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DOE Issues “Absolute Ban” on Overtime for Training and Education

On May 3, the Department of Energy (“DOE”) issued Acquisition Letter 2016-5 (“ AL 2016-5 ”), which provides guidance for managing overtime costs for training, and explicitly addresses overtime costs for training and education. The AL applies to all contracts and is effective immediately until cancelled. Federal Acquisition Regulation (“FAR”) Subpart 31.2 covers cost principles in contracts with commercial organizations. It stipulates a cost is only allowable only when it complies with all five requirements listed in FAR 31.201-2: Reasonableness Allocability Cost Accounting Standards/Generally accepted accounting principles Contract terms All of the other limitations in FAR Subpart 31.2 The limitations include the. Read More.

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New DOL Salary Levels for FLSA-Exempt Employees

The Department of Labor (“DOL”) has finally issued final rules revising the salary levels that will be used to determine if certain employees are exempt from the overtime provisions of the Fair Labor Standards Act (“FLSA” or “the Act”). These rules will appear in the May 23, 2016, edition of the Federal Register and have an effective date of December 1, 2016. Under the FLSA, employees are entitled to be paid time and a half for all hours worked in excess of a normal work week, usually 40 hours. However, the Act exempts employees in executive, administrative, or professional positions. Read More.

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FLSA Changes on Overtime Compensation Expected Summer 2016

By: Sara Crabtree , Manager Cherry Bekaert has been providing periodic updates on proposed changes to the Fair Labor Standards Act (“FLSA”) in regard to overtime compensation and how employers might be impacted by these changes. The Solicitor of Labor has now confirmed that the changes are expected to be finalized and announced during the late spring or summer of 2016, and will become effective 60 days after finalized. In March 2014, President Obama issued a memorandum to the Secretary of Labor, directing him to “propose revisions to modernize and streamline the existing overtime regulations” (under the FLSA). Although the President did. Read More.

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