from overtime pay.

• Conduct a thorough job analysis. A comprehensive job analysis based on the new “duties tests” can determine which employees may be classified as performing administrative, professional or executive duties.

• Revise job descriptions. After the job analysis, revise position descriptions to reflect work performed and skills required, especially for those with a change in status.

This list is far from being all-inclusive. For any employees undergoing a status change, be sensitive in conveying the news and have a clearly defined communication policy.

G.Neil has created several new tools to help you understand and implement the new FLSA changes. Contact a G.Neil HR Specialist at 1-800-999-9111 or visit www.gneil.com/wk/flsa.