With the upcoming unknown that is the Department of Labor (DOL) Overtime Exemption update, it has become increasingly important to have an effective timekeeping system in place. If you are not familiar with the DOL Overtime Rule, it was scheduled to go into effect on December 1, 2016, but a federal judge has ruled against the regulation until further notice. At this point, we know that the overtime exemption rule has been blocked temporarily, but whether or not it will go into effect later, or will be modified, is anyone’s guess. Due to the unknown, it is best to be prepared for the changes to stay compliant. The best way to prepare yourself and your company is to track employee hours and pay based on hours worked. If you’re thinking about tracking employee hours in order to manually calculate paychecks, you’ll want to be mindful of a few things first.
Next month is the month many employers are, and have been, dreading for quite some time now. On December 1, 2016, the overtime exemption rules will be updated to reflect a hefty pay increase for those workers who are exempt. Not sure what qualifies as an exempt employee? According to the American Payroll Association, an exempt employee is one who does not need to be paid the minimum wage or overtime pay; with this, the employer does not need to record details involving their work (such as hours worked).
As you have probably heard, the Department of Labor (DOL) has recently passed a law that will affect overtime exemptions for salaried employees all across the country. Most of the articles you’ll find related to the subject are pretty difficult to understand - full of jargon you need a political science degree to understand and typically about 500 words longer than necessary. My goal in this blog is to simplify what the law means, explain how it will effect your company, and clarify what changes you will need to implement in order to stay in compliance with the new rules.