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U.S. DOL Revises Wage & Hour Rules

Apr 30, 2004

The U.S. Department of Labor (DOL) recently published a final rule that revises regulations governing overtime eligibility for “white-collar” workers. The FairPay rule expands the number of workers eligible for overtime by nearly tripling the annual salary threshold from $8,060 to $23,660 or less. The rule simplifies and continues exemptions from both minimum wage and overtime for executive, administrative, professional and outside sales employees. It also contains new exemptions for certain computer employees, creative professional employees and highly compensated employees.According to the National Automotive Dealers Association (NADA), the new rule has no impact on other exemptions such as those for salespeople, parts department workers, technicians and commissioned employees. The new rule takes effect August 23, 2004. Dealers are encouraged to review the duties, job descriptions and pay structures of their employees to determine any impact the rule changes many have on their payroll. Generally, to be eligible for a “white collar” overtime exemption, an employee must meet certain job duties and be paid on a salary basis at not less than $455 per week. For further information on the exemptions, please see NADA’s A Dealer Guide To Federal Wage-Hour Law and Equal Pay Act.