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2005 SESSION

059162768
SENATE JOINT RESOLUTION NO. 396
Offered January 12, 2005
Requesting the Virginia Employment Commission, with the assistance of the Department of Labor and Industry, to study the effect of new overtime regulations on employees in the Commonwealth of Virginia. Report.
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Patron-- Miller
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Referred to Committee on Rules
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WHEREAS, on August 23, 2004, final rules governing overtime eligibility under the Fair Labor Standards Act became effective; and

WHEREAS, these new rules were the subject of intense debate in the Congress for over a year; and

WHEREAS, there were attempts in Congress to block implementation of the new rules via legislation; and

WHEREAS, there is remaining controversy over the meaning of the rules and the impact the rules will have on employees; and

WHEREAS, under the regulations effective prior to August 23, 2004, employees earning wages at or below $8,060 per year were entitled automatically to overtime while employees earning over that level could qualify for overtime based on a further evaluation of their duties and responsibilities; and

WHEREAS, under the regulations effective August 23, 2004, employees earning less than $23,660 annually must be paid overtime compensation regardless of their duties and responsibilities while employees earning over that level could qualify for overtime based on a further evaluation of their duties and responsibilities; and

WHEREAS, under the regulations effective prior to August 23, 2004, an employee who spent more than 80 percent of his time performing nonexempt tasks was entitled to overtime, regardless of whether his work also involved supervision or management of other employees; and

WHEREAS, the regulations effective August 23, 2004, provide that an employee can spend unspecified amounts of time performing nonexempt tasks, yet be found exempt if his "primary duty" is management or supervision of other employees; and

WHEREAS, there is concern that the new rules may be interpreted in such a way that many persons entitled to overtime compensation under the regulations in effect prior to August 23, 2004 will no longer be eligible under the new regulations; now, therefore, be it

RESOLVED by the Senate, the House of Delegates concurring, That the Virginia Employment Commission, with the assistance of the Department of Labor and Industry, be requested to study the effect of new overtime regulations on employees in the Commonwealth of Virginia.

In conducting its study, the Virginia Employment Commission, with the assistance of the Department of Labor and Industry, shall (1) prepare a summary overview of the new overtime regulations; (2) identify the number of employees in the Commonwealth of Virginia subject to the regulations; (3) survey at least 10 of the Commonwealth's largest employers, and 10 of its smallest employers regarding their understanding and proposed implementation of the new regulations; and (4) review issues, benefits, and problems associated with implementation of the new overtime compensation regulations in at least three other states near the Commonwealth.

All agencies of the Commonwealth shall provide assistance to the Virginia Employment Commission for this study, upon request.

The Virginia Employment Commission shall complete its meetings by November 30, 2005, and shall submit to the Governor and the General Assembly an executive summary and a report of its findings and recommendations for publication as a House or Senate document. The executive summary and report shall be submitted as provided in the procedures of the Division of Legislative Automated Systems for the processing of legislative documents and reports no later than the first day of the 2006 Regular Session of the General Assembly and shall be posted on the General Assembly's website.