Dive Brief:
- The Department of Labor's proposed increase in the minimum salary requirement for the "white-collar" employee overtime exemption is right around the corner, as the DOL has completed collecting public comments as of Sept. 4. Observers expect the changes to take place sometime in early 2016.
- According to results from the 2015 "Getting Paid In America" survey conducted by the American Payroll Association, however, many employers are ill-prepared to meet those impending requirements.
- Of the 34,800 workers responding to the survey, nearly 33% report they are not required to input their hours worked at their jobs.
Dive Insight:
Mike Trabold, Director of Compliance Risk at Paychex, Inc., says he strongly believes there will be a major shift in these numbers very soon, as businesses across the board may find themselves more vulnerable to an audit and subject to sizable penalties for not accurately tracking and accurately paying nonexempt employees for all hours worked.
As reported, the DOL has proposed changes to the executive, administrative and professional (EAP) exemptions under the Fair Labor Standards Act that would make nearly 5 million additional employees eligible for overtime pay by doubling the minimum salary required for exemption from overtime.
"Business owners relying on paper time sheets, which are open to human error, and those not requiring employees to track hours at all should be thinking differently before the final rule is published and becomes effective," Trabold said. "Businesses relying on technology to track employee time and attendance will likely become the new norm, due in large part to increased government regulation."
