Interstate Labor Standards Association - Part 541

Dr. David Weil addressing ILSA

I spent almost a week in Oklahoma City at the 50^th Annual Meeting of the Interstate Labor Standards Association (ILSA).  It is a national group of government officials who administer and enforce wage payment related laws.  This year there were 21 states represented, but I think most interesting is the number of federal representatives from four different agencies that came to listen and present. 

The federal presentations focused on partnering with the states to provide more effective coverage;  human trafficking preventions, enforcements and victim services; and exemptions from the Fair Labor Standards Act (FLSA).  This blog addresses what was characterized as the most expensive mistake, misclassification of a non-exempt individual as an exempt individual under the FLSA Part 541, and the source of some lively discussion.  While no commitments were made, the feds did agree they were in Oklahoma City to listen and understand where the problems currently exist with the salaried Executive, Administrative and Professional exemptions from minimum wage and overtime .  Hawaii has similar salaried “white collar” exemptions from minimum wage and overtime, plus a Supervisory exemption. (See Hawaii Administrative Rules 12-20-2 through 12-20-5)  No federal draft of proposed regulation changes has been created yet so ILSA state representatives had an opportunity to provide some perspective.

Present at the ILSA 50^th Annual Conference were many of the individuals at the state level who had contributed to the current Part 541 regulations adopted in 2004.  The session with Dr. David Weil, Administrator of Wage and Hour Division, United States Department of Labor and Michael Hancock, Assistant Administrator for Policy, Wage and Hour Division, United States Department of Labor, was insightful from the perspective of both the state administrators as well as the candid comments from the feds.  Anticipating a federal minimum wage increase naturally causes the element of guaranteed salary minimum to be looked at although substantive concerns surrounding the Administrative exemption were clearly evident as well.

I had planned a trip to Maui to talk with SHRM-Maui on August 8^th which was postponed (because of Hurricane Iselle) to Sept. 19.  Now I’ll be able to share all the national perspectives in addition to our Hawaii rules.  I'm looking forward to having the local discussion on these issues.  See you in Maui!

If They Work, You Must Pay Them.

    

George Ricky sculpture outside
of Honolulu Museum of Art
powered by wind

 This blog is generated based on the number of calls we've had after many employees were sent home early or told to stay home Friday August 8, 2014, due to the weather forecast for Hurricane Iselle.  Employees want to know if they should be paid for that day.  Generally, the answer is no, there is nothing in the law that says an employee should be paid for an afternoon or day off.  The employer determines the schedule. With that said, if an employee has an agreement in writing that provides for how to handle leave from work, that document would prevail, for example a collective bargaining agreement between union and management. 

In preparation of Hurricane Iselle
protecting it from too much wind.

      On the flip side of  our  mantra to employers and the title of this blog, is the answer to employees "if you don't work, the law does not require them to pay you".  The definition of "work" having nothing to do with the quality or productivity of an individual, but that's for another day.