On August 23, new rules governing overtime eligibility for “white-collar” workers under the Fair Labor Standards Act took effect. These new rules are the first significant changes to the FLSA in nearly a half century; most notably, they seek to update rules regarding which employees are eligible for overtime pay. This page documents the new changes and provides resources for understanding the effect these new rules will have on employers.
If a part-time employee meets the duties test under one of the FLSA exemptions but does not earn a salary of at least $455 per week, that part-time employee may not be considered exempt under the new FLSA regulations. For example, if an employee working in an exempt position works 20 hours per week, the employer may not consider the minimum salary for that employee to be half of $455. Regardless of the number of hours worked per week, the minimum salary requirement for exempt employees is $455 per week.
FLSA Exempt Employee Flowchart.
This exhibit serves as a basic outline for an employer’s initial analysis of positions being considered for exemption under the FLSA and is meant to serve as one of several tools in an employer’s analysis.
Poster and State Labor Department Contacts. Posted in conjunction with a recent SHRM seminar series on the FLSA rules, this resource page has a link to a downloadable poster detailing the FLSA's minimum wage provisions, as well as contact information for state Labor Departments in 50 states, the District of Columbia, Guam and Puerto Rico.
SHRM Webcast: Understanding the New FLSA. Attorney Camille Olson of the law firm Seyfarth Shaw hosts this webcast describing the impact of the new FLSA rules. Sponsored by Ultimate Software. Click hereto view now.
Future Focus: Overtime Demands. Exempt workers' lawsuits for overtime pay could signal forthcoming changes in white-collar employees' expectations about working conditions. (HR Magazine, Nov. 2003)
Legal Privileges Against Compelled Disclosure. This report on conducting HR compliance audits includes general principles employers that are seeking to reclassify employees should keep in mind. (SHRM Legal Report, Oct. 2003)
Fair Labor Standards Act Survey. In March 2003, the Department of Labor issued proposed regulations that overhaul the FLSA’s “white-collar” exemptions. This survey provides comment by HR professionals on those proposed changes, which were subsequently altered significantly. (SHRM Surveys, Aug. 2003)
Employer, Audit Thyself. Examine your company's wage and hour conscience by conducting a self-audit. (HR Magazine, Feb. 2003)
A Primer on DOL Regulations. A general overview of the FLSA and other laws enforced by the U.S. Department of Labor. (SHRM White Paper, July 2002)
FLSA Help Now Available Electronically
A new book from SHRM, The FLSA and Its Updated Exempt Status Regulations, is now available electronically. Electronic access is available within 48 hours of when the order is processed-often much sooner. The price of the BOOK ONLY is $34.95 for members $39.95 for nonmembers. The price of the BOOK+ONLINE ACCESS is $44.95 for member, $54.95 for nonmembers. For more information or to order: click here for the BOOK ONLY; click here for the BOOK + ONLINE ACCESS.
OUTSIDE RESOURCES
The following are useful materials available outside the SHRM web site.
