Administrative and Executive Overtime Exemption Just Got Harder

Last week, the Biden administration announced changes to the Wage and Hour rules regarding exemptions from overtime. Many employers put administrative and executive type employees on salary and expect them to be exempt from overtime. Salaried doesn’t necessarily mean they are exempt on its own. These new rules will make that exemption a good bit harder to take and could significantly affect our members.

As mentioned above just because you pay an employee a salary it doesn’t mean that they are automatically exempted from overtime. It is possible to pay someone overtime when they are on salary but that is beyond the scope of this article.

The most common “misclassification” violation we have seen in gins over the years is claiming an employee is exempt from overtime when they are not. In order for the executive or administrative employee to be exempt from overtime they must meet two things. The first is the duties of the job must meet the exempt duties and they must be paid above a certain amount on a salary basis. The duties have not changed and can be found in the Fact Sheets HERE.

What has changed is the minimum weekly salary that these employees must be paid in order to qualify even if they meet the duties of executive, or administrative work. Beginning July 1, 2024, employees must make $844 per week or $43,888 per year and starting January 1, 2025, employees must make $1,128 per week or $58,656 per year. The next change will be determined by the department by a formula by July,1 2027.

What does this mean? Many gins use the executive or administrative exemption for key office and gin employees. Careful consideration of these new pay levels in combination with the duties found in the Fact Sheet 17 linked above must be given. It is very easy to mis-classify a worker as exempt when they’re not and this rule makes it that much harder.

Wage and Hour’s Page on New Rule

You can find information on paying a non-exempt worker a salary. It can be done but it takes some planning. Search the internet for “salaried non-exempt” or “calculate overtime for salaried employee” and you’ll find a lot of articles by attorneys and HR professionals on how to navigate those waters.

DSF

H-2A Worker Protections Rule Dropped

Last Friday, the Department of Labor dropped the “Improving Protections for Workers in Temporary Agricultural Employment in the United States” Rule. This 600 page document outlines a number of significant changes to, primarily, the H-2A program that will impact these employers in a big way.

I have not had the pleasure of reading the whole 600 page document but the DoL has consolidated it to a website with links to various parts of the rule and tools to help employers. I will outline just a couple that will make your blood boil just a bit.

Immediate effectiveness of AEWR adjustments
The Adverse Effect Wage Rule (AEWR) is adjusted every year. The new AEWR is normally published in mid to late December with an effective date about the first of the new year… normally 14 days before it takes effect. The new rule makes the new AEWR effective immediately upon publishing. This means no time for the employer to prepare for the new wage or try to get finished up before the new wage takes effect. i.e. no warning.

Mandatory Disclosure of all recruiters
The new rule mandates that all recruiters for an H-2A employer must be disclosed in the documents when applying for the workers. We can only assume this is the beginning to crack down on illegal extortion some recruiters were making in foreign countries in order to recruit workers.

Anti-Retaliation Measures (Pro Union Measures)
It’s always been illegal to retaliate against workers for sticking up for their rights but this goes many steps beyond that. It requires employers to open their housing and gathering places to anyone the workers ‘invite’ in. This means you may not have total control over your own property since your housing may be on your premises.
The rule also adds anti-retaliation rules for employers doing almost ANYTHING to stop or try to convince workers not to unionize or “collectively protect themselves”.

There are many many more but this article is already too long. Please follow the Link below to the DoL’s page. You will find links there to the many aspects of the new rule and employer tools for compliance.

It is our expectation that this rule will be sued before it goes into effect but we wanted you to be aware of these changes as many gins that us the H-2A program will be making arrangements soon. Your agents or attorneys are scrambling to make sense of this HUGE and unnecessary rule. I am also attaching the National Council of Ag Employers response to the rule. MORE TO COME.

https://www.dol.gov/agencies/whd/agriculture/h2a/final-rule

Gin School Coming to Tifton

In case you weren’t aware, the 2024 Mid-South / Southeast Gin School will be held in Tifton, GA. This is the first time in a long time that a gin school has been held at a location away from the Gin Lab. In the mid-90’s an abbreviated gin school was held in the Southeast as so many gins were being built or upgraded.

We’re pleased to be working with the National Cotton Ginners Association to bring the school to the Abraham Baldwin Agricultural College and University of Georgia Campuses. Most of the classes will be held at ABAC with some classes and events being held at the micro-gin on the University of Georgia Campus.

