On May 18, the White House announced its official revisions toU.S. overtime rules — a change that will expand overtime pay to 4.2million U.S. workers nationwide who were previously ineligible forovertime pay. Now comes the challenge of successfully navigatingthese changes.

Much of the attention around these rules is focused on theimpact on employees’ wages and the consequential labor costdecisions companies might undertake (such as cutting overtime hoursor bonus/incentive pay) to maintain their bottom lines. But, thesechanges will also have a huge influence on employee benefitspolicies and plan options as employers decide on their approachesto stay compliant with the new regulations.

Employers’ compliancy strategies (such as reclassifyingemployees) will greatly impact both the availability and the levelof various employee benefits policies and plans. And accurateemployee reporting and classification — hourly versus non-exemptsalaried, etc. — will be critical to ensuring employees receiveadequate benefits compensation related to changes in benefitslevels and new eligibility for certain benefits.

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