b'LEGAL MATTERSLEGAL MATTERS U.S. Department of LaborModifies Overtime ExemptionsSTEVEN E. BERS, ESQ. // PVA GENERAL COUNSELP assengervesselownersshouldwill be stationed where on a given sail- founded and should be basis for con-note a recent change to the Fed- ing is not necessarily routine. sultingknowledgeableemployment eralFairLaborStandardsActcounsel.Thechangeinregulation overtimeregulations,limitingwhichToqualifyasanadministrativeem- does not alter the availability of the supervisors and managers can be com- ployee,theindividualmustdopri- Federalseamanexemptionthathas pensated on an overtime-exempt flatmarilyclericalworkinvolvedintheno salary threshold but applies only salaried basis. For lesser-paid managerspolicies and direction of operation oftoindividualsemployedanswerable and supervisors working in the passen- the employers business.For example,to the master and primarily in the ser-ger vessel industry, the revised regula- vice to the vessel as a means of trans-tions may newly compel the paymentportation, such as COI crew, masters, of overtime for hours worked over 40Effective Jan. 1, 2025,and engineers. in a single workweek, which is not un-common during high seasons.the salary thresholdsEffectiveJan.1,2025,thesalary to qualify as an thresholdstoqualifyasanexempt The Fair Labor Standards Act classi- exempt executiveexecutive or administrative employee fies certain supervisory or managerialwillincreaseto$1,128perweek,or employees as executive or administra- or administrative$58,656dollarsperyearannualized. tive, exempt from overtime. That is,employee will increaseNote the impact: if a passenger vessel these employees can be paid on a flatsupervisor is being paid an annualized salary basis, provided their positionsto $1,128 per week, salaryof$55,000peryear,effective requireindependentjudgmentandor $58,656 dollars Jan. 1, 2025, that supervisor must be discretionandfurther,iftheyareprovidedovertime,andstrictrecord guaranteed a weekly salary of at leastper year annualized.keepingofhours-workedwillbere-$844aweek($43,888,annualized)quired. That is, for the supervisor in effective July 1, 2024. the example, either overtime must be the director of marketing or the pub- initiated,oranemployercanavoid To qualify as an executive employee,lic relations director might qualify asovertimeandrecordkeepingobliga-the individual must supervise a partic- anadministrativeemployee,eveniftionsbyincreasingtheemployees ular employer function or department,the employee does not supervise twosalary above the $58,656.00 threshold.including the regular supervision of atother employees. Actual job function, least two full-time employees. A shiftand not titles, determine eligibility forPastincreasesintheovertime-ex-supervisor or galley supervisor mightovertime exemptions. emptsalarythresholdrequirements qualify as an executive employee if thehavebeenfarmoremoderatethan individual is making non-routine de- Acommonmisconceptioninsomethe$12,000annualizedincrease cisions and not merely following dic- corners of the passenger vessel indus- scheduled for 2025. The increase will tated routine repeatedly. By example,tryisthatfrontlinesalespeoplearerequire every employer to address the merely assigning employees pursuantovertime exempt and can be paid onpaystructureforanycurrentover-to an office-generated schedule is rou- a flat salary or commission withouttime-exemptemployeeearningless tine but deciding which crew memberovertime.Thisisalmostalwaysun- than $1,128 per week.FOGHORN 36'