Lack of Logged Hours Poses Problems for New Overtime Rules
The deadline for the Department of Labor’s overtime exemption rule is coming up quickly. There is still a question as to whether or not companies and their HR departments will be ready for the change.
In a recent survey of 27,0000 employees, 36% of those said that they do not input the number of hours that they work. That picture may be even more sobering if we are to go by a survey recently conducted by the American Payroll Association which indicates that the number of employers who don’t require their employees to log their hours has even increased 3% since 2015.
Even though some workers are expected to use a time card or fill out a time sheet to track their time, the new rule is also pushing employers to go to more technology-driven ways in order to track workers’ time on the job so that they can more closely keep track of hours worked.
Payroll experts say that an estimated 40% of workers who are employed full time are expected to become eligible for overtime pay when the minimum salary required for overtime exemption increases from $23,660 to $47,476 annually. That means any employees who are earning below the new salary threshold would become eligible to receive payment for any and all hours over their 40 hour work week.
Even though the rule has its opponents and is currently being litigated, smart employers and HR professionals have begun preparing their companies and workforce in order to be compliant for the deadline on December 1st.
The upcoming overtime law will change how many companies compensate their employees for the jobs they perform. It’s important for employers and HR professionals to know what the requirements of the law are in order to stay compliant and within the law in order to avoid facing penalties for non-compliance.
At Einstein HR, we know employment law and we can help your organization get ready for the upcoming changes because we have made it our business to know the requirements that can affect you and your company.
EinsteinHR will be there to help find and fulfill the human resource needs of your company. Contact us today at 770-962-1700 and find out how we can help.