65 Percent of Businesses Could Be Affected by DOL Overtime Changes
HR Tech Company Paycor Launching New Tools to Help Companies Prepare
February 26, 2016_
Upcoming FLSA overtime changes from the U.S. Department of Labor (DOL) could affect 65 percent of businesses, according to data from Paycor, which serves 30,000 small and midsized businesses with intuitive, cloud-based onboarding, applicant tracking, HR, payroll and timekeeping software. Paycor today announced two new reporting tools to help companies prepare for the upcoming changes.
Under the new regulations in the DOL’s Fair Labor Standards Act, the standard salary threshold for overtime exemptions will more than double–from $23,600 per year to $50,440 per year. According to the DOL, this change will mean that approximately 5 million more workers would be eligible for overtime pay within the first year.
“Although the final regulations have not yet been issued, employers need to take action now to prepare for these changes, as they are expected to go into effect in mid- to late 2016,” said Karen Crone, chief human resources officer. “Employers need to understand whether they are affected by the impending rule changes, and if so, what steps they need to take to ensure they are compensating their employees fairly while controlling the cost implications for their business.”
Based on its expertise in payroll and timekeeping, Paycor developed two new tools to respond to the needs of its customers.
The Department of Labor Employee Cost Neutral Report provides a list of adjusted hourly rates for salaried employees that can help keep employers cost neutral based on the proposed DOL overtime updates.
The Department of Labor Employees Affected Report provides a list of active employees that may be affected by the proposed DOL overtime updates.
These new reports are in addition to other Paycor solutions, including an advanced time tracking platform that can help companies get ready for the DOL’s changes. One of the most critical components of complying with the changes is implementing a system that accurately tracks the number of hours that exempt and nonexempt employees work each week, including any overtime.
Without proper preparation, the proposed update could cost employers thousands in higher wages or employee lawsuits, since any business that employs exempt workers with salaries under $50,440 would be directly affected.
“Employers could lose tens of thousands of hours in productivity, or pay employees tens of thousands dollars more than expected if they don’t accurately capture the hours employees work before the regulations take effect and make appropriate changes,” said Tim Ruge, manager of product programs, including the new tools.
Paycor’s Perform Time solution helps organizations keep track of the hours that exempt and nonexempt employees work to ensure they are paid properly and that the business is protected in the event of an audit. By integrating its solution into the same database as HR and payroll information, Paycor delivers a unified platform that improves accuracy and increases efficiency, providing a tremendous business advantage for employers. In addition, the company’s Reporting and Analytics solution quickly summarizes the data employers need to determine the best course of action, including accurately calculating the hourly rate for employees based on the hours they are expected to work.
To further assist employers with understanding how to effectively prepare for the upcoming changes, Paycor released a 7 Step Guide to Mastering Department of Labor Proposed Overtime Updates. By implementing Paycor’s solutions and following the advice shared in the guide, organizations can position themselves to respond quickly to the changing regulations and remain in compliance with the Department of Labor’s Fair Labor Standards Act.
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