New Overtime Rules to go into Effect Soon
By Evelyn P. Schonberg
The new regulations changing the overtime rules will become effective on August 23, 2004, barring some last minute legislation. These new regulations update the three tests that determine whether an employee meets an exemption from the requirement to pay overtime - the salary level test, the salary basic test and the duties test (also commonly known as the executive, professional or administrative test). The minimum salary level was last updated in 1975 and the duties test was last updated in 1949. Obviously, these new regulations are long overdue and will finally provide updated and hopefully better guidance for jobs of the 21st century.
There are many other changes and modifications to the existing overtime rules. Every business must take this opportunity to review their existing exempt positions and ensure that they remain exempt under the new rules. Conversely, a review should also be conducted to determine whether other positions that were previously not exempt may very well now be exempt.
If you are interested in learning more about these new changes in the law, our firm will be holding at least one seminar on this subject. Please contact Lynn Schonberg or David Andrews if you are interested in attending.