Overtime Wages – Will They be Changing?
05.08.17 | TAX Chat
On May 2nd, the House of Representatives passed a change to the Fair Labor Standards Act to allow private sector employers to give their workers paid time off instead of time and half pay for overtime.
Under the proposed bill, eligible employees, whose employers offer the option, would be able to voluntarily choose to receive comp time they can bank and use at a future date instead of immediate overtime pay. If they decide they want the pay instead, employees would have the option of getting paid, with the employer required to pay the overtime within 30 days.
The bill will now go to the Senate for a vote. If it does become law, employers will have to decide whether they want to offer it. For employers, it will require planning, tracking of hours and carrying the liability on their balance sheet.
Guest Blogger Marcy Greenfield can be reached at firstname.lastname@example.org or contact your Berdon advisor.
Marcy Greenfield is a Berdon LLP audit principal with more than 15 years of experience in public accounting. She specializes in providing both audit and tax services to clients in the real estate arena and in the manufacturing and distribution sector, including wine businesses.