We hope you will help us make this a great school. More information can be found on the flyer below and/or by visiting the Gin School website.
https://www.cotton.org/ncga/ginschool/index.cfm

Ginners of the Year

Well, we’re a little behind in congratulating this year’s ginners of the year. We actually have two people to congratulate for this year. The Southeast Ginner of the Year for 2023 is Drake Perrow of Cameron, SC. We also have the National Ginner of the Year in our region and that recipient is Wes Morgan.

Drake Perrow was presented his award at the Southern Southeastern Annual Meeting in Hilton Head, SC back in January. Wes received his award at the National Cotton Ginners Annual Meeting held with the National Cotton Council meeting in February in Orlando, FL.


A very good article on all the National Ginners Award winners, including Wes Morgan’s award can be found here:
https://www.cottongrower.com/cotton-production/ginning/morgan-whitelock-honored-by-national-cotton-ginners-association/#:~:text=Wes%20Morgan%2C%20a%20veteran%20North,organization’s%202023%2D24%20Charles%20C.

Drake Perrow is Partner and General Manager of Cameron Cotton and Seed in Cameron, SC. Drake’s father and uncle bought the small operation in the 70’s and Drake was brought in as a partner.

We are so proud of our members. We have great leadership in the Southeast and it shows in these two Ginners of the Year.

Passing of Hollis Isbell

It is with profound sadness that we mark the passing of a true leader in the cotton industry. Hollis Isbell of Tuscumbia, AL was one of those true southern gentlemen and leader for the cotton industry in our region. Mr. “H” as many people knew him, held just about every position in the leadership of Southern Cotton Growers and was instrumental in the shepherding of Southern Southeastern as we transitioned in the mid-90’s to the organization we are today.

Mr. Isbell was involved in policy development and work with all aspects of cotton farming up to his retirement several years ago turning the operation over to his sons. Hollis Isbell passed on April 10. He was 92.

On a personal note, Hollis was President of Southern Cotton Growers when I was hired. The Presidents of both Southern Cotton Growers and Southeastern Cotton Ginners were involved in my selection. I will be forever in Mr. H’s debt for giving me a chance. He will be missed. Our sincerest condolences to the Isbell family.

Arrangements are below:
https://www.morrisonfuneralhomes.com/obituaries/Hollis-Isbell-2/#!/Obituary

First Aid and CPR Classes

The last two years Southeastern Cotton Ginners Association has held train the trainer programs for members. To change things up a little, the idea of a first aid / CPR training was discussed at the mid-year board meeting. Interest for such a course was high so we will be having 4 classes this spring and summer spread across our member states.

The idea of first aid / cpr training came about due to 3 main reasons. The first being multiple incidents at gins this past year involving severe lacerations as well as medical events. In these cases, immediate first aid was not required and first responders arrived quickly to handle the situation. One cannot help but to think what if immediate first aid was needed, is there anyone on staff at your facility that could provide first aid or cpr until first responders arrive. The second reason to have a certified first aid / cpr trained individual on staff would be location and timing. Not all of our gins are located close to town and there may be long response times for first responders. An employee on staff certified to perform first aid or cpr in an emergency situation could save someone’s life or reduce the severity of injuries. The third reason is that first aid / cpr training is a requirement of the NCGA Certified Ginner program. We have many members that participate in the certified ginner program, and it is important to stay up on the training requirements. First aid/cpr training should be renewed every two years.

This is an American Heart Saver First Aid and CPR certification course. Course topics will include :

First aid basics

Medical and injury emergencies

Preventing illness and injury

Adult CPE and AED use

This course is for anyone with little to no medical training. Upon completion, students will receive a course completion certification card, valid for two years.

The first two of these classes will be held in Alabama and Georgia. The South Carolina and North Carolina/Virginia classes will be held sometime in late June. Class Size is Limited. Pre-Registration is required. Check-in will begin at 8:00am with class running from 8:30am-2:30pm and boxed lunches will be provided. Trainers ask that attendees be able to speak, understand and comprehend English. There will be a $100 fee associated with the AHA first aid/cpr certification. Please see registration links below and call the association if you have any question.

Alabama First Aid/CPR Training Class

Prattville Fire Department

201 Gin Shop Road

Prattville, AL. 36067

May, 14th 2024

Georgia First Aid/CPR Training Class

ABAC’s Georgia Museum of Agriculture

Peanut Museum

1392 Whiddon Mill Road

Tifton, GA. 31794

May, 15th 2024