Construction Today - September 2016 - 8

REGULATIONS
change in wages is\
» .The
expected to ensure workers
are compensated fairly.

NEW EFFECTS

Overtime rules will impact the construction industry. BY MARY BETH SAYLOR

I

n 2014, President Obama issued a
memorandum to the Department
of Labor (DOL) to update and modernize the regulations governing the
exemption of executive, administrative,
and professional (EAP) employees from the
minimum wage and overtime pay protections of the Fair Labor Standards Act (FLSA
or Act). The primary reasons for the change?
Salary levels in the prior regulations were
fixed, and there was not a mechanism for
keeping them commensurate with the
appropriate percentile of average wages
today and into the future. Additionally, the
change is expected to help accomplish one
of the President's goals of ensuring workers
are compensated fairly for their work.
The current salary levels have been in
effect since 2004 when they went from $250

8

CONSTRUCTION-TODAY.COM SEPTEMBER 2016

(set in 1975) to $455 a week. The Department
published a notice of proposed rulemaking
on July 6, 2015. This generated great interest,
and the Department received more than
270,000 comments in response. In March
2016, the Department published the Final
Rule to update the regulations. The DOL
estimates the Final Rule will automatically
extend overtime pay protection to 4.2 million
workers within the first year of implementation. This long-awaited update will produce
a significant increase to many workers'
incomes. This ruling becomes effective Dec.
1, 2016, so construction companies should
begin preparing now, if they haven't already.

Updated Exemption Tests
Since 1938, the Department's regulations
have generally required that each of the

following three tests be met for the FLSA's
EAP exemption:
1. The employee must be paid a predetermined and fixed salary that is not
subject to reduction because of variations in the quality or quantity of work
performed (the salary-basis test);
2. The amount of salary paid must meet
a minimum specified amount (salary-level test); and
3. The employee's job duties must primarily involve executive, administrative or
professional duties as defined by the
regulations (duties test).
It should be noted that the Final Act
did not change the duty test in any of the
exempt classifications, but significantly
changed the salary-level test as well as
the salary-basis test.


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Table of Contents for the Digital Edition of Construction Today - September 2016

Contents
Construction Today - September 2016 - Cover1
Construction Today - September 2016 - Cover2
Construction Today - September 2016 - 1
Construction Today - September 2016 - Contents
Construction Today - September 2016 - 3
Construction Today - September 2016 - 4
Construction Today - September 2016 - 5
Construction Today - September 2016 - 6
Construction Today - September 2016 - 7
Construction Today - September 2016 - 8
Construction Today - September 2016 - 9
Construction Today - September 2016 - 10
Construction Today - September 2016 - 11
Construction Today - September 2016 - 12
Construction Today - September 2016 - 13
Construction Today - September 2016 - 14
Construction Today - September 2016 - 15
Construction Today - September 2016 - 16
Construction Today - September 2016 - 17
Construction Today - September 2016 - 18
Construction Today - September 2016 - 19
Construction Today - September 2016 - 20
Construction Today - September 2016 - 21
Construction Today - September 2016 - 22
Construction Today - September 2016 - 23
Construction Today - September 2016 - 24
Construction Today - September 2016 - 25
Construction Today - September 2016 - 26
Construction Today - September 2016 - 27
Construction Today - September 2016 - 28
Construction Today - September 2016 - 29
Construction Today - September 2016 - 30
Construction Today - September 2016 - 31
Construction Today - September 2016 - 32
Construction Today - September 2016 - 33
Construction Today - September 2016 - 34
Construction Today - September 2016 - 35
Construction Today - September 2016 - 36
Construction Today - September 2016 - 37
Construction Today - September 2016 - 38
Construction Today - September 2016 - 39
Construction Today - September 2016 - 40
Construction Today - September 2016 - 41
Construction Today - September 2016 - 42
Construction Today - September 2016 - 43
Construction Today - September 2016 - 44
Construction Today - September 2016 - 45
Construction Today - September 2016 - 46
Construction Today - September 2016 - 47
Construction Today - September 2016 - 48
Construction Today - September 2016 - 49
Construction Today - September 2016 - 50
Construction Today - September 2016 - 51
Construction Today - September 2016 - 52
Construction Today - September 2016 - 53
Construction Today - September 2016 - 54
Construction Today - September 2016 - 55
Construction Today - September 2016 - 56
Construction Today - September 2016 - 57
Construction Today - September 2016 - 58
Construction Today - September 2016 - 59
Construction Today - September 2016 - 60
Construction Today - September 2016 - 61
Construction Today - September 2016 - 62
Construction Today - September 2016 - 63
Construction Today - September 2016 - 64
Construction Today - September 2016 - 65
Construction Today - September 2016 - 66
Construction Today - September 2016 - 67
Construction Today - September 2016 - 68
Construction Today - September 2016 - 69
Construction Today - September 2016 - 70
Construction Today - September 2016 - 71
Construction Today - September 2016 - 72
Construction Today - September 2016 - 73
Construction Today - September 2016 - 74
Construction Today - September 2016 - 75
Construction Today - September 2016 - 76
Construction Today - September 2016 - 77
Construction Today - September 2016 - 78
Construction Today - September 2016 - 79
Construction Today - September 2016 - 80
Construction Today - September 2016 - 81
Construction Today - September 2016 - 82
Construction Today - September 2016 - 83
Construction Today - September 2016 - 84
Construction Today - September 2016 - 85
Construction Today - September 2016 - 86
Construction Today - September 2016 - 87
Construction Today - September 2016 - 88
Construction Today - September 2016 - 89
Construction Today - September 2016 - 90
Construction Today - September 2016 - 91
Construction Today - September 2016 - 92
Construction Today - September 2016 - 93
Construction Today - September 2016 - 94
Construction Today - September 2016 - 95
Construction Today - September 2016 - 96
Construction Today - September 2016 - 97
Construction Today - September 2016 - 98
Construction Today - September 2016 - 99
Construction Today - September 2016 - 100
Construction Today - September 2016 - 101
Construction Today - September 2016 - 102
Construction Today - September 2016 - 103
Construction Today - September 2016 - 104
Construction Today - September 2016 - 105
Construction Today - September 2016 - 106
Construction Today - September 2016 - 107
Construction Today - September 2016 - 108
Construction Today - September 2016 - 109
Construction Today - September 2016 - 110
Construction Today - September 2016 - 111
Construction Today - September 2016 - 112
Construction Today - September 2016 - 113
Construction Today - September 2016 - 114
Construction Today - September 2016 - 115
Construction Today - September 2016 - 116
Construction Today - September 2016 - 117
Construction Today - September 2016 - 118
Construction Today - September 2016 - 119
Construction Today - September 2016 - 120
Construction Today - September 2016 - 121
Construction Today - September 2016 - 122
Construction Today - September 2016 - 123
Construction Today - September 2016 - 124
Construction Today - September 2016 - 125
Construction Today - September 2016 - 126
Construction Today - September 2016 - 127
Construction Today - September 2016 - 128
Construction Today - September 2016 - Cover3
Construction Today - September 2016 - Cover4
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