The United States Department of Labor's long-awaited new rule on overtime was issued on April 23, 2004.  While much has been made of the new regulations in the press, the changes are not as dramatic as they may have been portrayed.  Some notable changes include:

The new overtime regulations will be effective on August 23, 2004.  Between now and then, employers are well-advised to review their overtime classifications and to adopt a policy to utilize the safe harbor provision.

• Increased salary level minimums to $455 per week.  Under the new regulations, an employee's salary must be at least $455 per week - or $23,660 per year - to qualify as an exempt employee, regardless of his duties.  This is a change from the previous minimum of $155 per week.
• A "super salary" exemption.  In a new provision, highly compensated individuals are now exempt if they are guaranteed pay of at least $100,000 per year and perform at least one of the duties of a professional, executive or administrative employee.
• No limitations on non-exempt time for exempt employees.  The new regulations do away with requirements that an exempt employee spend at least 80 percent of his or her time on exempt work and focus instead on the duties performed without establishing any set time limitation.
• Single day deductions for disciplinary reasons.  The new regulations permit pay deductions for exempt employees in increments of an entire day for certain disciplinary reasons without sacrifice of the exemption.
• A safe harbor for employers with adequate policies.  A new provision permits employers with adequate policies and practices to remedy mistakes made in deductions from exempt employees' pay without losing the exemption.