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About NACo – The Voice of America’s Counties www.naco.org


National Association of Counties (NACo) is the only national organization that represents county governments in the U.S. NACo provides essential services to the nation’s 3,068 coun- ties. NACo advances issues with a unified voice before the federal government, improves the public’s understanding of county government, assists counties in finding and sharing innova- tive solutions through education and research and provides value-added services to save counties and taxpayers money.


Hour Division released a proposed rule to update and revise the regulations issued under the Fair Labor Standards Act (FLSA) that would change the way employers implement the exemption from minimum wage and overtime pay for executive, administrative and professional employees. Tis proposal could have a significant im- pact on counties and the number of employees that are eligible for overtime pay. According to the Obama administration, the proposed changes would affect an estimated 5 million workers across the United States, and the new overtime regulations would cover about 40 percent of the country’s full-time salaried workforce. Tere are several key issues that counties should be aware of:


• Te FLSA, first enacted in 1938, established a national minimum wage and set the overtime pay rate at one and one-half times an employee’s regular rate for any hours over 40 hours in a workweek.


• Te standard salary level required for exemption from overtime pay is $455 per week ($23,660 for a full-year worker), which was last updated in 2004.


• DOL seeks to update this salary level and more than dou- ble the current salary threshold for overtime pay eligibility to $970 a week ($50,440 for a full-year worker) in 2016.


• While these wage and overtime protections extend to most workers, the FLSA provides employers with a few exemptions from the overtime pay requirement, such as the “white collar” exemption, which applies to executive, administrative and


Department of Labor releases proposed rule on overtime pay By Daria Daniel On July 6, the U.S. Department of Labor’s (DOL) Wage and


• Te Labor Department’s proposed overtime pay rule for “white collar” employees is applicable to state and local government workers. Te proposed rule is also applicable to any businesses, including small businesses, which have annual gross sales of $500,000 or more.





If the overtime pay rule is enacted, there could be signifi- cant financial and administrative impacts on state and lo- cal governments and small businesses.


Te “white collar” exemption was created to exempt workers that earned a salary well above the minimum wage and enjoyed other privileges, including above average benefits, greater job se- curity and better opportunities for advancement, setting them apart from workers entitled to overtime pay. To be considered exempt, the workers must meet certain mini-


professional employees.


mum tests, which include earning the standard salary level and performing particular job duties. Te job “duties test” is an assess- ment of whether the worker performs mostly executive, admin- istrative or professional duties. If so, the worker is not entitled to overtime pay. Te proposed rule would increase the minimum salary threshold from $455 to $970 per week, potentially increas- ing the number of “white collar” employees that would be eligible for overtime pay. While the proposed rule focuses on increasing the minimum sal-


ary threshold for overtime pay, the administration is also consider- ing changes to the job “duties test” and has asked for comments on this along with the new salary threshold. DOL is accepting written comments until September, 4, 2015, at www.regulations.gov. A final rule is expected in early 2016.


Advertiser Resource Index


AAC Risk Management ...................................................................... 50 AAC Workers’ Compensation Trust .......................................................... 59 DataScout .................................................................. . Inside Front Cover Apprentice Information Systems, Inc. .......................................................... 40 Crews and Associates ............................................................... Back Cover Guardian RFID ............................................................................. 33 Ergon Asphalt & Paving ....................................................................... 4 Financial Intelligence ........................................................................ 37 Metro Disaster Specialists ................................................................... 15 Nationwide Insurance ....................................................................... 25 Rainwater Holt & Sexton, PA .................................................................. 3 Southern Tire Mart ......................................................................... 63 Tax Pro ................................................................................... 10 Time Striping, Inc. ........................................................................... 8


This publication was made possible with the support of these advertising


partners who have helped to underwrite the cost of


County Lines. They deserve your consideration and


patronage when making your purchasing decisions. For


more information on how to partner with County Lines,


please call Christy L. Smith at (501) 372-7550.


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COUNTY LINES, SUMMER 2015


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