Fort Payne Chamber Chatter, September 23

Contributed by Carol Beddingfield, Executive Director

FORT PAYNE, Ala.  — Are you as a business owner or employee confused over the new federal ruling concerning overtime pay?

The Chamber and the DeKalb County Economic Development Authority will partner to help answer many of the questions that companies may have concerning the new federal ruling.

On October 13th at the DeKalb Theatre from 11:30 to 1PM, attorney Elizabeth Kanter of the Carr and Allison firm will be presenting an explanation of the guidelines in order for a company to be in compliance.

The final federal rule more than doubled the minimum salary threshold for the federal overtime requirement exemption which is commonly referred to as the “white collar” exemption.

The increase in minimum salary that must be paid before an executive, administrative or professional employee can be exempt from overtime is $47,476 annually, or $913 a week.

That threshold represents 40 percent of full-time wages in the Southeast.  We are in the lowest-wage Census region in the United States.

It is estimated that 64 percent of salaried employees in the retail industry will be affected by the rule change.  Therefore, this ruling does not affect manufacturing or professionals.  

Any currently exempt employees making an annual salary above $23,660 but less than $47,476 will either have to be reclassified as hourly workers and paid for all hours worked over 40 in a week, be limited to a 40-hour week or receive a pay raise that puts them above the $47,476 minimum.  Another option is to split the job into two part-time positions.

Employers are really concerned that they will have to let employees go due to the new ruling.  However, a duties test applies.  To learn who becomes exempt due to their duties, please attend the training on October 13th.

The training is FREE to the public.  Lunch will NOT be provided.

We encourage you to bring a “brown bag” lunch and join others who are facing concerns about their employees.
Call the Chamber at 256-845-2741 to register for the training.