Evening star. [volume] (Washington, D.C.) 1854-1972, 1940-10-14
Regulations Changed
On 'White-Co||ar'
Overtime Pay
Thousands of Workers
No Longer to Receive
Time-ond-HuIf Rate
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(Continued From First Page)
overtime requirements of the act
has been widened to include the
artistic professions. To qualify as
a professional, an employe must be
paid at least 5000 a month. This
salary requirement, the wage and
hour division explained, does not
apply to licensed members OF the
legal and medical professions. nor,
under the regulations, are employers
required to pay graduate chemists,
engineers, etc, 5000 month. II
not paid this amount, however,
such employees are entitled, under
the regulations. to time and a hall
for all work over 40 hours a week.
The definition of outside sales
man" has been broadened to exempt
driver statesmen" from the mini
mum wage and overtime pay re-
uuirements of the law. The deflni-
ton has been further amended to
assure the exemption of advertising
solicitors working on publication and
radio advertising contracts and
freight solicitors.
The new definition Of admins
trative employe and the broaden
ing of the professional classification
will each add at least 100000 per-
sons to the group exempt from the
overtime provisions of the law, Col.
Fleming estimated.
Hearings Held Earlier.
During the summer the wage ana
hour division held hearings on pro-
, posed changes in definitions. Under
the Fair Labor Standards Act en-
ployes listed as executive, admins
trative, professional and outside
statesmen" were specifically exempt
ed from the overtime requirements
of the law. In announcing the new
definitions, Col. Fleming made pub
lie . report and recommendations
submitted by Harold Stein, who
presided at the hearings held on
the proposed revisions. These rec
concentrations are the basis OF the
amended regulations.
Under the new definition an "eX-
ecutive" employe must meet six
tests:
/. His primary duty must consist
Of the management of the estao-
hshment in which he is employed
2. He must regularly direct the
work of other employees.
8. He must have the authority
to hire or discharge other employees,
or his recommendations on hiring
or discharging must ordinarily De
given particular weight.
4. He must customarily exercise
discretionary powers.
5. He must receive a salary OF not
less than $50 week.
6. His hours Of work of the same
nature as that performed by non
exempt employees must not exceed
20 per cent of the number OF hours
worked each week by the nom
exempt employees under his super
vision.
administrative" Class.
Under the new regulations an
administrative" employee has been
given q separate definition. Pre-
viousIy executive" and admins
trative" were classified jointly. The
administrative" group Is q large
and important one, the report
points out, and includes such per
sons rs bank tellers, personnel and
credit managers, buyers, supervisors
Of machine tools. safety directors,
claim agents, auditors, wage rate
analysts, tax experts and many
others.
The new definition exempts three
types of administrative" employees.
All must be paid 5000 a month or
more, and all must be engaged IN
non manual work requiring the
exercise of discretion and independ-
ent Judgment The first type OF
employe exempted is one who regu-
larly and directly assists an eXecu-
tive or another exempt admins
trative employee. The second Is one
who performs only general super
vision, responsible non-manual Of
flee or field work directly related to
HHud6cLucllt pollCy, dioiiS oPeSAoi
lied or technical lines requiring
special training, experience or
knowledge. The third type is an
employe whose work involves the
execution under general supervision
only of special non-manual assign
ments related to management poll
cies or general business operations.
In discussing the salary require
ment the report says: THE employees
for whom exemption Is sought under
the terms administrative have ex-
tremely diverse functions. 1t is
further evident that in many in
stances their function is difficult to
identify, although it may we'll be
important. In such situation the
final and most effective check on
the validity Of the claim for exemp-
ton is the payment of salary COM
mensurate with the Importance sup
posedly accorded the duties in ques-
ton. Furthermore, a title alone is
Of little or no assistance in deter
mining the true importance OF an
employee to the employer
New Salary Requirement.
The findings Of the Federal Per-
sonnet Classification Board were an
e. IT,. All