The new "white-collar" regs, like the old ones, require the employer
to prove that the exempt employee satisfies three tests: the salary level test, the salary basis test, and the job duties test. Last month, we discussed the administrative exemption, with emphasis on the job-duties test. This month, we discuss the salary basis test, which applies to executives, administrators, and professionals.
A job title alone is insufficient to establish the exempt status of an employee. Rather, says the DOL, "The exempt or nonexempt status of any particular employee must be determined on the basis of whether the employee's salary and duties meet the requirements of the regulations."
The numbers are in, and BLR's 2004 Survey of Nonexempt Compensation reveals increasing wages in most of the hourly jobs examined. The big winners: drivers and guards.
With only a week or two before the expected unveiling of new overtime definitions
in the Fair Labor Standards Act (FLSA), employers have lots of questions. Among
them: How drastic will the changes be? How much will it cost to implement them?
They got some clues when U.S. Wage and Hour Administrator
Tammy D. McCutchen spoke recently to the Society for Human Resource Management?s
annual Employment Law & Legislative Conference in Washington, D.C.
Radio Shack, Farmer's Insurance, Taco Bell, and the United Parcel Service.
What do all of these companies have in common? Unfortunately, they have all
recently been forced to pay legal settlements ranging from $9 million to $90
million for violations of the Fair Labor Standards Act (FLSA).
Approximately 150 Congressional Democrats and many labor unions have called for the Bush administration to withdraw its proposal to update the Fair Labor Standards Act’s (FLSA) regulations.
Under the government's proposed changes to FLSA regulations, many of your exempt status employees may become non-exempt due to increases in salary thresholds or changes in the various duties tests. Here's the lowdown.
