Engineering Inc. - July/August 2003 - 13

Talking FLSA Reform with Assistant Labor Secretary Victoria Lipnic R O N
AIRA In addition to advocating reforms vant as we think they should be
Victoria Lipnic, Assistant Labor Secretary, discusses her department's in
Congress, ACEC also has been to today's workforce. So that's proposed FLSA
reforms with ACEC President Dave Raymond. working closely with the U.S.
certainly our primary goal. Department of Labor to address Second, we want
the regula- concerns over the Fair Labor Stan- of confusion and generated a
on FLSA reform, ACEC also tions to be clear, so that all dards Act FLSA .
These ACEC- fair amount of litigation. Often- has developed legislation to
employers understand their obli- supported reforms were designed to times
employers that violate the further clarify the Act's cover- gations, and
all workers under- clarify the exempt status of salary basis test lose the
exemp- age of engineering firms, stand their rights. employees, making it
easier for tion for an entire class of specifically S. 237, which was
RAYMOND: The current regula- employers to classify their employ- employee.
So we're trying to introduced by Senator Lindsey ees as exempt or
non-exempt from make clear how the salary basis Graham R-S.C. . What has
tions make it difficult for firms the Act's minimum wage and test is
applied. been the reaction from Con- to classify engineering profes-
overtime requirements. gress to the draft regulations so The proposed
regulations sionals with two-year degrees Uncertainties in current FLSA
far, and do you anticipate leg- include a safe harbor for any and job
experience as exempt, regulations have subjected engi- islative action to
further FLSA employer that has a written pol- even though such individuals
neering firms to many unfair and reforms? icy prohibiting improper pay
clearly meet the spirit of the law. unnecessary enforcement actions.
deductions. As long as an How do the proposed regula- LIPNIC: For the most
part, Con- The proposed regulations would employer notifies its employees
tions address this issue? bring much needed clarity to the of the policy
and reimburses gress has shown a fair amount LIPNIC: They are particularly
rel- Act and make it easier for firms to any improper deductions then of
interest. We expect com- avoid costly lawsuits. evant to the engineering
profes- that employer would not lose ments from both the commit- Victoria
A. Lipnic, Assistant sion, since most engineering the exemption for any
employ- tees of jurisdiction and mem- Secretary of Labor for Employ- firm
employees probably are ees, unless it continues to will- bers who have a
particular ment Standards, recently met with going to fall under the
profes- fully and repeatedly violate the interest in labor and employ-
ACEC to discuss what the Labor sional exemption. One of our policy. ment
law issues. So far, the Department's reform initiatives goals is to make
[the rules] sim- responses have gone along party RAYMOND: Can you give us
a seek to accomplish. pler and easier to apply. lines, but we'll see what
comes sense of timing? When do you We're trying to make sure that out
overall in the comments. ACEC PRESIDENT DAVE see the new regulations
taking the professional exemption rec- Chairman [John] Boehner's RAYMOND:
ACEC has been effect? What is the timeline for ognizes that, in today's
work- committee has held hearings pleased to work with your promulgation
of regulations? force, people don't always get on this subject, and about
the agency over the past year to their experience and training need to
revise the 541 regula- LIPNIC: We are presently going address FLSA
concerns, and we through a four-year degree pro- tions, for a number of
years. through a 90-day comment were pleased to see the proposed gram.
They may get training They had the U.S. General period, because it's a
major eco- reforms that the department through the military, at a com-
Accounting Office GAO do a nomic rule. We expect to receive released on
March 31, 2003. munity college or through on- study a few years ago. GAO a
substantial number of com- Can you give us a broad sense of the-job
experience. We believe recommended that these regu- ments. Depending upon
how what you believe the new regula- that's relevant to how the lations
were sorely in need of many comments we receive, any tions will
accomplish? exemption should be applied in updating. I think that the
final rule has to be based on the professional setting. GAO report is from
1999. In ASSISTANT LABOR SECRETARY review of the record. We hope to fact,
we referenced it, fairly VICTORIA LIPNIC: First and fore- RAYMOND: The
salary basis have this done sometime early extensively, in the preamble to
most, we want to make sure that test has been the cause of con- next year.
As you know, regula- our proposed regulations. these regulations provide
protec- siderable confusion and gotcha tory proposals can take years, FLSA
reform is an area that tion to the workers that they lawsuits over the
years. Can you but that's not our intention on Congress has certainly been
were intended to protect. Since discuss how the proposed regu- this issue.
[Note: Comment pushing the Labor Department the regulations have not been
lations will address this concern? period ended in late June.] on for a
number of years. changed in 54 years, I think it's We've taken up the
mantle LIPNIC: You're right that the RAYMOND: In addition to sup- fair to
say they're more than a and decided to do something about it. salary basis
test has caused a lot porting your regulatory track little out of date, and
not as rele- l August 2003 ENGINEERING INC. 1 3 July
Engineering Inc. - July/August 2003

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