Do the FLSA changes matter? According the US DOL Wage & Hourly Division in 2015 over 21,000 cases were reviewed resulting in over $175 million in additional wages due employees. The FLSA changes in the overtime requirements will affect approximately 4.2 million workers that will either become eligible for overtime protection or have their salary increased to comply with new overtime guidelines. Workers may experience other changes in addition the overtime requirements. Businesses will likely be more restrictive in monitoring actual hours worked showing less flexibility in workers’ schedules. In addition many companies are expected to reclassify employees’ status from Exempt to Non-Exempt. Companies must prepare for the impact that …show more content…
o Realign work schedules and ensure that employees do not work more than 40-hours per week. This solution may require hiring of additional staff to meet deadlines and work requirements. o Reduce employees wages ensuring an hourly rate is consistent with established budget given overtime hours worked. (Certainly not the recommended solution, but in some instances may be necessary for smaller businesses to maintain strict budget guidelines). • Educate management on changes and communicate changes to employees ensuring that employees know how the changes will affect them personally. • Implement changes by ensuring that the tools are in place to ensure accurate tracking of hours worked. Update current policies to clearly communicate overtime practices and policies with employees. Burden of responsibility for accurate tracking of hours worked fall on the Employer. Recognizing that the FLSA overtime changes will obviously put additional burdens on smaller to medium sized company, organizations must avoid the tendency to take short-cuts or action to avoid compliance. To avoid potential liability companies …show more content…
Federal law requires companies to time tracking records for 3 years. Some states and local law may required longer periods. Make time tracking software available to individuals that work remotely, have alternative work schedule or are telecommuters. Are there exemptions from the new overtime regulations? Unlike many other labor laws that exempt employers with smaller work forces, the Overtime change is not dependent on company size. Clear exemptions to the new overtime rules are those considered “Learned Professionals” which are professionals requiring advance training such as Teachers, Lawyers, Doctors, Creative Professionals, as well as Outside Sales. According to the DOL Small Entity Compliance Guidelines, under the overtime reform, employers can use nondiscretionary bonuses and incentive payments (including commissions) to satisfy up to 10 percent of the standard salary level amount. Such payments must be paid on a quarterly or more frequent basis to count towards the salary level test. If an employee does not earn enough of a nondiscretionary bonus or incentive payment in a given quarter to meet the standard salary level, an employer may make a “catch-up” payment no later than the next pay period after the end of the quarter. Any such “catch-up” payment counts only toward the prior quarter’s
Overtime a body of law or legislation has developed governing employer/employee relations and right of employees and employers in the workplace subsequently amended by the employment relations Acts of 1999 and 2003, provides arrange of contractual rights for employees including entitlement to an itemised pay statement.
* Finally , the time zones problem . 40% of the companie’s clients are located on a different time zone so , the customer service is not available at certain time . For this , we think that the best solution is to change the employees working hours. The employee that will be in charge of Professional users and Large corporate accounts will be working from 10:00 to 9:00 , on this way , the large corporate’s accounts needs will be covered . The other 9 employees will continue with a normal schedule from 7:00 to 6:00. Also , the company needs
Give contests to the workers between each other and give points to the workers for whatever good things they have done and also must deduct points when they do not do well suppose for example when a worker keep absenting themselves must deduct points for every absence so the staffs will turn up every day and they will be motivated to turn up for work for everyday and put in such a way that that the staff who earns the most points will get rewarded with the most bonus and that will motivate the staffs to do good
The Fair Labor Standards Act has been amended many times and is virtually an ever-changing law, however, it does not cover all employees. There are several classes of “exempt” employees, including salaried employees in the executive/managerial, administrative, and professional areas. Outside salespeople are also considered exempt. One of the issues facing companies today is knowing which employees are exempt and which are non-exempt. There are tests to determine if an employee is exempt. In 2004 the tests changed to a standard test, which is whether or not the employee’s salary is $455/week or greater and the duties test, which allows for exempt status if more than 50% of the work performed by an individual is “exempt work.” (Pass and Broadwater) Exempt employees do not receive overtime pay, which can be a substantial cost savings to a company. My previous employer required that an exempt manager close the center each night even though we had non-exempt team leads who acted as managers in most capacities. The reason was to avoid overtime costs.
