The U.S. Department of Labor (DOL) recently published significant changes to the overtime rules which become effective in less than a month. Businesses are working hard to reclassify exempt and nonexempt workers, calculate the cost behind those changes and put additional procedures or technology in place to capture necessary data. Be prepared for these new FLSA Overtime Rules changes, today and into the future, by deploying a strong business management solution.
December 1, 2016 is when the FLSA Overtime Rules take effect and, as noted in “Preparing for the 2016 Changes to Overtime Regulations,” posted by Amy Wisner on business2community.com, employees that are currently exempt will soon become eligible for overtime pay. Under the old overtime rule, the full-time, salaried workers earning approximately $24,000 per year, or $455 per week, were not eligible for FLSA overtime protections. Under the new rule, workers who do not earn about $47,500 per year, or $914 per week, must be paid overtime even if they are classified as a manager or professional. This is a significant jump in salary threshold and it’s expected to increase every three years.
Experts suggest that employers prepare for these changes by broadcasting anticipated changes with all employees and discuss the strategies you may use as these changes take place. Discuss how and why an employee status may be changed from exempt to non-exempt. Secondly, maintain accurate records for all hours worked by employees whose status may change from exempt to non-exempt. You must also include work completed off-site or during off-hours.
Manage Overtime with Overtime Hours Rules
As you sort out the changing status of exempt and non-exempt employees, it’s also important to gain control over overtime hours. Manage them accurately and efficiently with Overtime Hours Rules, an easy Microsoft Dynamics® GP Payroll add-on. You establish overtime rules based on employee, department, position or other requirements that may be unique to certain states or companies. These rules can be managed on a daily or weekly basis, pay period, or a combination of settings. Establish which rules take a priority and which pay codes or hours are subject to these rules. Overtime Hours Rules then automatically calculates overtime hours with each payroll process, without any additional steps from your payroll team. This solution also supports compliance with FLSA and state requirements, such as the California 7th day overtime requirements.
Be prepared to navigate the changes in the FLSA Overtime Rules and deploy Overtime Hours Rules to streamline overtime management. Contact Integrity Data for more information about managing overtime and improving other common payroll challenges with modern payroll solutions.
By Integrity Data, a Microsoft Dynamics GP ISV out of Illinois