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NARDA NEWS

Examine Your Overtime Compensation Policies

 

By Bob Goldberg, NARDA General Counsel

Overtime compensation has long been an issue for retailers. Questions regarding service hours, travel time, training, comp time and company functions have often arisen. Recent changes to the overtime rules require that every retailer review job descriptions, compensation levels and time-keeping procedures.

Eligibility for overtime compensation is determined by job duties and compensation. The fact that an employee is paid a salary is not a factor. It is essential that employees be required to keep accurate records of their time on a daily basis according to company requirements. On Dec. 1, 2016, the Department of Labor, pursuant to the Fair Labor Standards Act, will increase the minimum amount of compensation required to eliminate automatic eligibility for overtime compensation. The current administration in Washington, D.C., was not able to raise the minimum wage on a national level, and thus turned its focus to raising compensation by a rulemaking overhaul of the Fair Labor Standards Act.

Beginning Dec.1, any employee earning less than $47,476 per year will be eligible for overtime compensation. On the other end of the spectrum, individuals earning more than $134,004 per year will be considered highly compensated individuals exempt from overtime compensation. Estimates range that from 4 million to 8 million additional individuals will become eligible for overtime compensation.

The salary levels themselves are not dispositive of the issue because the duties test needs to be considered. The duties test considers an individual’s job responsibilities to determine whether he or she is exempt. So the fact that employees are earning above a certain limit does not mean that they are exempt from overtime if their duties are not within the exempt categories.

 

 Read the full article in the Members Only section


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RRetailers, Servicers, Suppliers: A Call for Industry Participation

For more than 75 years, the North American Retail Dealers Association has been the voice of independent appliance, electronics, bedding and furniture retailers. Through education, representation and a host of benefits, NARDA has worked diligently for all retailers.

Here’s how you can help both the industry and your own enterprise: NARDA is now moving forward into new areas and seeks volunteers that can give an hour or less each month to help guide the association. Please indicate your interest and you will be contacted and given more information.

Your name:

Contact number:

NARDA also is asking you to identify the areas in which it can assist you and your business. Whether it is legislation, education, legal services, publications, repair service or cloud-based services, please indicate which issues are most important to you. The very best suggestions will receive a $100 gift card.

Please express your willingness to volunteer and suggestions to bob.goldberg@sfnr.com.

                        
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North American Retail Dealers Association
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Phone: 312.648.0649 or 800.621.0298 (US Only)
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