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)
Carat outlines ten trends for 2019 and what they mean for brands,
Davis & Gilbert discuss the FTC’s settlement with a public relations agency and its CEO, as well as a magazine publisher and its sole owner, alleging claims that they misrepresented paid endorsements as independent consumer opinions and commercial advertising as independent journalistic content.
Davis & Gilbert highlights the FTC’s recent decision that agreements reached by 1-800 Contacts, Inc. with a number of its competitors unlawfully restricted the competitors’ ability to engage in search engine marketing, to the detriment of both consumers and search engines.
Associate Justice Brett Kavanaugh was confirmed to the Supreme Court on Saturday, October 6, by one of the slimmest approval margins ever for a Supreme Court Justice. While the fall-out from the rancorous hearings will likely ripple-forward in expected and unexpected ways, one thing is for certain – Associate Justice Kavanaugh, just 53 years old, has decades ahead of him to shape the direction of our nation’s most powerful judicial body. A more important consideration for the advertising and marketing community – what can we expect to see from our newest Associate Justice on the topic of commercial speech?
The International Chamber of Commerce’s Advertising and Marketing Communications Code is a global self-regulatory framework that seeks to identify the do’s and don’ts for responsible marketing. The code gives best practices to follow to ensure legal, honest, decent and truthful communications.
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