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Tuesday, March 25, 2014

Salaried Employees to Become Costly

By Tommy Eden

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
President Obama on March 13, 2014, issued an executive order that the U.S. Department of Labor (DOL) update the overtime regulations to the Fair Labor Standards Act (FLSA) which  change will make millions of currently exempt white-collar employees eligible for overtime pay.   The DOL is already empowers to implement and amend regulations that determine which employees are exempted from overtime.

President Obama’s Executive Order to the Secretary of the DOL directed that “Regulations regarding exemptions from the overtime requirement, particularly for executive, administrative and professional employees have not kept up with our modern economy. Because these regulations are outdated, millions of Americans lack the protections of overtime and even the right to the minimum wage. Therefore, I hereby direct you to propose revisions to modernize and streamline the existing overtime regulations. In doing so, you shall consider how the regulations could be revised to update existing protections consistent with the intent of the FLSA; address the changing nature of the workplace; and simplify the regulations to make them easier for both workers and businesses to understand and apply.”

Currently, to qualify for an overtime exemption, an employee must: (1) earn at least $455 per week (i.e., the salary requirement) and (2) satisfy certain tests relating to actual job duties (i.e,. the job-duties requirement).The DOL changes to the regulations will include, at a minimum, an increase in the $455 weekly earning level to $800 to $900 per week, will likely target the job-duties requirement limiting hands-on work activities.

To qualify for the executive (supervisor) employee exemption currently: (1) an employee’s primary duty must be management of the enterprise in which the employee is employed or of a customarily recognized department or department subdivision; (2) the employee must customarily and regularly direct the work of two or more other employees; and (3) the employee must have authority to hire or fire other employees, or be in a position that effectively recommends those actions.

To make these changes the DOL must first promulgate proposed regulations, publish them and invite comment. Expect quick DOL action.

Common Sense Counsel: Schedule now your own strategic 21st-century human resources planning session to see how your modern work force will be realigned by this coming regulation and answer these questions:  1) how to effectively use team leads and incentives to replace traditional supervisors; 2) how refreshing your vision and value statements can align, energize and motive; 3) how can new mobile technology options daily engage, teach and inform employees; 4) how to daily assign mission critical tasks directly to teams while valuing their feedback; and 5) how to use personality testing to improve talent acquisition  to achieve optimal results and lower risk. White boards, markers and creative thinkers are your tools for business success and survival in times of change.

Tommy Eden is a partner working out of the Constangy, Brooks & Smith, LLP offices in Opelika, AL and West Point, GA and a member of the ABA Section of Labor and Employment Law and serves on the Board of Directors for the East Alabama SHRM Chapter. He can be contacted at teden@constangy.com or 334-246-2901.