FLSA of August 23, 2004

Day Dreamer

Is the FSLA for sure going into effect on August 23, 2004? And what will this mean to professionals who are hired to work only 2 or 3 days a week for a fee. We have part-time instructors who may teach only one or two courses per term. Must we pay them hourly to keep from having to pay full time wages for a part-time instructor?

System

Welcome to the Forum, Day Dreamer.

The only thing that might change on Aug. 23 is the rules for figuring which employees are exempt (you don't have to pay OT). The new regulations will go into effect unless Congress takes decisive action to stop it, but politicians' spines usually get weaker as the election gets closer. So I'm betting Congress won't do anything to stop the regulations.

If you're now paying your instructors as exempt employees, you can keep doing it if they meet the regulations' new definitions of exempt.

The big problem I see is that the new regs raise the minimum pay for exempts to $23,660. Does anyone know if there's an exception for part-timers?

You also can pay a salary to nonexempt ees as long as it doesn't go below minimum wage.

Hope this helps -- the FLSA makes me dizzy. xflash

James Sokolowski
HRhero.com

Hatchetman

US DOL holds that the salary threshold still must be met for part time employees. The threshold is NOT reduced because of the part time status. This includes the $455 for the Fair Pay regs.

hhaynal

Correct me if I am wrong, but it was my understanding that the new regulations did NOT impose any minimum compensation for outside sales, TEACHERS, and employees practicing law or medicine. If my understanding is correct, then your instructors may not be affected by the minimum pay requirement.

Hatchetman

Under current FLSA regulations and the new Fair Pay regulations, doctors, lawyers, and school teachers who are practicing in their professions are not required to be salaired in order to be exempt. So, they may be paid in any manner, including hourly, if the employer wants to do that. However, check yor state wage and hour laws as they may restrict that -- as in California where onoy physicians practicing in their profession do not have to be salaried.