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New Overtime Regulations Issued

The Department of Labor has issued new regulations governing the exemptions from overtime for white collar (executive, administrative, professional, outside sales, and computer specialist) employees. The regulations take effect on August 23, 2004. Every employer should:

• Establish and communicate a policy prohibiting improper deductions from the pay of salaried employees;
• Ensure that written conduct policies provide for suspension without pay;
• Change the classification of any salaried white collar employee earning less than $23,660 (or raise the employee’s salary); and
• Re-evaluate the exempt status of any executive or manager that does not have the authority to hire and fire or whose opinions on such matter are not given particular weight.

Contact Marcy R. Frost for assistance in preparing appropriate policies or evaluating exemption status.