Make management formally recognize and accept responsibility not only for the financials, but also for the internal control system.
At the beginning of this year the company implemented a new work shift policy to keep up with the growth of the organization. The policy requires that employee’s in the production group work 12 hour shifts with 4 days on then 4 days off in a rotating manner. This means that at times some employee’s will be working on a
There are five areas an employer can control to ensure compliance with The FLSA to avoid claims. Firstly, it is utterly important to educate the managers on FLSA. Knowledge is power and therefore would be advantageous to managers. This also includes facilitating managers in understanding the importance of accurate timekeeping, record retention and employee classification (SHRM, 2012). This will make managers aware of their part in ensuring employer compliance. On a more specific level, employee classification is vital. Compliance evolves around proper classification of exempt and nonexempt employees based on FLSA provisions. Since there is no cut and dry rule on an employee who is covered by FLSA. It is also important to maintain updated employee records (SHRM, 2012). Information such as identity and work hours and wage information are not only mandated by FLSA but will also keep the employer in compliance. And lastly, as some major check points, double check that non-exempt employees are being compensated for all hours worked. Also ensure that any overtime is paid at one and one half times their base salary. Verify that employees are performing their jobs as assigned and working the hours designated by their supervisor.
What effect will the new FLSA laws have on American businesses? “If you are an American business that has two employees and is considered an enterprise, if you are a business or organization that has an annual volume dollar of sales or receipts of $500,000, if you are a hospital or business providing medical services or nursing care for residents private or public, if you are a private, public, for profit, or nonprofit school, if you are a state or federal agency, you are required to pay overtime to employees whose yearly wage is less than $47,476 a year.”(Adecco
The act created the Wage and Hour Division (WHD) within the Department of Labor to enforce the act. The FLSA established a federal minimum wage of $0.25 an hour. The FLSA also requires that employees receive one and a half times their hourly wage for every hour worked beyond a standard workweek. The FLSA applies to employers whose annual sales are greater than $500,000 or engage in interstate commerce. If the employer does not meet the $500,000 threshold, the employee may still be covered by the FLSA if they engaged in interstate commerce. The FLSA allows for certain employees to be paid a subminimum wage. For example, tipped employees may be paid less than the basic minimum wage, but their cash wage plus tips must at least equal the basic minimum wage. Other types of employees who may be paid a subminimum wage include: certain disabled workers, new hires under the age of 20, and student learners (Minimum Wage Overview: Provisions Of The Fair Labor Standards Act. (Cover story), 2013). Employees whose jobs are governed by the FLSA are classified as either “exempt” or “nonexempt”. Employees who are exempt are not entitled to overtime pay. To be classified as exempt, employees must earn a minimum of $455 per week and meet certain duties tests for their job type. Executive, Administrative, and Professional employees are exempt provided their jobs meet the standards. Outside salespersons and
However, the Director of Nursing and Management are exempt, but the higher salaries they paid to management will still probably be much higher than their hourly counterpart. Because of the enormous earning of upper management Companies are justified in not paying them for overtime
Meeting with staff, providing the opportunity to discuss concerns, ascertain motivation and build relationships between management and workers. Collect and analyse performance figures and observe trends, (for example absence levels, retention, production or customer service). Use staff satisfaction surveys to determine the mood of employees. Promptly analyse responses to identify areas requiring action.
With this overtime occuring often, it is impacting the quality of life of this particular employee which must be examined by upper management and a decision must be made to improve the process in a more efficient manner in order to reduce the overtime days.
* Nearly 80% of workers say they would like to have more flexible work options and would use them if there were no negative consequences at work
I feel that if you tell an employee that they are responsible for completing so many hours in a week that it would make it easier for instance if I say I need you to work 32 hours this week if you can’t work on Friday Saturday or on Sunday then that means you need to work those hours Monday thru Thursday. If I know you are unable to come into the office to work but I can have you remotely or sign in from home then this can benefit you because you don’t have to make the travel but I still can get you to do the work