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ISSUE 2
“The duties tests apply to specific job types and roles of the position, and can include educational accomplishments of the worker.”
Some are noting that any victory against the salary threshold may backfire on employers , who are left with possibly a greater burden to prove, when challenged, that workers are overtime exempt solely on the duties. A handful of legal challenges are in play, and a judgement on one of them can stop the new salary thresholds from becoming effective. But the debate continues about what is best for workers, the businesses they serve, and the economy overall.
no reduction in pay for the quantity or quality of their work (if they work some during the work week), and whose salary meets a certain threshold amount. These people can work 80- hour weeks and their pay would be the same as if they worked 40, or 15. The Labor Department’s release of a final rule raises the last item, the salary threshold, by 23% on July 1, with an even larger increase due January 1, 2025. On the surface, the debate surrounding the salary threshold is like the minimum wage debate. However, if those against the new amounts succeed in stopping the salary threshold change, it may be because it is determined by a court the salary threshold altogether was not the intention of Congress in the Act. Without that measure to work with, employers then would rely on the duties tests to justify the exemption. The duties tests apply to specific job types and roles of the position, and can include educational accomplishments of the worker. These levels also must be met, but they are much more subjective.
Author: Michael Baer
Michael Baer is president of
Baer Unlimited, an independent research, analysis,
and communications provider that helps Payroll modernize operations, stay compliant, and improve the use and security of their data. For more on these issues discussed above, contact him directly at mike.baer@baerunlimited. com, or book Michael as a mentor through the GPA Mentor page.
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