Managing Pay Changes During Overtime Rule Uncertainty

​U.S. employers have been in legal limbo when it comes to compensating employees under the Obama administration’s revised Fair Labor Standards Act (FLSA) overtime rule. (Employers subject to the FLSA are required to pay nonexempt employees working more than 40 hours per week at a rate of time-and-a-half.) After the revised rule was issued last May, many employers either reclassified some exempt employees (those earning salaries below the new threshold) as nonexempt (paid hourly), or raised their pay to avoid reclassification.
Source: New feed 2