Friday, August 13, 2004

Overtime/ White-collar Exemption Alert

Thompson-West law publishers issued a memo yesterday saying that “a recent report issued by three former Department of Labor officials on the new Fair Labor Standards Act white-collar exemption regulations alleges that more workers will lose their overtime pay protection when the new rules take effect on August 23rd.

The report, part of a study commissioned by the AFL-CIO, “notes that judging the exemption status of a worker based on his or her ‘most important duty’ is much more subjective than examining how much time that person spends doing exempt work. As a result, the report concludes, employers will be able to classify more employees as exempt and thereby avoid having to pay them overtime wages.

“Meanwhile, a study recently released by the Economic Policy Institute (EPI), a Washington, D.C.-based liberal think tank, estimated that nearly six million workers will lose their right to overtime pay under the new regulations.” (http://www.epinet.org/briefingpapers/152/bp152.pdf )

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