WELCOME TO NEW HAMPSHIRE'S
BUSINESS.
I'M FRED KOCHER.
OVERTIME PAY, WHAT'S IT MEAN FOR
WORKERS AND WHAT DOES IT MEAN
FOR EMPLOYERS.
THERE'S A NEW FEDERAL RULE OUT
AND HERE ARE THE PARTICULARS ON
THAT RULE.
THE RULE SAYS ANYONE WHO MAKES
LESS THAN 47,476 PER YEAR MUST
RECEIVE TIME AND A HALF PAY FOR
OVER 40 HOURS A WEEK.
ALMOST DOUBLE THE THRESHOLD OF,
23,000 THE RULE GOES INTO EFFECT
DECEMBER 1ST, 2016.
THE QUESTION IS HOW MANY OF
THOSE IN NEW HAMPSHIRE, AND THEN
THE OPPOSITION IS COMING FROM
SMALL BUSINESSES, NONPROFITS,
AND UNIVERSITIES.
JOINING ME IS SOMEONE WHO WORKS
WITH THAT DAILY.
CHARLIE STEVENS OF EMPLOYMENT
LAW PRACTICE AT THE McLANE LAW
FIRM.
>> THANK YOU, THANKS VERY MUCH.
>> LET'S REVIEW QUICKLY WHAT
THIS LANGUAGE REALLY MEANS IN
TERMS OF, IN LAYMAN'S LANGUAGE.
WHAT DOES IT DO?
>> UNDER THE FAIR LABOR
STANDARDS ACT, THE FEDERAL WAGE
AN HOUR LAW, EMPLOYEES ARE
TYPICALLY ENTITLED TO OVERTIME
PAY FOR EVERY HOUR THEY WORKER
EVERY 40 AND THAT'S TIME AND A
HALF.
THERE ARE EXEMPTIONS TO THAT AND
ONE OF THE EXEMPTIONS ARE THE
WHITE COLLAR EXEMPTIONS THEY
CALL THEM, THAT'S EXECUTIVES,
PROFESSIONALS.
IF THEY MEET TWO PARTS OF A
TEST, A DUTIES TEST AND SALARIES
TEST, THEN THEY'RE NOT ENTITLED
TO OVERTIME AND THE MINIMUM WAGE
REQUIREMENTS.
>> THIS RULE CHANGES THAT?
>> IT CHANGES THIS ON IT ABOUT
DOUBLES THE MINIMUM SALARY
THRESHOLD IN ORDER TO BE
CONSIDERED EXEMPT.
>> DO YOU HAVE ANY IDEA HOW MANY
NEW HAMPSHIRE SALARIED EMPLOYEES
MIGHT BE ELIGIBLE?
>> ACCORDING TO THE U.S.
DEPARTMENT OF LABOR'S WEBSITE,
ABOUT 22,000, OUT OF THE 4.2
MILLION.
>> LET'S PUT THE MAP UP OF THE
UNITED STATES.
THIS IS INTERESTING BECAUSE THIS
MAP, AND LOOK AT THE COLORATIONS
FROM DARK TO LIGHT.
AND THE NUMBER OF SALARY
EMPLOYEES IN EACH OF THESE
STATES, THE NUMBER IS HIGH IN
THE DARKER STATES AND LOW IN THE
LIGHTER STATES AND YOU CAN SEE
NEW HAMPSHIRE IS ON THE LIGHTER
SAID AT 22,000.
I THOUGHT THAT WAS AN
INTERESTING MAP TO THROW UP
THERE.
SO, DOES THIS MEAN THAT IF THEY
WORK--
I MEAN, MOST OF US THINK 40
HOURS, IF I WORK MORE THAN 40
HOURS I GET OVERTIME PAY.
THAT'S NOT NECESSARILY THE CASE
HERE?
>> NO, IF YOU FIT ONE OF THE
EXEMPTIONS, LIKE DOCTORS AND
LAWYERS AND OTHER PROFESSIONALS
DO, THEN YOU'RE NOT ENTITLED TO
THAT OVERTIME PAY OR IF YOU MEET
SOME OF THE OTHER CRITERIA.
>> WHAT KIND OF WORKERS IN NEW
HAMPSHIRE WILL BE ENTITLED?
>> I THINK THE ONES THAT ARE
GOING TO BE MOST EFFECTED ARE
PROBABLY IN RETAIL, HOSPITALITY,
SERVICE INDUSTRY, AND THEN
NONPROFITS AND THERE HAVE BEEN A
LOT OF COMMENTS BY NONPROFITS
ABOUT HOW THIS CHANGE WILL
AFFECT THEM.
>> YEAH, THERE'S OPPOSITION, IN
FACT, AMONG SMALL BUSINESS AND
NONPROFITS.
WHAT KIND OF OPPOSITION DO YOU
DO HERE?
>> WELL, I THINK THE CONCERN IS
THAT THEY'RE EITHER GOING TO
HAVE TO GIVE PEOPLE SALARY
INCREASES AND IN SOME CASES,
SIGNIFICANT, WHERE THE THRESHOLD
IS NOW DOUBLE, OR THEY'LL HAVE
TO START PAYING OVERTIME.
>> YEAH, WHAT DO YOU TELL--
YOU HAVE BUSINESSES NOW CALLING
YOU, YOUR CLIENTS.
>> RIGHT.
>> THEY'RE CALLING YOU AND WHAT
ARE THEY ASKING YOU?
>> WELL, WE'VE KNOWN THIS WAS
COMING A COUPLE OF YEARS, SINCE
2014, WHAT THEY'RE SAYING NOW,
OK, WE NOW KNOW WHAT THE RULE IS
GOING TO BE, WHAT DO WE DO TO
PREPARE AND, A, ARE WE DOING IT
CORRECTLY AND WHAT CHANGES DO WE
NEED TO MAKE?
>> WHAT SHOULD EMPLOYERS BE
DOING WITH THIS RULE?
>> WELL, I WOULD START RIGHT
AWAY BY LOOKING AT JOB
DESCRIPTIONS.
THE BEST THING THAT YOU COULD
HAVE IS AN ACCURATE JOB
DESCRIPTION, DESCRIBING WHAT
THAT EMPLOYEE ACTUALLY DOES FOR
WORK.
AND THEN, WITH THE EMPLOYEES WHO
DO MEET THE TESTS, THE DUTIES
TESTS AND REALLY ARE EITHER
PROFESSIONAL OR EXECUTIVES.
>> RIGHT.
>> THEN LOOK AT THE SALARIES,
TRY TO LOOK HOW MUCH THEY'RE
ACTUALLY WORKING.
DO THEY WORK OVERTIME?
AND THEN DO A MATHEMATICAL
ANALYSIS OF WHICH IS THE BEST
WAY TO GO.
>> MORE TRACKING BY THE
EMPLOYERS OF THOSE EMPLOYEES.
>> ABSOLUTELY, ABSOLUTELY.
>> THIS RULE GOES INTO EFFECT
DECEMBER 1ST OF THIS YEAR AND
WE'RE OUT OF TIME.