"proposed" new DOL regulations for exempt/nonexempt
HR in Okla
253 Posts
I have received newsletters with information about proposed changes in FSLA that say this is a proposal with several steps to go before it is approved and law. But then I received info about an audio conference that say "Monday, March 31 the US DOL Wage and Hour Division published SWEEPING new revisions..."
Which is it, a proposal? or a done deal?
Any one have more information?
Happy weekend.
Which is it, a proposal? or a done deal?
Any one have more information?
Happy weekend.
Comments
administration, executive and learned professional.
Greetings from California -- where employment law gets really confusing. I am the editor of the California Employment Law Letter and an attorney from my firm -- Ogletree Deakins -- will be participating in the audioconference you referenced in your note.
Actually, the new 541 Regulations are both a "proposal" and a "sweeping change in the law". Since these are regulations drafted by a federal agency, as opposed to a law passed by Congress, the Department of Labor (DOL) is required to publish their proposal before they take effect and provide for a period of time for ANY interested party to comment. The 541 Regulations were published in the Federal Register on March 31 with a 90 day public comment period. After that period closes, the DOL will review the comments and make any changes believed necessary to the regulations. The DOL is not expected to make significant changes to the 541 Regulations. After that process has been completed, the final regulations will be issued. This is expected to occur by December of this year.
Given the attention that has been generated by these new regulations -- and the dramatic impact they will have on classifying workers as exempt or nonexempt -- I believe that this is a critical topic for all HR professionals.
Joe Beachboard
Since it is not effective yet, I will wait for further information before using the new rules for decision making. My question was precipitated by a position change for an exempt employee to a position that has been non-exempt. She didn't want to give up exempt status because of additional benefits offered to exempt positions. I was hoping the new guidelines might offer some clearer direction.
I classified the position as non-exempt over her protests. Just would be interesting to see if the new guidelines would make any difference.
If you felt her duties now fit a non-exempt status, I would be surprised if the new changes will affect that decision. One proposal is to increase the minimum salary for white collar exempt employees to $425 a week ($10.63 per hour)which they estimate will cause approximately 1.3 million workers to be ineligible for exempt status. The regulations would also allow employers to suspend exempt employees without pay for disciplinary reasons in one-day increments, instead of the current rule that says suspensions can't be less than a week.
There are generally 5 new proposed guidelines, one of which states:
- make exempt from overtime pay employees who supervises two or more workers, have authority to hire and fire, or have an advanced degree or specialised training. Employees making more than $65,000 and performing at least one exempt duty is exempt.
I have a question regarding the above guideline, would having an advanced degree or specialized training alone make an employee exempt?
Additionally, we are an agricultural corporation and were
EXEMPT from the law; but now it reads in contradiction to words in different sections and paragraphs as no longer will be EXEMPT from the FLSA. I asked that DOL spell it out other wise I and other HRs will have a difficult time explaining to our leadership that "Hey, why we were asleep and planting our fields or growing our "piglets" and fish and turkey and sheep, chickens, and cattle, and all consumables, they Fed's made us subject to all provisions of the FLSA whether we wanted to use or not to use FLSA or not.
Pork
A helpful comparison of the principal changes is at:
[url]http://www.dol.gov/_sec/media/speeches/541_Side_By_Side.htm[/url]
The full text of the regs can be found at:
[url]http://www.dol.gov/esa/regs/fedreg/proposed/main.htm[/url]
Brad Forrister
Director of Publishing
M. Lee Smith Publishers