In anticipation of the upcoming changes to the Fair Labor Standards Act (FLSA), businesses may consider conducting an audit of job position, job duties and salary thresholds. The December 1 deadline will be here before you know it and it’s best to get prepared now, so that you can remain FLSA compliant this winter.
Businesses that take the time to conduct an FLSA audit of current employee positions now will be better able to handle potential changes when the FLSA becomes effective in a few months. As discussed in “Q&A: How can we safely conduct an FLSA compliance audit?,” posted by Holly Jones on HR.BLR.com, businesses change, job responsibilities change and, very soon, the FLSA guidelines will also change. All of these changes can lead to reclassification of job duties, salaries or the exempt/nonexempt status of your employees.
Be FLSA Compliant and Control Overtime with Strong Payroll Solutions
The results of an FLSA audit could show that the primary duties for certain employees have shifted away from exempt tasks and that employee may now be classified as nonexempt, or the reverse situation may apply. There might be strategic reasons to reclassify positions based on salary changes, due to the thorough review of duties, or the amount or percentage of time employees are performing certain duties. Reclassifying employees as nonexempt may be necessary for payroll or accounting purposes. For example, there may be employees that meet the duties test for a white collar exemption; however, hourly pay or overtime entitlement would more fairly compensate them for the work that they do. However, overtime pay can quickly consume payroll budgets and impact the business.
Keeping close tabs on overtime hours may be a new necessity for businesses trying to control costs in light of reclassifying employees. Overtime Hours Rules seamlessly integrates with Microsoft Dynamics GP and you can establish consistent overtime rules for employees, departments, by position or rules that are unique to certain states or companies within your company. You can then manage them by day, week or pay period and the resulting overtime is automatically calculated with each payroll run. You can also set the rules to abide with FLSA requirements.
Position your businesses to comply with the upcoming FLSA changes and be confident that you have control over overtime hours. Contact Integrity Data for more information about Overtime Hours Rules and other payroll and human resources solutions to streamline these common tasks.