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HR and Payroll for Business Central

HR and Payroll for Business Central

Designate Employee Overtime Status

The Fair Labor Standards Act (FLSA) is set for significant changes starting July 1, 2024. These adjustments will primarily affect the salary threshold for overtime eligibility. Initially, most salaried workers earning less than $844 per week will qualify for overtime pay. This threshold will increase on January 1, 2025, to include those earning less than $1,128 per week. This update will extend overtime protections to millions more workers, ensuring fair compensation for hours worked beyond the standard 40-hour workweek.

If you haven’t designated employees as “exempt” from OT to comply with the FLSA regulations, you may do so quite efficiently in HRP.  The default is “No” indicating “non-exempt”. You need to only select the positions that are “exempt” to turn the “toggle” to “Yes” (i.e., green) to update the position and track your records accordingly. This designation flows to payroll (both GP & BC) for employees allocated to the respective positions updated.

Follow the steps below to designate your employees’ OT status.

Click the Company Tile and select “Position” from the Company Setup dropdown menu

Double click the row of the exempt position type on the dashboard to view the record

When the window opens scroll to” Additional Info” and look for the “Other” menu. Toggle OT Exempt to ‘Yes’ and save changes.

Since the default for positions is non-exempt (that is, the toggle is “No”), then you should only need to open the Exempt positions to click the toggle and turn “OT Exempt” to green and save changes.

TIP: If you are making changes to multiple Position Types, you can select Save & Next Record to quickly update other Position Types