Monday, August 23, 2004

New Overtime Rules

Via USAToday:

  • Almost all employees who make less than $455 a week ($23,660 a year) are eligible for overtime. The old rule set overtime for anyone who made less than $250 a week. The new rule applies whether the employee is blue collar or white collar, or whether they supervise people of not. The exception for this rule is teachers, doctors and lawyers. They do not get overtime, no matter what they are paid.
  • Any employee who earns more than $100,000 a year is ineligible for mandated overtime, period.
  • Any employee who earns between $23,660 and $100,000 a year, and who is in most executive, professional, or administrative positions, is not eligible for overtime. This does not, however, apply to salespeople. They are still eligible.
  • Managers are not entitled to overtime if they oversee two or more people and have the authority to hire, fire, or recommend that someone be hired or fired.
  • Administrative employees who have decision-making power and run some sort of operation are not eligible.
  • Employees whose job requires imagination, invention, originality, or artistic or creative endeavors are not eligible for overtime.
  • Employees whose main duties are computer-related and involve the implementation, analysis, development, or application of computer systems or designs are also not eligible for overtime.
  • Sales staff that regularly work outside of the employer's place of business are, you guessed it, not eligible either.

That information from USAToday pretty much answered all my questions, but if you need more information, I would direct you to the US Department of Labor.

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