Revisions to the overtime pay regulations under the Fair Labor Standards Act took effect on Aug. 23, 2004. These Labor regulations determine which employees are eligible for "time and a half" overtime pay for hours worked in excess of 40 in a workweek, and which employees are "exempt" from the overtime pay requirements. The new regulations have also modified the tests that determine whether an employee is "exempt" or "non-exempt." In light of the new regulations, employers should consider the following:

• Review the classifications of all exempt and nonexempt employees. If every employee in your business is treated as exempt, or if an overwhelming majority of them are, this may be a problem.
  
• Revise or adjust formal job descriptions as necessary.
  
• Adjust compensation of lower-paid employees, if necessary and advisable, to reflect changes in the revised exemptions.
  
• Adjust compensation of higher-paid employees to come within the scope of the new exemption for highly compensated employees.
  
• Consider the adoption of written workplace conduct rules applicable to all employees in order to be able to suspend exempt employees for nonsafety-related workplace misconduct, which is a new feature of the revised rules.
  
• Consider adopting a policy concerning improper deductions from the salary of exempt employees.
  

Since these overtime law changes are new, and have to be considered along with Massachusetts law as well, consult an attorney for guidance in how to make adjustments for your organization, especially before changing a formerly "nonexempt" position to exempt status. There is one thing you must do - comply with them.