Overtime Regulations

In August of 2004 new overtime regulations went into effect under the Fair Labor Standards Act (FSLA). Based on the type of work performed and the salary earned, the recent overtime revisions are aimed to streamline policies mainly for those in white collar occupations. Many other industry specific regulations remain unaffected by the new laws. A new salary limit of $455 weekly or $23,660 annually has been established making some executive administrators who earn more exempt from overtime pay. Two tests were created to determine which types of workers are exempt. The Executive Exemption Test applies to all executives, whose primary duty is managing the enterprise, supervising two or more employees, or making the hiring and firing decisions. The Administrative Exemption Test applies to administrative workers who mainly work in the office or through business operations of the employer's customers or exercising discretion and independent judgment.

Fast Facts

  • Small market radio and television stations for announcers, news editors, and chief engineers remain unaffected by the new rules.
  • Those who meet the first test work in areas as accounting, human resources, database administration and the like.
  • Creative or analytical newspaper, television, or magazine employees are exempt, but those who just process news information are not.

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