(CHICAGO) September 3, 2015 – NAMA announced today that the Department of Labor (DOL) recently issued a proposed rule updating regulations governing overtime pay under the Fair Labor Standards Act (FLSA). These rules have an impact on the refreshment services industry. More than 150,000 comments have already been filed on this proposed rule, emphasizing its impact on the economy.
NAMA encourages all members to join the effort to ensure the industry's voice is heard, and is asking members and their employees to submit comments on these proposed rule changes. The comment period closes tomorrow, Friday, September 4th at midnight EDT.
Under the current FLSA rules there is a two-part test in order to exempt an employee from overtime pay eligibility. First, the employee has to earn over a certain amount per week/year; and second, the employee has to hold a position that falls within what is known as a "white collar" exemption where the employee performs duties that are executive, administrative or professional in nature. This second qualification is known as the "duties test."
The proposed rule seeks to increase the salary threshold from $455/week ($23,660 annually) to $970/week ($50,440 annually). High compensated employees' salary level is also increased from $100,000/year to $122,148/year. The proposal also seeks to establish a process for salary thresholds to be adjusted automatically annually.
While not making changes to the "duties tests," the proposed rule does asks for feedback from employers on them. It is possible that changes to the duties tests could be part of a final rule; however, we believe that a separate rule should be proposed before such changes are finalized.
Please visit http://namavoice.org/federal-issues/labor for downloadable instructions on how to submit your comments and a sample comment letter.
Founded in 1936, NAMA is the association representing the $25 billion U.S. vending and refreshment service industry. With more than 1250 member companies – including many of the world’s most recognized brands – NAMA provides advocacy, education and research for its membership. Visit NAMA on Facebook, Twitter and LinkedIn.