The Department of Labor Overtime Rules - Simply Stated

 The Department of Labor has finalized new overtime rules under the Fair Labor Standards Act, ending months of speculation about how the proposal, which was introduced last July, would affect employers.

"While the previous salary threshold for exempt employees was quite low and clearly in need of some adjustment, the size of the increase will likely place an undue burden on those employers who continue to struggle in a still-stagnant economy." 
                                      - Howard J. Kass, CPA, CGMA, AEP, Partner

While the complete rules package is not yet available, key revisions include:

• Exempt salary threshold increased to $47,476 from $23,660
• The salary threshold will automatically update every three years, and is anticipated to top $50,000 by 2020
• The new rules are effective Dec. 1.

White House officials said the change will expand overtime rights to 4.2 million workers who are currently excluded, and are projected to cost employers an additional $1.2 billion a year in increased wages. You can learn more about the rules here. 

Read more tax and business news from Howard Kass 

We have already spoken with many clients and ready to start the converation with you so you will better understand how the new overtime rules may affect your business. Contact me at hkass@zinnerco.com or any of the professionals at 216.831.0733 to learn more.