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Wondering about the new overtime laws...

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Wondering about the new overtime laws...

Old 08-22-04, 01:04 PM
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Wondering about the new overtime laws...

Here's the exemptions for the new labor law that goes into effect on 8/23/04.

http://www.dol.gov/esa/regs/compliance/whd/whdfs17.htm

So if you make less than $23,660 a year ($455 per week), it's supposed to guarantee you overtime pay at time and a half. They refer to this Fair Pay Overtime Initiative. The way it's worded, it sounds like it's only exempting salaried people. Now I thought that, if you were on salary, you only get paid a certain amount a week no matter how much you work. You don't get overtime in a salaried job anyway. So why would they need this law? They say to protect 6.7 million people and provide overtime to 1.3 million low wage employees who didn't get overtime with the old laws. Now I was under the impression that anyone on hourly receives overtime no matter what. So I was under the impression that all this stuff was covered ages ago. Why the new law? I think it clearly defines positions that can be salaried and you'll see a lot more companies making jobs over that $23,660 a year a salaried job. Maybe this opens up more positions for that to be done to. I'm not sure but it seems weird to me. Information is scarce on this new law on all the other websites. So is this just redundancy, a wolf in sheeps clothing act that will bite workers in the ass down the road, or was there a bunch of people getting screwed on overtime by the old laws?
Old 08-22-04, 01:49 PM
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Being salaried did not automatically make you exempt. For example in engineering, the drafting guys were non-exempt and had to be paid every second of overtime including door-to-door if they had to travel on company business. Virtually all engineers were exempt. Minor amounts of overtime were considered "casual" and part of being a professional; they were not paid. If the company scheduled it, or really pushed people to work, they were paid even though exempt and salaried. The rate, however, varied between straight time and time-and-a-half depending on salary level. For more senior management (bonus eligible) it was all casual -- we could work as many hours as we wanted, as long as it was over 40 (or 50!)
Old 08-22-04, 02:04 PM
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From what I understand, some salaried employees were not paid overtime if they made over 8000 dollars. That figure was set 30 years ago. It really isn't applicable today. So they raised the figure to around 23000 dollars. I guess the wording of the change is very vague and most people are having a difficult time understanding it. I got my information from the Des Moines Register, I assume the numbers apply to everyone in the country, not just Iowa.
Old 08-22-04, 02:12 PM
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That's true. They raised the limit where there is no debate, people are automatically non-exempt based on pay. They also tried to clarify the text on whether one had enough responibility, supervisory authority, or was a "learned professional" to decide between exempt and non-exempt at all higher salary levels. I think it is fair to say it is still confusing and we will have to see how companies, courts, etc interpret it.

To OP, as far as I know, if you are hourly, overtime is automatic, or if represented by a union and it is part of union contract.
Old 08-22-04, 04:57 PM
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The hub is salaried, but makes overtime. He is a non-exempt employee.

When he works weekends, he gets time and a half on saturdays and double time on sundays.
Old 08-22-04, 06:26 PM
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I read through a white papers release of the new changes (last month), and it is indeed still confusing.

-pedagogue
Old 08-22-04, 10:05 PM
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Originally posted by LilyLilyRose
From what I understand, some salaried employees were not paid overtime if they made over 8000 dollars.
I can assure you this is the case. The entire months of April and May, and for 3 weeks in February (all this year), I worked ~100 hrs/wk with no overtime (they were able to get it to under the 96 hr limit by claiming 1 hr lunches, eventhough I didn't leave site and really didn't have them).

The entire management and engineering staff worked these hours: 14.5 hrs/day, 7 days/wk with half on nights and half on days for full coverage.

It wasn't that bad until our intern mentioned that she pulled in ~$25,000 in overtime alone between time and a half and double time. Interns are non-exempt.
Old 08-23-04, 09:26 AM
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Originally posted by matta
I can assure you this is the case. The entire months of April and May, and for 3 weeks in February (all this year), I worked ~100 hrs/wk with no overtime (they were able to get it to under the 96 hr limit by claiming 1 hr lunches, eventhough I didn't leave site and really didn't have them).

The entire management and engineering staff worked these hours: 14.5 hrs/day, 7 days/wk with half on nights and half on days for full coverage.

It wasn't that bad until our intern mentioned that she pulled in ~$25,000 in overtime alone between time and a half and double time. Interns are non-exempt.
Man, that sucks. It was obviously scheduled. They didn't pay anything, not even straight time?

It was a sore point in my company, but anything clearly scheduled was paid. "Casual" was staying a little over occasionally to finish a report, meeting, etc, not leaving a meeting at 4:30 when the whistle blew, like in Germany. HR created some guidelines that consistently averaging more than one hour a day for engineers, two for supervisors was either scheduled, or abuse.
Old 08-23-04, 03:19 PM
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I do not get who is going to loose overtime pay. It seems like lower paid people at Wal Mart, Fast Food ect who are listed as managers are going to now get paid overtime or now get a raise. I worked for a Randalls for five years after school and I know the starting salary pay was less than 25 and you worked close to 70 hours a week.

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