DOL FLSA OT SOS ASAP! | Netchex Payroll Software
(Department of Labor, Fair Labor Standards Act Overtime Help – FAST)
September 27, 2016

The new FLSA ruling will shape the status of employment for more than 4 million individuals throughout the U.S. How many of these people do you employ?

To give you an idea as to how many people in your area will be affected by the Department of Labor’s new overtime laws, we’ve provided an estimated breakdown by state in the Gulf south region and surrounding areas.

  • Louisiana – Approximately 61,000 employees
  • Georgia – Approximately 158,000 employees
  • Texas – Approximately 370,000 employees
  • Mississippi – Approximately 40,000 employees
  • Florida – Approximately 331,000 employees
  • Alabama – Approximately 60,000 employees

By now you’ve heard a hundred times that the December 1st deadline is a mere few weeks away, which means compliance is imminent or steep penalties may be in your future. Don’t worry, we’re not here to lecture you on the obvious, we’re here to help.

Take Immediate Action

Whether you have started transitioning to meet the new FLSA OT rule, or your company has just now started to consider the implications of the new overtime threshold, Netchex can ease you in to compliance before December rolls around. Here are a few suggestions:

1. Determine who in your organization will now be eligible for overtime benefits.
2. Consider how this change will affect your bottom line:

a. Will anticipated revenue cover the increase in overtime expenditures?
b. Can raising salaries offset the cost of additional overtime and save money?
c. How do commissions and bonuses apply to the new income threshold?

3. Plan effective communication to employees who are now non-exempt and may feel negatively about this status change as though it is performance-based rather than logistical.
4. Schedule necessary trainings around time tracking and management to ensure all employees and managers understand how to they should be logging their hours moving forward.
5. Ensure that payroll processing is aligned for employees who are now non-exempt under the new rule that puts the minimum salary at $47,476.

For companies that rely on hourly employees, the additional overtime charges could add up significantly. Consider hiring extra part-time employees to take on shifts rather than rack up extra hours that could cost you time and a half or double the wages.

A Long Term Solution

While you may be in good shape by December 1st and ready to implement new processes this year, don’t get too comfortable. The DOL has also proposed augmenting this law every three years to sustain cost of living. And should this happen, you may want to consider a long term solution that can adapt to new overtime thresholds as they are announced.

Netchex time & attendance, payroll, and HR services are ideal for this type of situation. We create flexible solutions for the HCM industry with powerful capabilities, yet so user-friendly that each department can benefit from features. Our solutions are designed around today’s mobile workforce. With complete connectivity and a range of point and click, and customizable attributes that automate services, Netchex makes company’s lives easier.

Over the next few weeks you should be preparing your organization to comply with the new overtime rules. We invite you to download our free FLSA Compliance Kit featuring tips and resources to help you get situated before the December 1st deadline. And, to learn more about how Netchex technology and personal support can make this and subsequent legislation easier to adapt to, contact us. We’re here to help.

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