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

handle is hein.journals/laboemplo45 and id is 1 raw text is: 

















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              FALL 2016
VOLUME   45,  NUMBER   1
     Section of Labor and
         Employment  Law
American  Bar Association


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New FLSA Overtme Ru es


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New FLSA Overtime Rules


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   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

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