The Department of Labor has issued a far-reaching revision of the basic rules on who does and who doesn't qualify for overtime pay under the Fair Labor Standards Act (FLSA), the federal wage-hour law, but has stepped back from an earlier, more fundamental reworking of the law, according to CCH INCORPORATED, a leading provider of human resources and employment law information.
The proposed changes are expected to cost employers approximately $700 million to implement, but then produce savings of more than $1 billion annually. The original version of the proposed changes was harshly criticized by labor leaders and some legislators, and despite the Department's softening of many provisions, the new rules are likely to be the center of continued controversy. The new rules are expected to take effect in August of this year.
CCH has issued an Employment Law Briefing analyzing the significant changes contained in this much-debated measure in clear, easy-to-understand terms.
Highlights of the Briefing include:
- A chart comparing key provisions of the current and proposed tests for executive, administrative and professional employees;
- An employer "to do" list on implementing the new rules;
- A discussion of the exempt status of journalists; and
- A "two-minute history" that provides essential background on the original purposes of the Fair Labor Standards Act and a perspective for evaluating the proposed changes in light of those purposes.