AIA Praises New Labor Regulations

April 21, 2004

The American Insurance Association has issued a bulletin supporting The U.S. Labor Department’s update of overtime regulations. The AIA said it expects the new rules “will help end needless litigation, as well as reduce conflict and confusion amongst employers and employees.”

“These revisions are long overdue, and the changes will allow for a more sensible, clearer application of the Fair Labor Standards Act,” stated AIA counsel Ken Stoller.”

He indicated that the “white-collar” regulations in the Fair Labor Standards Act (FLSA) have not been substantially updated since 1954, even though the workplace has changed drastically since then.

“Old, outdated rules hurt both employers and employees,” Stoller stressed. “Trying to figure out whether an employee with independence and leadership responsibilities is an ‘exempt’ executive, for example, has led to unnecessary litigation and sometimes conflicting judicial rulings. We commend the Labor Department and the Bush Administration for bringing clarity to a confusing situation.”

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