President directs DOL to revise overtime-pay rules

President Obama, in a first step toward a proposal that could ultimately allow millions of additional employees to qualify for overtime pay, signed a memorandum to Labor Secretary Thomas Perez March 13 asking the Dept. of Labor (DOL) to propose revisions to federal overtime regulations to reflect the “changing state of the workplace.”

The federal Fair Labor Standards Act (FLSA) requires employees to be paid time-and-a-half when they work more than 40 hours a week. The DOL is in charge of writing the rules to explain who’s exempt from overtime pay under the FLSA.

Under current DOL rules, employees who work in a “bona fide executive, administrative or professional capacity” are exempt from the FLSA’s overtime provisions. The DOL sets three tests an employee must meet to fit this classification: 1. They must be paid a salary of at least $455 a week ($23,660 per year); 2. They must be paid on a “salary basis,” and; 3. They must pass a duties test that shows they qualify as executive/managerial, professional or administrative employees. DOL regulations spell out the fine print for the salary and duties tests. The National Restaurant Association’s Legal Problem Solver for Restaurant Operators summarizes the existing rules. The Louisiana Restaurant Association can provide you a copy of this information. 

The Obama Administration has not said what changes it’s looking for, but indicates it’s trying to increase pay for millions of private-sector employees.

Any new regulation would have to go through a lengthy process that would require the DOL to solicit public comments on proposed changes.

The National Restaurant Association is tracking this issue closely. The overtime rules were significantly revised about 10 years ago, largely in an effort to the make the rules clearer for both employers and employees. The issue has huge implications for all employers.

In his memorandum, the President said “regulations regarding exemptions from the Act’s overtime requirement, particularly for executive, administrative, and professional employees…have not kept up with our modern economy. Because these regulations are outdated, millions of Americans lack the protections of overtime and even the right to minimum wage.”

Oct. 1 Employee Notification of Health Care Marketplaces approaching

The National Restaurant Association has launched a new tool to help restaurateurs notify employees about new government-run health insurance marketplaces. Restaurant members of the Louisiana Restaurant Association can use this tool at no charge as they implement the notification process.

SPECIAL NRA NOTIFICATION TOOL WEBINAR--Sept. 12, 1-2 p.m. Register here.

The online employee-notification tool, available at Restaurant.org/Notify, is designed to help employers meet an Oct. 1 federal deadline to notify employees about government-run health insurance exchanges.

“As changes begin to unfold under the health care law in the coming weeks and months, the Louisiana Restaurant Association will continue share valuable information and tools available to help our members navigate the complexities of the law,” said Stan Harris, LRA President/CEO. “The NRA’s new online notification tool is a great benefit of being a member of the LRA.”  

The online tool is available exclusively to NRA restaurant members as a benefit of membership. If you are a restaurant member of the LRA, you are automatically a member of the NRA through our dual membership program.

Among other provisions, the health care law creates a new section of the Fair Labor Standards Act that require employers to provide existing employees with basic information about exchanges by Oct. 1, including letting employees know they may be eligible for federal tax subsidies to buy health plans through exchanges. The mandate applies to all employers covered by the FLSA. Starting in 2014, employers will be required to provide employees with the FLSA notice within 14 days of hiring, according to the Department of Labor.

Exchanges are set to open in every state on Oct. 1 to begin offering millions of Americans new options for buying health insurance for 2014.

The National Restaurant Association’s Notification Tool offers online registration that guides an employer through the law’s required information process so that all employees can be properly notified when they access the site.

“Members who register to use the tool can create online portals to tell their employees about exchanges, track which employees they’ve notified, and keep on- and offline records to document which employees have received the notice,” Harris added.

The Notification Tool is part of the National Restaurant Association’s Health Care Reform Headquarters. The one-stop shop offers NRA members information about how the law affects restaurant businesses, including a Health Care Law Primer that covers key aspects of the law for restaurant employers. The Health Care Reform Headquarters will later offer a marketplace to help restaurant employers and employees shop for Affordable Care Act-compliant health plans.