Obama Signs Memo to Strengthen Overtime Pay Rules

President Barack Obama signed a presidential memo this month directing the Dept. of Labor to come up with new overtime rules in order to make more workers eligible for time and a half pay. Obama has made it clear that he will bypass Congress when necessary to take action on economic initiatives. This is currently one of his most far-reaching executive actions this year even though new rules wouldn’t take effect most likely until 2015.

The new overtime pay rules would be focused towards workers on salary who earn more than $455/week and are ineligible for overtime due to management titles even though their actual job duties include few supervisory capacities. New regulations could change the definition of “supervisor” according to employment law. The salary/week limit separating workers who get paid overtime and those who don’t was last raised in 2004 by the Bush administration. Prior to 2004 it hadn’t changed since the 1970’s.  

Those in support of new overtime rules feel that millions of American workers could benefit from a change. Those who are against the change feel that increasing the number of workers eligible for time and a half pay for overtime would create a burden too heavy for small businesses and could potentially cost Americans jobs.  

Obama’s focus isn’t limited to overtime pay rules. This year, the President is also focused on federal minimum wage. He hopes to increase worker pay this year by calling on Congress to increase the minimum from $7.25 to $10.10.

For additional information on employment law, federal minimum wage and overtime regulations get in touch with the experts at Blumenthall, Nordrehaug & Bhowmik. 

Defining the Written Employee Contract

There are times when an employee is asked to sign a written employee contract. Before we can discuss when you should and should not consider agreeing to sign such a document, it’s important that we clearly agree on an exact definition.

What is a Written Employee Contract?

A written employee contract is a document provided (typically during the hiring process) to set forth terms of the relationship between the employer the employee. Both you and the employer sign the document. Entering into a written contract is not necessary with every position. Actually, use of the written employee contract is an exception to the normal practice during the hiring process – not the rule. But it is important to know what this particular type of document entails so that you can better understand when it might be appropriate or even possibly advantageous to agree to sign on the dotted line.

What is Included in a Written Employee Contract?

The written employee contract will clearly state the employee’s job description. It will also clearly state the agreed upon salary. In addition to this other items related to the employment relationship can be specified including: the length of the job (1 month, 2 years, indefinite, etc.), additional information regarding the employee’s responsibilities on the job, limitations on employee activity once the job is complete in order to avoid competition, protection of the company’s trade secrets/client lists, specified grounds for termination, additional benefits (vacation, disability leave, health benefits, etc.), ownership rights of employee’s work during the duration of the contract, methods agreed upon for resolution of any disputes arising as a result of the employment relationship, etc.

The written employee contract isn’t just one more piece of paperwork dragging the hiring process out. In some instances, it can be a vital element that protects both the employer and the employee from negative situations that could damage team morale, employer/employee relations, your ability to successfully complete the job at hand or your opportunity to fully enjoy the full extent of benefits that were promised during the hiring process.

Find out more about the advantages and disadvantages of signing a written employee contract in upcoming articles here on the Blumenthal, Nordrehaug & Bhowmik blog or get in touch today to talk to a legal expert on employment law.