CoatingsPro Magazine

SEP 2016

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24 SEPTEMBER 2016 COATINGSPROMAG.COM Contractor's Corner T he Department of Labor (DOL) has updated federal overtime rules regarding salaried employees. e change is, in a word, overdue. But that's nothing new; from their inception, U.S. labor laws have historically taken some time to develop. e new changes will have teeth, even for companies that employ few salaried workers. W hether you're a small coatings operation or a large one, you' ll have to take a look at your practices and ensure you're compliant. A Radical Idea W hile today's Americans may look at the Fair Labor Standards Act (FLSA) as a no-brainer, many Americans in the early 20 th century viewed govern- ment legislation of industry to be quite radical — even regarding child labor. e Supreme Court of the time, particularly during the 1930s, was perhaps the biggest opponent of labor (and social) legislation. In 1918, the Supreme Court ruled that a federal child-labor law was unconsti- tutional (Hammer v. Dagenhart). In 1923, the Supreme Court ruled that a District of Columbia law establishing minimum wages for women was also unconstitu- tional (Adkins v. Children's Hospital). In the wake of the Great Depression, though, President Franklin D. Roosevelt was determined to enact legislation that would level the playing field for all employees and also help the country avoid the kind of economic collapse it saw during the Depression. As part of Roosevelt's New Deal promise, the administration developed the National Industrial Recovery Act (1933), aimed at raising wages, creating employment opportunities, and restor- ing industry. But on May 27, 1935, also known as Black Monday, the Supreme Court ruled that many of the provisions in the National Industrial Recovery Act were unconstitutional (Schechter Corp. v. United States). The Big Switch Following the demise of the National Industrial Recovery Act, a series of Supreme Court decisions continued in the same vein, nullifying a number of state and federal labor laws. at is, until the case of Joseph Tipaldo in 1936. Tipaldo, who managed a laundry service in Brooklyn, N.Y., was paying nine female employees $10 a week, well under the $14.88 minimum wage established by the state. Tipaldo was getting around the law by paying his workers the full $14.88 and then making them pay back the $4.88 difference. New York authorities charged him with breaking New York laws and threw him in jail. e case went to the Supreme Court. Tipaldo's attorneys argued that New York 's laws were unconstitutional, and the Supreme Court agreed. e decision was extremely unpopular, in general. During the 1936 presidential race, Roosevelt campaigned on New Deal issues, including labor laws, which seemed to have public support. After he won reelection, Roosevelt openly criti- cized the Supreme Court. On March 29, 1937, also known The threshold salary (the level at which employers have to pay overtime) will more than double, from $23,660 to $47,476. By Ryan Braley, Director of Human Resources & Risk Management for Avitus Group Beware the Bite: Overtime Changes Coming With Impact

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