Summer 2004-08 The minimum you need to know about employee compensation and benefits

Number 56
Summer 2004

New overtime pay standards promulgated

On April 23rd the U.S. Department of Labor made public its final changes to the Fair Labor Standards Act “white collar” exemption regulations, and set a deadline of August 23 for employers to achieve compliance.

August 23 deadline

Beginning on August 23, and with the exception of doctors, lawyers, teachers, filmmakers and certain software professionals, most workers who are paid less than $23,660 per year will be considered “non-exempt” workers and therefore subject to the FLSA’s overtime pay rules.

What to do next

Among the many steps every employer should take to comply with the DOL’s new rules we suggest the following:

Ensure compliance with the salary basis test;

Train the payroll department;

Re-classify highly compensated workers;

Revise job descriptions;

Check professions according to the new DOL’s guidance and definitions;

Document exemption;

Revise policies and handbook;

Comply with the new ‘safe harbor’ rule;

Correct any past errors;

Perform a self-audit; and

GET HELP!

© 2004 Goldman Antonetti & Cordóva, LLC