CoatingsPro Magazine

SEP 2016

CoatingsPro offers an in-depth look at coatings based on case studies, successful business operation, new products, industry news, and the safe and profitable use of coatings and equipment.

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COATINGSPRO SEPTEMBER 2016 25 as W hite Monday, the court changed direction by upholding the Washington State minimum wage law in a decision in favor of a former chambermaid who sued for back pay, arguing she'd been paid less than the state minimum wage (West Coast Hotel Company v. Parrish). Two months later, Roosevelt sent the first version of the FLSA to Congress. Over the following year, the bill went through several rounds in the legislature. Conceived in the ashes of the Great Depression, the FLSA didn't become law until almost a decade after the Depression began. New Overtime Rules W hile the FLSA requires employers to pay one and a half times the regular pay rate for any hours worked over 40 per week, some employees are exempt from this. (Hence, exempt employees.) It's not that employers don't have to pay exempt, or salaried, employees overtime, it's just that the threshold salary level has historically been rather low. Basically, any employee who makes more than $23,660 is exempt from overtime, which means almost all salaried employees are exempt from overtime because almost all salaried employees make more than $23,660. e Department of Labor's change for this coming December is a long-overdue update. e threshold salary (the level at which employers have to pay overtime) will more than double, from $23,660 to $47,476. The Key Provisions and Options for Employers According to DOL, the FLSA update will include key changes. e update: • Sets the standard salary level at the 40 th percentile of earnings of full-time salaried workers in the lowest-wage Census Region, currently the South, which is $913 per week or $47,476 annually for a full-year worker; • Sets the total annual compensation requirement for highly compensated employees (HCE) subject to a minimal duties test to the annual equivalent of the 90 th percentile of full-time salaried workers nationally, which is $134,004; and • Establishes a mechanism for automatically updating the salary and compensation levels every three years to maintain the levels at the above percentiles and to ensure that they continue to provide useful and effective tests for exemption. Additionally, according to DOL, the Final Rule amends the salary basis Contractor's Corner Wr i te in Re ad e r In q u ir y #386

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