On May 17, 2016 the U.S. Department of Labor announced changes to overtime compensation for full-time/salaried workers across the U.S. This impacts advertising agencies due both to their unique workforce composition as well as the salary levels affected by the changes.
The new rule, “Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales and Computer Employees,” increases the current salary level subject to overtime (OT) pay from the previous threshold of $23,660 per year to a new threshold of $47,760.00 per year. Full-time/exempt employees within these classes and pay ranges will become newly eligible for OT pay.
The new regulation will put an enormous compliance burden on ad agencies within a narrow period of time (less than a year) as HR managers scramble to convert employees to hourly tracking schedules.
4A’s has worked proactively, from the moment the draft rule was proposed in 2015, to improve key provisions that would have otherwise adverse affects—on both agencies and their employees.
Thanks to these efforts—and continued lobbying (below)—the final OT pay rule is more manageable for agencies to implement in a number of respects:
Despite these improvements, the 4A’s Washington team continues to lobby members of Congress who oversee labor department funding and policy. These include members of the House Appropriations Committee, the House Education and Workforce Committee, the Senate Committee for Health Education Labor and Pensions and the various sub-committees.
Read more about 4A’s advocacy on the new Federal OT Pay Rule:
“Expect Disruption With New Overtime Rules” (MediaLife, May 24, 2016)
“How The 4A’s Is Tackling the Overtime Pay Issue in Washington” (Campaign US, March 31, 2016)
“The Big Payback—Agencies Brace for Obama’s New Overtime Rules” (Campaign US, March 28, 2016)
As you know, the 4A’s works to advance the success of the advertising industry in part through our support and stewardship of advertising self-regulatory programs. For almost 50 years, the advertising industry has supported advertising self-regulatory programs that have earned the well-deserved reputation as the “gold standard” for self-regulation and been recognized in the US […]
Mary Meeker’s annual report on key global Internet trends. Topics range from online advertising to using data to improve customer satisfaction and accessibility to the rise of the on-demand and remote workforce. Not to be missed!
The 4A’s joins advertising trades to voice concerns over the Data Transparency and Privacy Act in Illinois.
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April highlights from Frankfurt Kurnit Klein + Selz’s Advertising Law Blog. Topics include cannabis marketing, SAG-AFTRA contract, using competitor trademarks in hashtags, and much more.
The 4A’s and other advertising trade groups oppose overarching opt-in consent requirements in the CCPA. Read the comments now.
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The 4A’s joins ad trades in expressing concern over the Texas Consumer Privacy Act and Texas Privacy Protection Act.
The 4A’s joins ad trades in expressing concern over Washington state’s Privacy Act.
Read the comments the 4A’s and other advertising trade groups submitted regarding an opposition to an expanded CCPA Private Right of Action.
Alison Pepper, SVP, 4A’s Government Relations, delivered a statement at the California Attorney General’s hearing in Fresno, regarding member agencies’ concerns about the California Consumer Privacy Act. Issues include consent, the use of publicly available data, and the conflation of pseudonymized data and personal information.
Davis & Gilbert discuss the latest rules California has set in regulating the advertising, promotion, and marketing of recreational marijuana, and how these rules could impact other states.