FLSA White Collar Exemption Ruling, Preparing For Compliance

With less than a month to go before the new FLSA regulations are set to take effect, here’s a refresher of the upcoming changes. The final white-collar exemption rules are effective December 1, 2016 and includes:

  • New salary level requirement of $913 weekly or $47,476 annually.
  • Automatic adjustments every 3 years based on the 40th percentile of full-time salaried workers in the lowest-wage
  • Highly Compensated Employee’s must be paid at $134,004
  • Automatic adjustments every three years based on the 90th percentile of full-time salaried workers nationally
  • Up to 10% of standard salary level can come from non-discretionary bonuses, incentive payments, and commissions, if paid at least quarterly

Use your Time and Attendance application to analyze employee time tracking data

What should you analyze?

  • Review past hours worked for your employees
  • If an impacted employee has been tracking his or her time, examine the total hours and overtime hours
  • If impacted employees are not tracking his or her time, view overtime trends of your workforce to help plan for the changes

How to be proactive

Even though exempt employees are not required to track time it can be a best practice to start now to ensure your company is prepared. Time entry punches offer accurate and detail time reporting measures that come in a variety of options, like web clocks or hardware clocks. Tracking time punches can also ensure accuracy at the employee and manager level. Another method to consider is a web-based timesheet to allow employees to enter hours worked per day. Lastly, once a time and attendance system is in place, alerts can be set up to notify supervisors when an employee may approach premium, hour thresholds, early in and out, shorten lunch breaks, or absenteeism.

Take your analysis a step farther with OrgPlus RealTime

flsa-identify-exempt-employees

Using OrgPlus RealTime, you can proactively monitor employees with exempt status and salaries that are near the new salary level requirement of $47,476 annually. Having this information illustrated in an organizational chart can provide a simple visual snapshot and can help with future planning and budgeting.

flsa-time-data-in-orgchart

As you analyze your employee data in a time and attendance system, also consider importing that information into OrgPlus RealTime to easily visualize the employees and departments that may reach their time thresholds.