New federal rules revise overtime limits.
The regulations, which should take effect August 23, 2004, clarify and simplify the tests for determining whether the white collar exemption applies to a particular employee, raise the minimum salary requirement for exempt employees and clarify the educational requirements for classifying an employee as an exempt professional. The rules also allow employers to deny overtime to "highly compensated" employees who have minimal exempt responsibilities and earn $100,000 or more annually. The department estimates there may he as many as 107,000 such workers. The final regulations and an online seminar covering key provisions are available at www.dol.gov/esa/regs/compliance/ whd/fairpay/main.htm. (At press time, the Senate had just approved an amendment to the FLSA that would prevent the regulations from taking effect. Yet even if the House of Representatives also passes that measure, the President could veto it, leaving the new rules intact. A two-thirds majority in both the Senate and the House is necessary to override such a veto.)
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|Publication:||Journal of Accountancy|
|Date:||Jun 1, 2004|
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