How Will the FLSA Changes Affect Your Business?
The Fair Labor Standards Act (FLSA) changes will reclassify a portion of the workforce to become eligible for overtime pay and the Department of Labor expects 4 million employees to be impacted. Furthermore, the previous exemption limit was $23,600 annually, but the current exemption limit is $47, 476 annually.
According to the Department of Labor:
- FLSA suits increased 400% in the last 15 years.
- Violations were found in 79% of agency-initiated investigated.
Common FLSA Questions:
- How can we ensure we are paying people for the hours that they work?
- Is our scheduling optimized?
- Will we require approvals for overtime?
- How will we track time so we know when to pay employees overtime?
- Do we need to adjust our hiring strategy?
- Do we need to update our timekeeping and scheduling systems?
- Do we have the tools to manage the new regulations?
For those that are not sure how to tackle the impending changes, APS is here to help.
What APS Can Do To Help You With FLSA
Here are 4 steps that you can take:
- Take advantage of APS’ various resources and free information, such as our blogs, FLSA checklist, and white-papers.
- APS can run an audit to see how businesses are paying employees for their salary status, even dealing with the exempt and nonexempt.
- Once we establish that, companies can hire an HR consultant to make sure employees’ job duties classify them as an exempt employee. Companies could also, or instead, hire a lawyer to make sure companies are compliant with the ruling.
- Our software systems can be applied to help with HR, timekeeping & attendance, payroll, and other essential factors with FLSA.
APS Software’s Role In Maintaining FLSA Compliance:
- Flexible reporting makes an initial or ongoing Quarterly FLSA Audit very simple – the platform is Excel based and user-friendly.
- Paperless HR means that all employees with job description and/or classification changes can be assigned paperwork to sign off on electronically, which creates an audit trail.
- Job Descriptions can be tied to an Open Job requisition.
- APS software can generate an FLSA Noncompliance Error Message if an employee is entered as exempt with a salary less than $47,476. Annual increases can be programmed to take effect on the proper date.