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45 Lab. & Emp. L. 1 (2016-2017)

handle is hein.journals/laboemplo45 and id is 1 raw text is: loyment FALL 2016 VOLUME 45, NUMBER 1 Section of Labor and Employment Law American Bar Association Section of Labor and Employment Law plyers' oncerns with By William Pokorny By Bradley Manewith When the U.S. Department of Labor published its long-awaited Final Rule more than doubling the minimum salary thresholds for the executive, administrative, and professional exemptions under the FLSA, labor groups applauded or suggested that the Department should have gone even further in limiting the exemptions, while business and employer groups spoke out in opposition to the new regulatory burden. The DOL responded to criticism from the employer community by mini- mizing the burden on employers. Wage and Hour Administra- tor David Weil published a blog post characterizing common employer concerns as myths. (https://blog.dol.gov/2016/05/26/ behind-the-myths-the-truth- about-overtime/, published May 26, 2016, last visited July 25, 2016). However management lawyers who counsel employers on wage and hour compliance issues every day seem to agree that: 1. Employers have legitimate concerns about the new rules. Their worries are not myths. 2. The changes resulting from Published in Labor and Employment, Volume 45, Nurr may not be copied or disseminated in any form or by e the new rules will not be welcomed by all affected employees. 3. The rules are likely to result in additional litigation, at least in the short-term. The main concern from employ- ers is that the new rules take away flexibility in how they com- pensate and manage certain employees. This is actually the point: labor regulations take cer- tain options off the table in order continued on page 7 The U.S. Department of Labor's recently announced final rule regarding the overtime exemption for executive, admin- istrative, and professional employees will go a long way towards restoring the ideals behind the Fair Labor Stan- dards Act (FLSA). Workers will no longer be forced to work fifty plus hours per week while paid a salary of $30,000 or less per year. This works out to a rate of twelve dollars or less per hour, which is only slightly higher than many states' mini- mum wage. Retail and restaurant managers, administrative assis- tants, and customer service representatives are examples of workers that commonly met this description. Often times, these individuals are their families' primary or sole wage earner, and thus cannot afford to be out of a job. As a result, they have little choice but to accept the minimum salary being offered by their employers, and to work the long hours required of them. It is the classic case of a Catch 22. Given this paradox, the updates are long overdue and necessary. The purpose of the FLSA in general and overtime in particular, is to ensure that employers do not subject their employees to excessive work- hours, unless they are willing to fairly compensate their employ- ees for the time they are forced to work instead of focusing on other important aspects of their lives. The pre-amendment continued on page 10 its reserved. This information or any portion thereof isent of the American Bar Association.

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