California Employer's Guide To The Federal Overtime Exemptions
After more than 50 years, the U.S. Department of Labor ("DOL") has issued new regulations revising the federal overtime exemption standards. The final regulations govern employers in virtually all industries and took effect in 2004. They define the "white collar exemptions" from the federal minimum wage and overtime rules for executive, administrative, professional, computer, and outside sales employees. They establish three tests that employees ordinarily must meet to be exempt. They also encourage employers to review their payroll practices and establish written policies that take advantage of a new "safe harbor" rule.
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