The new federal deduction for the premium portion of FLSA overtime increases the after-tax value of overtime for eligible employees, without increasing agency payroll costs. For agencies managing staffing shortages, this has operational implications.
The real question isn’t whether employees benefit. It’s how agencies respond in practice.
In our latest Workforce Management blog, Industry Solutions Managers Terry Trinidad and Richard Chiu breaks down:
• What the deduction does and doesn’t do.
• Why eligibility isn’t uniform across your workforce.
• The hidden operational impact on payroll and reporting.
Explore the blog here and see what steps your agency should consider:
No Tax on Overtime: What Transit Agencies Need to Know