What are new FLSA overtime regs likely to cost? New report assigns price tag

by Jared Bilski

Ever since President Obama issued an Executive Order to overhaul the FLSA’s overtime regs, HR pros everywhere have been wondering: How much is it going to cost employers? 
That’s a question Oxford Economics, a global analytics, forecasting and advisory firm, attempted to answer in a recent report.

Based on how much the feds bump up the minimum salary threshold to be overtime-exempt – currently set at $455 per week ($23,600 per year) – here’s what Oxford Economics estimates it’ll cost businesses:

• If the salary threshold increases to $610 per week ($31,700 per year), it’ll cost businesses $297 million nationwide.

• If the threshold rises to $808 per week ($42,000 per year), it’ll cost businesses $648 million.

• If the threshold climbs to a whopping $984 per week ($51,000), it’ll cost businesses $874 million.

While these numbers are staggering, they only represent administrative costs, not actual increases to workers’ take-home pay.

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