President Obama to overhaul overtime policy

In a move viewed as having political ramifications in an election year, President Barack Obama will attempt to make sweeping policy changes regarding payment of overtime to workers under the Fair Labor Standards Act, according to a report from The New York Times. The changes are expected to affect employees who are currently working under certain classifications that don't require companies to pay overtime for any hours worked over 40 in a week.

The FLSA allows corporate overtime exemptions for employees working in outside sales, administrative, certain computer-related job functions and those classified as executives. According to Forbes, the changes the president is proposing - which would reclassify a large number of employees and make them eligible to receive overtime pay - could potentially result in a number of lawsuits being filed against the U.S. government.

Employers can very easily abuse the current FLSA rules governing overtime, as well as time and attendance, according to the New York Times, citing comments made by officials in the White House. The website also says the move by the president is his way of leveling the playing field between companies who reap huge profits from their business operations, and employees at the lower levels who do the work that adds financially to the bottom line.


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