International Level: Ambassador / Political Participation: 595 59.5%
Let me tell you how this has affected my Firm, although it is not directly a result of the changes in the law.
I work for a Law Firm. Traditionally, paralegals have been considered skilled professionals, and, therefore, exempt employees, which means salaried not hourly...no overtime pay. Recently, the Department of Labor (Federal) issued a ruling that said paralegals do not require any specialized education or training at entry into the field. (Incidently, my boss agrees that this is true) Therefore, they cannot be exempted under the skilled professionals exception. This ruling is effective August 23, 2004. So, all the paralegals in my Firm are now going to switch from being exempt to being non-exempt. They now must punch in and out, and fill out time cards just like the secretarial staff. For many, this is, in fact, a status issue. People do look at exempt positions as being professional and skilled. That has been taken from these people.
In addition, as has already been mentioned, work flexibility is now gone. The labor laws are clear about when and how overtime must be paid. A paralegal who needs to leave early one day this week, cannot make it up next week because that will put them over the 40 hour limit for that week requiring payment of overtime. Overtime pay isn't going to be authorized as a convenience for the employee, so any time made up must be made up in the same week as it was taken. These are people who have not had to answer to a clock before. They just needed to be sure their jobs were being done.
The other side is that a few people have been routinely working more than 40 hours per week. They will now need permission before doing so. I imagine the Firm will have to give permission or hire additional people. So, those people will see an increase in the money they earn for completing the same amount of work as they did previously.
I am not sure how I feel. I would love to get overtime for the hours I put in past 40. However, I wouldn't like to be tied to the clock. It is nice to know I am collecting the same check each week, even if I leave early to visit a doctor or get a hair cut.
Edited: tenaheff on 20th Aug, 2004 - 3:43pm
International Level: Diplomat / Political Participation: 320 32%
Ah, the joys of government interference. By passing laws, they stop the market from working, so competition is decreased, and so is efficiency and effectiveness.
As a salaried employee, I do have overtime pay available where I work, but it must be pre-approved. And that approval has become very rare and hard to get, even for engineers on the plant floor. However, we are expected to put in extra time.
I agree that not having to "clock in" makes for a much more flexible workplace. I really like working the way I do.
But, there is no problem that Government involvement in won't make worse.
International Level: International Guru / Political Participation: 854 85.4%
Since California is different from Federal law (so what else is new?) -- overtime is due for work over 8 hours in a day, rather than over 40 hours in a week -- it's slightly different, but can mean that folks working less than 40 hours in a week can still be eligible for overtime if they worked 8.5 hours one of the days in that same week...
In our small firm (less than 20 employees), overtime has to be approved and generally is when necessary. Because everything we do (or nearly everything) is billed to clients, even the partners have to keep time sheets. However, it's not like "punching a clock," and we do have a lot of flexibility with doctor's appointments and so forth. I don't think this new law will affect our company at all.
Roz
International Level: Ambassador / Political Participation: 595 59.5%
Judge blocks new overtime rule, postponing potential pay boost for 4.2M workers
A federal judge on Tuesday blocked a new rule from the U.S. Labor Department making make millions more Americans eligible for overtime pay. The decision by U.S. District Judge Amos Mazzant in the Eastern District of Texas indefinitely pushes back the Dec. 1 effective date while he weighs a challenge to the requirement. An estimated 4.2 million workers were to be newly eligible for time-and-a-half wages for each hour they put in beyond 40 a week under the new rule. Ref. USAToday.