Website Launched:  12/26/1994 Last Update:  2/14/2013 The Integrity Center, Inc. "objective risk management services" (972) 484-6140 [ Since 1984 ] HOME Reference Articles   SCREENING Check List Backgrounds TUTORIALS SERVICE MENU FCRA THIS COMPANY Our Methods Why Use Us Myths Pitfalls CHECK MYSELF CHECK NANNY USEFUL LINKS Library Statistics PRESS RELEASE The Integrity News Vol. XII No. 13 ISSN 1081-2717 April 2, 2003 Associated Press via FindLaw News and Commentary March 27, 2003 April 2, 2003 U.S. Labor Department Proposal Would Revamp Overtime Pay Rules "The 1938 Fair Labor Standards Act has not been updated in 28 years. These proposed changes would effect 110 million workers. About 640,000 white- collar workers would lose overtime pay, and over a million low-income employees would begin to earn overtime pay." The regulations will be simplified from 31,000 words to 13,000 words, so that they are easier for employers to follow, and so that the Department of Labor "will  be able to more vigorously enforce the law." A Labor Department spokesperson said that they want both employees and employers to easily understand when an employee is entitled to overtime. It is expected that these changes will be ready to implement at the end of 2003. You need to monitor this development, as it could effect your recruiting, payroll, tax, management, and other systems. Business groups have long complained that the current Labor Department rules, which are very complicated, require overtime pay for already well-compensated and highly skilled professionals. "Workers now are exempt from overtime pay if they earn more than $155 a week, or $8,060 a year, and meet other convoluted, confusing job criteria, such as devoting at least 80 percent of their time to 'exercising discretion' and other 'intellectual' tasks." Under the proposed changes, any worker earning less than $425 a week, or $22,100 a year, would automatically be required to receive overtime pay. "The proposal also clarifies and simplifies definitions of administrative, executive and professional employees that should be exempt from overtime pay. Generally, workers would be exempt under the proposal if they manage more than two employees and have the authority to hire and fire, or they have an advanced degree and work in a specialized field, or they work in the operations, finance, or auditing areas of a company." "With the proposed changes, employers could face $334 million to $895 million in new direct payroll costs for the 1.3 million low-wage workers estimated to become eligible for overtime pay. Overall, businesses could face costs of $870 million to $1.57 billion to implement the new requirements." It is anticipated that the increased productivity from the overtime pay, and fewer lawsuits, "could mean savings of $1.1 billion to $1.9 billion." The Administration is also pursuing other revisions to workplace regulations and programs, including the Family Medical Leave Act (FMLA), job training programs, and unemployment insurance. Employees who work under collective bargaining agreements negotiated by unions would not be effected by the new regulations. Also, companies can choose to pay overtime to exempt workers. EARLIER NEWS ITEMS The Resume    Problem Immigration Reform    Will Mean:    Employers MUST    Enforce    Employment    Eligibility    Verification Economic    Espionage Guerrilla    Reference    Checks The Mobile    Integrity    Connection (tm) NEW U.S.    Law Increases    Employer Risk Time    To    Shred Three New    H.R. 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