Businesses Need to Focus on Overtime Rule Legislation

Visit Website View Our Posts

New overtime laws would change the exempt threshold for salaried employees.

Human resources departments have been spending time getting ready for Affordable Care Act (ACA) compliance and must now also turn their attention to another important pending legislation – overtime rules. The US Department of Labor (DOL) released new rules last year that would impact provisions of the Fair Labor Standards Act (FLSA) and extend eligibility of employees that work over 40 hours per week. Final rules could be published in July 2016, which is why human resources managers need to get positioned to manage these changes now.

Which employees will the Overtime Rule affect?

As indicated in “Overtime Rule Advances Toward Publication,” posted by Beth Mirza on, the DOL sent final changes for determining which workers are eligible for overtime pay to the Office of Management and Budget (OMB). The anticipated changes to the FLSA could affect millions of employees that are currently exempt from receiving overtime pay. The proposed salary threshold for exempt employees could be changed to $50,440, which is a significant increase from the current threshold of $23,660 annually.

How long do you have to prepare for the Overtime Rule?

The proposed overtime rule is expected to be published by July 2016 and could take effect on Labor Day, September 5, 2016. Should the rule be posted on the Friday before Labor Day, it would take effect on November 1, 2016, just before Election Day. If the rule is released as proposed, businesses need to be prepared to manage overtime for a number of employees that may soon fall under this rule. Keeping track of overtime using manual processes and transcribing data from timesheets into payroll software is risky. Mistakes can lead to problems with regulatory agencies and with employees.

Is there help available?

Yes. The Overtime Hours Rules GP Payroll add-on solution by Integrity Data can streamline management of overtime and support compliance with the current and proposed FLSA rules. This solution can also support state requirements for overtime, including the California 7th day overtime requirement. You can establish rules unique to each employee, department, position, or other variables that could be different in other states or companies. Rules can be managed by day, week, or pay period and prioritized to the pay codes or hours subject to the overtime rules.

Using the right business management solution can save valuable time and reduce the chance for mistakes when calculating overtime and processing accurate payroll. Contact Integrity Data for additional information about Overtime Hours Rules and the other innovative tools that can streamline payroll and benefit management activities.

With 20 years of GP Payroll experience and many easy add-on products to make GP Payroll great, Integrity Data is qualified and ready to assist you in finding answers to any Payroll problem.

by Integrity Data

Leave a Comment

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Show Buttons
Hide Buttons