American Business Unprepared for DOL Overtime Expansion

SAN ANTONIO, Sept. 29, 2015 /PRNewswire/ -- Businesses may be unprepared for the Department of Labor's proposed increase in the minimum salary requirement for the "white-collar" employee overtime exemption, according to results from the 2015 "Getting Paid In America" survey conducted by the American Payroll Association.  Of the 34,800 workers responding to the survey, nearly 33 percent are not required to input their hours worked at their jobs.

"I strongly believe we'll see a major shift in these numbers. Businesses across the board may find themselves more vulnerable to an audit and subject to sizable penalties for not accurately tracking and accurately paying nonexempt employees for all hours worked," said Mike Trabold, Director of Compliance Risk at Paychex, Inc.

The annual survey asked respondents "How do you input the hours you work at your place of employment?" Nearly 33 percent of respondents indicated they weren't required to input any of their hours worked, while 22 percent indicated they input their work hours on a time sheet. The Department of Labor has proposed changes to the executive, administrative, and professional (EAP) exemptions under the Fair Labor Standards Act that would make nearly 5 million additional employees eligible for overtime pay by doubling the minimum salary required for exemption from overtime, from $455 a week ($23,660 per year) to $970 per week ($50,440 per year). 

"Business owners relying on paper time sheets that are open to human error and those not requiring employees to track hours at all should be thinking differently before the final rule is published and becomes effective. Businesses relying on technology to track employee time and attendance will likely become the new norm, due in large part to increased government regulation," said Trabold.

Over 23 percent of the participants responded that they input their hours on a desktop or laptop computer. Nearly 10 percent indicated that they input hours via a badge or card reader, while nearly 12 percent were split between various other electronic methods.

The "Getting Paid In America" survey was held in conjunction with APA's annual public awareness campaign, National Payroll Week (NPW). Over 34,800 employees responded to the survey, providing insight into how workers are paid in America. For complete results, visit www.nationalpayrollweek.com.

The APA is the nation's leader in payroll education, publications, and training. Visit APA online at www.americanpayroll.org.

SOURCE American Payroll Association

Related Links

http://www.americanpayroll.org