Arkansas Funeral Directors Association

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News & Announcements

Aug
03

How the New Department of Labor Overtime Regulations Affect You

Recently, the AFDA reviewed the new Department of Labor guidelines for "white-collar" workers (your professional, administrative, etc. staff) who make less than $47,476. The bottom line is that if any white-collar employee is making less than this amount they must be paid overtime when working more than forty hours in one week. There are further guidelines available here on the Department of Labor's website. We know this may impact your funeral home so you will want to become familiar with the new rule, exemptions and your options in order to make a plan for the future. 

The new rules go into effect on December 1, 2016. Highlights include:

  • The new guaranteed salary requirement is a minimum of $913.00 per week ($47,476.00 annually); this salary requirement applies to the executive, administrative and professional exemptions.
  • Employees that receive total annual compensation of at least $134,004.00, referred to as “highly compensated”, are exempt from the overtime requirement if they meet a more relaxed duties test. Test can be found here on the DOL’s website.
  • Commissions can be applied to the salary requirement: maximum of 10% salary- maximum of $4,747.60 annually.
  • The DOL did not change the white collar exemption duties tests.
  • The final regulation establishes a mechanism to update the salary requirement level every three (3) years.

Department of Labor Website: The DOL website had a wide range of resources – Q&As, fact sheets, guidance for employers and more- to help you bring your business into compliance by December 1.

Recommendations:

  • Review your white-collar workers positions and simply identify those who make less than $47,476.
  • Request/require these positions to maintain an accurate record of time.
  • Determine whether or not these incumbents who make less than $47,476 work in excess of 40 hours per week.
  • If overtime is worked, determine if hours of work can be reduced to 40.
  • If a particular position is required to work over 40 hours on a regular basis, you will need to decide if you prefer paying overtime or raise the employee’s salary to the minimum requirement of $47,476.00.
Arkansas Funeral Directors Association
523 South Louisiana  ♦  Suite 222  ♦  Little Rock, AR 72201
Phone: 501-246-8842  ♦  Fax: 866-935-6893
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