Fair Labor Standards Act (FLSA)

Employee Classification Changes Coming Your Way: Overtime Compensation Costs Could Rise

Employee Classification Changes Coming Your Way: Overtime Compensation Costs Could Rise

Do you struggle with determining if a position is exempt or non-exempt from overtime?  If so, pay attention because in March President Obama issued a directive to the Department of Labor (DOL) to simplify regulations under the Fair Labor Standards Act (FLSA). Sweeping changes are expected to be announced in November 2014 that include significant emphasis on how overtime exemptions are determined for executive, administrative, and professional employees commonly referred to as “White Collar Exemptions.” These changes, which do not necessitate congressional approval, could increase your organization's overtime compensation costs.