How to Control Costs with New Overtime Regulations

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New overtime regulations-change exemption amountThe Federal Department of Labor (DOL) has finalized changes to the overtime regulations, extending the salary requirement required for exemption from overtime to $47,476. The final rule is scheduled to take effect on December 1, 2016, so businesses have just a few months to prepare for these changes. Technology can support your efforts to manage these new rules and control costs. Put the technology you need into place today so you are ready when the overtime regulations become effective later this year.

As discussed in “New overtime regulations require $47,476 salary for exemption,” posted by Susan Prince on, employees earning more than $455 per week, or $23,660 annually, but less than $913 per week, will soon be reclassified as nonexempt under the new overtime rules legislation. Those employees that fall within these salary levels will be eligible for overtime for the time that they work, over 40 hours, in a week.

These changes can put employers who are attempting to control overtime costs while ensuring work is getting completed in a challenging position. It may be advantageous to increase the salaries for certain employees in order to avoid paying overtime costs. Another strategy to consider is reducing the salary of newly nonexempt employees so that when you pay overtime, total compensation is similar to the salary they were paid when exempt. Controlling overtime hours by hiring part-time employees or preventing employees from working unauthorized overtime are other options for managing overtime costs. However, you can improve the effectiveness of these new policies and procedures by putting the right technology into place.

Improve Effectiveness of Overtime Policies with the Right Technology

Many enterprise resource planning (ERP) solutions, including Microsoft Dynamics® GP,  offer powerful payroll and human resources enhancements.  However, in some cases, these features aren’t enough to address changes in regulatory requirements. An affordable and easy-to-use add-on solution, like Overtime Hours Rules, can make it easier to configure, manage and analyze overtime. You set up the specific rules for employees, departments or specific positions, then manage them on a daily or weekly basis, by pay period, or a combination of these methods. Not only will you save time with managing overtime, you can improve compliance with this pending legislation.

Don’t wait until the new overtime rules go into effect. Deploy the technology you need to manage these upcoming changes today. Contact Integrity Data for more information about Overtime Hours Rules and other payroll enhancements.

By Integrity Data, Illinois Microsoft Dynamics GP ISV developing enhancements for Payroll and HR

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