Scheduling Software Could Help Your Business with the New Overtime Rule
One of the big changes coming to the world of working and business hits on December 1, 2016. That’s when the Department of Labor’s new overtime rule kicks in.
For business owners who might need to start paying attention to how many extra hours their salaried workers are spending, scheduling software could be a solution that can help them easily track how their workers are proceeding.
What is the New Overtime Rule?
Basically, the new overtime rule raises the threshold at which white-collar workers are exempt from overtime pay. In the past, any salaried employee making at least $23,660 was exempt from being paid overtime. The new overtime rule changes that. Now, the exemption threshold has been raised to $47,476.
The change in the rule is meant, in part, to address the fact that even though worker productivity has increased since the 1970s, wages have been stagnating. The new overtime rule, which takes effect at the beginning of December 2016, is designed to help millions of salaried white-collar workers take advantage of overtime when they work more than 40 hours per week.
Could Scheduling Software Help You Comply with the Rule?
On top of updating the threshold for overtime pay exemption, there are also new regulations being introduced in different cities and states that have to do with scheduling. Some of these regulations include letting workers know their schedules in advance — and requiring employers to pay extra for last-minute changes.
With these new regulations, scheduling software like Due can make a lot of sense. It’s possible for you to use time tracking software to see which hours your employees are working, and stay on top of the situation. This is especially important if you are a business with salaried employees that sometimes work more than 40 hours per week. You will need to know how much extra they are working so you can pay them properly.
Hourly workers already receive overtime pay for the most part, so the new overtime rule might not impact them as much. Salaried workers, though, are likely to see a difference.
Scheduling software can also help you as you create schedules for your employees. If you live in a city that requires you to share schedules in advance, these tools can help you create and share a schedule quickly and easily. Without these scheduling apps, you could easily run into problems. It makes sense to use the tools at your disposal to make sure you are in compliance with the latest regulations.
Can you Get Around the New Overtime Rule?
There are some ways that some employers are likely to try to get around the rule. One way is to just raise salaries to the threshold. This might not be practical if your workers are $10,000 or $15,000 below the threshold right now. However, if it is only a matter of a couple thousand dollars a year, it could be a winning situation. Your employee gets a raise, and you don’t have to worry about overtime pay.
As you consider new regulations, pay attention to the tools you have to use. If you can use scheduling software or other apps to help smooth the process, it can make a huge difference.