A lawyer with Eastman & Smith Ltd. warned employers at a Toledo Regional Chamber of Commerce event Thursday about the imminent changes to overtime and exemption rules for white-collar workers.

“Most likely these changes will have a huge effect on employers and most likely an adverse effect on employers,” said Jim Yates to about 20 people at the chamber event about the U.S. Department of Labor rules released this week. “This will cost employers who have to institute a payroll or time-tracking system.”

During his presentation, Mr. Yates summarized the proposed changes for executive, administrative, professional, and outside sales workers to gain exempt status.

The changes would affect managerial and supervisory workers, possibly entitling them to overtime pay that they haven’t received in the past. It would affect employers whose employees make less than $50,440 a year.

“The impact on small businesses will be huge,” Mr. Yates said, in part because it is more difficult for small businesses to pass on rising labor costs to their customers.

The Department of Labor will put these changes into practice after a 60-day window during which people can make comments about the proposal and suggest modifications. The commenting period ends Sept. 4.

Currently, white-collar workers are exempt from minimum wage and overtime provisions of the Fair Labor Standards Act so long as they pass a “duties test,” which includes not performing manual labor, and a “salary test,” which means making at least $23,660 annually.

Under the proposed changes, urged by President Obama, this salary base-line would more than double to $50,440. According to an estimate made by the Department of Labor, almost 5 million workers would lose exempt status and be entitled to overtime pay, and another 6.3 million are estimated to have their exemption clarified.

Contact Andrew Koenig at: akoenig@theblade.com or 419-724-6050.

First Published July 10, 2015, 4:00 a.m.