Tucson, AZ, May 24--For small companies, recently revised white-collar overtime rules may be a shock. Many don't have human resource departments or legal teams to pore through 154 pages of job definitions, according to the Tucson Citizen.
The Labor Department, reacting to increased lawsuits related to the Fair Labor Standards Act, revised the minimum salary and redefined duties required of employees to be exempt from overtime.
The final rules were published in the Federal Register on April 23.
One key change is that employees earning less than $455 a week, or $23,660 a year, must receive overtime.
Before, employees could earn as little as $155 a week and still not get overtime.
An estimated 1.3 million low-wage white-collar workers are expected to benefit, while an estimated 107,000 high-income workers could lose out on overtime, the Labor Department said.
Mary Anderson, human resource manager at the Phoenix Art Museum, is among those taking a proactive look at staffs, even as Congress tries to squash the ruling.
"I found it's a wonderful time to assess your situation," she said.
For the museum, the exercise helped ensure that its 110 employees are classified correctly.
About 35 percent are considered exempt of overtime, based on their duties and salary levels.
The new rules don't change any of those classifications.
Norma McCormick, president of Guaranteed Clean Carpet Systems in Gilbert, does not expect to make changes to the status of her two working managers, whom she pays overtime to build loyalty.
"I'm already asking them to work nights and weekends," she said. "I pay overtime because I think it's right."
