40 Landscape and Irrigation September 2014 www.landscapeirrigation.com
O
n March 13, 2014, the Obama administration
released a Pesidential Memorandum in which the
president stated "… regulations regarding exemp-
tions from the Act's overtime requirement, particu-
larly for executive, administrative, and professional employees
(often referred to as "white collar" exemptions) have not kept
up with our modern economy. Because these regulations are
outdated, millions of Americans lack the protections of over-
time and even the right to the minimum wage." He directed
the Department of Labor (DOL) to propose revisions to mod-
ernize and streamline the existing overtime regulations under
the Fair Labor Standards Act (FLSA). The specific regulations
are those that define the exemptions from both minimum wage
and overtime for executives, administrative, professional, and
outside sales employees. Those regulations were last revised in
2004 and had not been revised previously since 1975.
I participated in a July 11 meeting by the Small Business
Administration Office of Advocacy, which takes its direction
from small businesses, and hosts roundtables to receive input
on what issues are of greatest importance. Dr. David Weil,
the new administrator of the Wage and Hour Division of the
DOL, and Dr. Winslow Sargeant, chief counsel for Advocacy,
were present to listen to a wide range of views from small
businesses on the potential impact of this memorandum. They
wanted to hear up front from small businesses before changes
in the regulations were published, so I made a special point to
add the fact that our industry is seasonal and has busy months
where a good amount of overtime occurs. Some industry
participants expressed their fear of major changes and unin-
tended circumstances that would lead them to transition some
salaried pay plans to hourly pay plans with overtime. They
explained how this change would not be ideal for employees
and would be dictated by the impact on profitability for small
businesses.
FLSA provides an exemption from both minimum wage
and overtime pay for those hired as bona fide executive,
Staying Current
By Tom Delaney
Green Infrastructure Stormwater and your Business
Image ©istockphoto.com/prill
