This is from the Department of Labor blog. They are talking about redefining the rules for workers exempt from overtime.
Here is what they say:
How will the overtime rules be updated?
Unless specifically exempt, workers protected by the FLSA must receive overtime pay. The president asked Secretary Perez to update the “white-collar exemptions” that exclude certain professional, executive and administrative employees from having to be paid overtime. To be exempt from overtime under the “white-collar” exemption, a worker must be paid a guaranteed salary of at least $455 per week, and perform certain job duties.
This exemption was originally intended for well-compensated white-collar employees: doctors, lawyers, CEOs – you get the idea. But as a result of changes in the workplace over many decades, and specifically because the rules have not been updated in 10 years, workers earning as little as $23,660 per year can be denied overtime pay under this exemption.
We will soon issue a proposal to update these rules. The proposal will go through a formal notice and comment process, which gives the public and all interested parties the opportunity to provide input.
The above is very misleading. First, as noted the worker’s earnings must be paid as a salary, it does not apply to hourly workers who are most likely to be paid that low level wage. To be denied OT, in addition to salary level there are others tests.
The job must have high-level work and generally must be supervisory or managerial in nature and as the rules from the Fair Labor Standards Act state (below) it is the job duties not the title that matters. Using doctors, lawyers and CEOs as an example of the intent of the law is ridicules. You would think the DOL would reference its own FLSA rules. 😜
I have no idea what the DOL will propose, but at least tell people the truth about where we are today and why we need to change.
From the F●L●S●A● rules:
The duties tests.
An employee who meets the salary level tests and also the salary basis tests is exempt only if s/he also performs exempt job duties. These FLSA exemptions are limited to employees who perform relatively high-level work. Whether the duties of a particular job qualify as exempt depends on what they are. Job titles or position descriptions are of limited usefulness in this determination. (A secretary is still a secretary even if s/he is called an “administrative assistant,” and the chief executive officer is still the CEO even if s/he is called a janitor.) It is the actual job tasks that must be evaluated, along with how the particular job tasks “fit” into the employer’s overall operations.
There are three typical categories of exempt job duties, called “executive,” “professional,” and “administrative.”
Exempt executive job duties.
Job duties are exempt executive job duties if the employee
regularly supervises two or more other employees, and also
has management as the primary duty of the position, and also,
has some genuine input into the job status of other employees (such as hiring, firing, promotions, or assignments).
Supervision means what it implies. The supervision must be a regular part of the employee’s job, and must be of other employees. Supervision of non-employees does not meet the standard. The “two employees” requirement may be met by supervising two full-time employees or the equivalent number of part-time employees. (Two half-time employees equal one full-time employee.)
“Mere supervision” is not sufficient. In addition, the supervisory employee must have “management” as the “primary duty” of the job. The FLSA Regulations contain a list of typical management duties. These include (in addition to supervision):
interviewing, selecting, and training employees;
setting rates of pay and hours of work;
maintaining production or sales records (beyond the merely clerical);
appraising productivity; handling employee grievances or complaints, or disciplining employees;
determining work techniques;
planning the work;
apportioning work among employees;
determining the types of equipment to be used in performing work, or materials needed;
planning budgets for work;
monitoring work for legal or regulatory compliance;
providing for safety and security of the workplace.
QUINNSCOMMENTARY 