A Look at the Sweeping Changes in Overtime Rule

OMA Connections Partner, Clark Schaefer Hackett posts this: “The U.S. Department of Labor (DOL) has released a final rule that makes dramatic changes to the determination of which executive, administrative and professional employees — otherwise known as “white-collar workers” — are entitled to overtime pay under the Fair Labor Standards Act (FLSA). The rule will make it more difficult for employers to classify employees as exempt from overtime requirements. In fact, the DOL estimates that 4.1 million salaried workers will become eligible for overtime when they work more than 40 hours in a week.

“The changes will have a tax impact as well: Employers’ payroll tax liability will increase as they pay overtime to more employees who work in excess of 40 hours a week or pay higher salaries to maintain overtime exemptions.”

Read more from Clark Schaefer Hackett and watch your email for OMA’s webinar on the topic on June 29.

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