iSolved Helps Employers Manage New Overtime Rules
Revised standards will increase the number of employees eligible for overtime, making a time tracking system more important than ever.
CHARLOTTE, N.C., May 25, 2016 /PRNewswire/ -- On May 18, the White House and Department of Labor announced dramatic changes to employee overtime regulations originally set under the Fair Labor Standards Act (FLSA). Scheduled to take effect on December 1, 2016, the new rules make it likely that more employees will be eligible for overtime. It will be vital for employers to prepare for this change prior to the effective date.
Under the new provisions, employees earning a salary of less than $47,476 ($913 a week) will qualify for overtime pay when they work more than 40 hours per week. That's about twice the current standard of $23,660 ($455 a week).
When computing whether salaried workers' income qualifies them for overtime, employers may include bonuses and commissions up to 10% of the threshold. The revision also increases the minimum salary for highly compensated employees to $134,004, and the FLSA will require companies to put into place a mechanism that automatically updates compensation levels for all exempt employees every three years.
Though critics question the consequences of these changes, and Congress may end up blocking the new rules, employers should prepare accordingly to comply. Employers may seek technology to help minimize the impact. The iSolved HCM platform includes time tracking and overtime reporting that will efficiently manage the challenges imposed by the new rules.
About iSolved
iSolved is a comprehensive human capital management solution for payroll, time, benefits and HR that manages an employer's most important asset — their people. The cloud-based platform is delivered through elite, regional payroll providers who provide best-in-class service to their clients. This unique approach gives small-to-midsize employers access to a cutting-edge HCM solution, while retaining the local service relationship they prefer. For more information, visit www.isolvedhcm.com.
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SOURCE iSolved
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