New Overtime Law Now in Full Force…

New rules from the Department of Labor (DOL) that govern overtime pay for exempt and non-exempt white-collar workers took effect last month. The exemption from minimum wage and overtime pay, included in the Fair Labor Standards Act, requires that most employees in the United States be paid at least the federal minimum wage for all hours worked and overtime pay at a rate of time-and-a-half the regular rate of pay for all hours worked over 40 hours in a work week.

The law provides an exemption from both minimum wage and overtime pay for employees employed as bona fide executive, administrative, professional, and outside sales employees, along with certain computer employees.

To qualify for exemption, the DOL says, employees generally must meet certain tests regarding their job duties and be paid on a salary basis at not less than $455 per week ($23,600 annually).

Job titles do not determine exempt status. In order for an exemption to apply, an employee's specific job duties and salary must meet all the requirements of the department's regulations.

Under the current rule, all white collar (non-production) workers who earn less than $155 weekly ($8,060 annually) must be paid overtime, regardless of their job duties.

The Printing Industries of America (PIA) reports that the increased minimum salary should have little impact for most employers because most employees in the printing industry who earn between $155 and $455 a week are classified as non-exempt and already receive overtime pay. However, if a company has exempt employees who earn less than the minimum salary amount, a company must either begin paying overtime or raise the employee's salary above the minimum threshold.