Our NYC CPA firm provides guidance on timely tax and accounting issues and those relevant to nyc small businesses. This December, new Department of Labor (DOL) federal overtime rules were scheduled to be implemented. However, a federal judge has blocked these overtime changes which would have doubled the Fair Labor Standards Act’s (FLSA’s) salary threshold for exemption from overtime pay. The new overtime eligibility rules, if eventually passed, could impact 4 million Americans and thousands of employers who would be required to pay employees who work more than 40 hours per week and earn less than $47,476 annually a time-and-a-half premium. This change would have a tremendous impact on small business payrolls and staffing practices.
The DOL believes that the new overtime rule will offset income erosion due to inflation and deliver fairer pay to employees with lower wages who are currently exempt from overtime pay. While the overtime extension rule is now on pause , it could still be implemented in the future. While this law is in limbo, employers should continue to follow the existing overtime regulations and to avoid confusion, it may be prudent to postpone making any further pay or staffing moves until a final ruling is made. If you have questions about payroll, nyc taxes, New York City accounting or other nyc freelance or self-employed business issues, please contact our New York City accounting firm.