DOL 2016 Overtime RulesIn May 2016, the Department of Labor finalized revised regulations which affect the Fair Labor Standards Act’s “white collar” overtime xemptions. The regulations increase the salary threshold needed to qualify for overtime exemption from $455/week ($23,600 per year) to 913/week ($47,476/year). This final regulation has many implications for employers throughout the United States- 64% of businesses employ at least one employee who earns a salary of $47,476 or less a year. Any business that employs exempt workers with salaries under $47,476 are irectly affected by the new regulations and need to consider their best course of action for each affected employee.
The DOL Overtime update could affect you in many ways. One employee alone could increase costs by $1,500 per year. Once you combine this with additional hours or employees, the costs increase dramatically.
The end result of the final regulations will be that you have to reclassify many of your exempt employees to non-exempt and begin paying them on an hourly (or salaried basis) plus overtime. That means you will need to begin tracking these newly classified employees’ hours to ensure you are paying them properly and your business is protected in the event of an audit. If you do not track these employees’ hours, you should begin doing so immediately. Having an accurate calculation of hours worked per week will be very important as you seek to comply with these new
regulations.
Without an effective strategy, employers will face escalating labor costs! Employers should have a plan in place for each of these employees as they will become eligible for overtime pay.
Employee Self Service provides your salaried employees with convenient and secure access to punch in & out, enter hours worked, and transfer to different departments worked via their pc, smart phone, or kiosk.