[Employer News] Overtime Regulations Updated

The U.S. Department of Labor in August announced that the final rules governing overtime eligibility for white collar workers under the Fair Labor Standards Act were now in effect. According to the DOL, the newly updated Overtime Security Rule strengthens and protects overtime pay for 6.7 million American workers.

Critics say the changes will eliminate overtime for millions of middle-class Americans.

Until the DOL develops a history of enforcement under the new rules, much of the interpretation will be left to employers.

IMPACT ON PEST CONTROL. So what does this mean for the pest control industry? "The new overtime provisions are not likely to impact the pest control industry to a large degree, although they do clarify important overtime provisions that should not be ignored," said Human Resources Consultant Jean Seawright, Seawright & Associates, Winter Park, Fla. Seawright works with many industries, including the pest control industry, to help companies comply with such laws and regulations. "Now, more than ever before, with the increased focus and awareness of who qualifies for overtime and who does not, it is important for PCOs to evaluate their pay classifications and make necessary adjustments. Investigators are much less likely to tolerate noncompliance now that they have specific regulations and examples to support their position."

According to Seawright, in the past, many pest control technicians have qualified for an overtime exemption under Section 7(i) of the Fair Labor Standards Act. This particular section of the regulations remains unchanged. In those states that have not allowed the use of the 7(i) pay plan or for those employers who do not meet the requirements for use of the pay plan, most technicians were paid overtime and this, also, remains unchanged under the new rules. Pest control technicians have not in the past, and do not now, qualify for an overtime exemption under the Executive, Administrative or Professional exemption.

In terms of sales positions, Seawright says, most commissioned sales positions in the pest control industry met the tests for an outside sales overtime exemption under the old rules. Under the new rules, these tests are even easier to meet for the typical pest control sales employee.

With regard to office staff, PCOs should ensure that only those high-level administrative employees who meet the tests for the Administrative Exemption are classified as exempt, Seawright said. Those administrative employees who perform routine office or clerical work remain eligible for overtime. Also, any employees who do qualify for the Executive or Administrative overtime exemption must now earn a guaranteed salary of at least $455 per week.

WHAT’S NEXT? Every pest control company is unique in its positions, pay plans and qualification for overtime exemptions. "One size does not fit all with regard to these new rules!" Seawright said. "Just because an office manager at one pest control operation qualifies for an overtime exemption, does not mean that an office manager at another operation will qualify. These decisions must be made on a case-by-case basis.

"The Fair Labor Standards Act is a complex law with many different facets and a trained professional offers the best opportunity to steer PCOs clear of liability," she added.