The nation’s economy is still on a strong upward trajectory, according to the latest monthly report from the Department of Labor, which showed an increase of 211,000 jobs for the month of April. Unemployment fell to 4.4 percent, its lowest level since May 2007.
April’s strong showing puts economic growth firmly back on track after a miserable March, when only 79,000 jobs were added (revised down from 98,000), and paves the way for the Federal Reserve to hike up the interest rate next month.
Many employers have been wrestling with plans to comply with new U.S. Department of Labor (DOL) overtime rules since last May. That’s when the rules were finalized, with a December 1 compliance deadline. Those new rules included raising the minimum salary overtime exemption to $913 per week from $455. A little more than a week before the deadline for the rules was to take effect, a federal court has issued an injunction, at least temporarily blocking implementation of the changes.
In its decision, the court stated it believes the DOL exceeded its authority in promulgating the rule. In addition, the court said the DOL failed to follow Congress’s intent, which was to reexamine the duties test of the overtime rules, and not to focus solely on the salary level, as the final rules do.
The DOL’s initial response was to state that it “strongly disagrees” with the ruling, and is “currently considering all of our legal options.” A couple of short-term legal scenarios remain possible: The U.S. District Court for the Eastern District of Texas, which issued the ruling, could drop its temporary injunction.
If you have a backlog of projects piling up because there just aren’t enough hours in the day, you may consider hiring interns to help you get caught up. This can be a great idea that provides benefits for your company and the students.
However, if you want help from interns, don’t expect to get it for free. The requirements for unpaid internships are strict. In recent years, there’s been a wave of legal actions taken by those who’ve served as interns. They’ve accused employers of violating the federal Fair Labor Standards Act (FLSA) and/or state laws by not paying them.
The Department of Labor (DOL) has a six-factor test that you can use to determine whether a relationship with a worker could qualify as an unpaid internship. Keep in mind that this is a test, not a law. But don’t take it lightly — or you risk the possibility of incurring a fine or other legal action.
On May 18, the U.S. Department of Labor (DOL) announced final updates to the Fair Labor Standards Act’s “white collar” overtime exemptions.
The new overtime rules (known as the “final rule”) increase the salary threshold needed to qualify for overtime exemption from $455 per week ($23,660 per year) to $913 per week ($47,476 per year.) and affect 4.2 million workers.
Also, the total annual compensation requirement needed to meet the highly compensated employee (HCE) exemption will increase from $100,000 per year to $134,004.
Any business that employs workers with salaries under the new threshold will need to consider their best course of action or face paying thousands in higher wages. They could also be subject to employee lawsuits for failure to comply with the rule. No business is exempt, regardless of size.
Millions of people who work long hours today will soon get more money … or more free time. Or not.
By mid-May, the Department of Labor is expected to formally expand the number of workers entitled to overtime pay.
The changes are intended to give a fairer shake to very low-paid salaried workers who don’t get overtime even though they put in well over 40 hours a week. Why? Because they have some ‘managerial duties.’
But some employers could find ways around the new rules.
Dispatches From The Front 