The New Overtime Pay Laws: Test Your Knowledge of Part-timers and Suspensions!

With the new overtime law provisions, I’m sure thousands of questions will be asked on a regular basis. Here are some questions that have been asked; see if YOU know the answers!

1. How would you handle part-time workers who earn less than $455 per week, but would exceed $455 per week if their pay was annualized. In addition, they pass one of the exempt-duties tests. How are they handled?

2. How do the new regulations work for professionals who are working just a couple of days per week for a fee? This situation involves an educational institution, with part-time instructors who teache one or two courses each semester. Must they be paid hourse to avoid paying full-time wages?

3. Can exempt employees be suspended for a full week? If the suspention occurs during the day, does the employee have to be paid for the whole day?

Brief answers and the website for more complete information

1. Answer: only employees who work over 40 hours per week must be paid overtime. Part-time workers would not be paid overtime since they won’t be working more than 40 hours per week.

2. Employees paid on a fee basis that amounts to at least $455 per 40-hour work week are exempt employees.

3. The new overtime regulations actually allow for more flexibility than the old regs. Under the new regs, a company can suspend an exempt employee in full-day increments IF the suspension is for a violation of a written policy that applied to all employees. However, the new regs indicate that if an employee works part of a day, and then is suspended, he or she must be paid in full for that day.

More details, and further information on these questions, may be found here.

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