Changes to wage and labor laws mean changes to your payroll processing. If you’re not using a good system to track employee pay rates and easily modify them based on new regulations, you could be in for a lot of extra work to stay compliant. Whether you need to follow the new FLSA overtime rule or you have state laws that supersede the federal law, like in New York, our HCM partner iSolved offers this perspective on how your technology can make overtime pay compliance easier.
How your HCM solution can make FLSA overtime pay compliance easier
Effective Jan. 1, 2020, employers across the nation will ring in the new year with evolving employee salaries and job responsibilities – potentially.
The U.S. Department of Labor updated the Fair Labor Standards Act salary thresholds for administrative and professional employees (white-collar jobs), known as the “overtime rule,” the first change in 16 years.
The result? Increase annual salaries for workers currently earning less than $35,568 or pay them overtime for any hours worked beyond 40 hours in a workweek.
HR managers, payroll administrators and budget-conscious directors employed at companies who fall under these revised guidelines now have their work cut out for them: updating their companies’ internal systems and pay scales.
Time and attendance tracking
An HCM platform like iSolved tracks all data points related to employee time and attendance, even telecommuters.
You gain visibility into:
- When someone clocks in and out.
- When breaks or lunches are taken.
- Timesheet errors.
- Comp time calculations.
- Shift-building and resource planning.
As you can imagine, the level of granularity listed above provides a one-stop command center for managers and supervisors. They can drill down into any type of employee indicator they need, and they can also receive automated reports that compile all this information into action items.
These reports can generate comprehensive lists of every employee who may be impacted by the FLSA change and their historical hours and earnings.
Rather than having to track down this information yourself, it’s provided to you in a configurable, visualized dashboard.
As you dive into the full scope of how your organization may be affected by the FLSA change, you’ll need a mechanism for estimating the financial impact underlying any sort of transformation your business may undergo.
An HCM system can help forecast shifting business expenses, empowering you to make proactive decisions on whether:
- An employee will need a raise.
- An employee can work fewer hours.
- An employee should have duties revised.
Doing this at scale, across every employee, allows you to see which moves make the most financial sense for your company.
To appropriately broadcast any company changes to your organization, an HCM solution can simplify comms, publicize necessary updates and filter conversations and questions to the right channels.
With the overtime pay rule change projected to impact 1.3 million workers, make your life easier with modern HCM software like iSolved, which has built-in reporting that will give you insights into which of your employees may be impacted by the new overtime rule.
Request a free demo today to see iSolved in action and learn more about how it will help your business.