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Maintaining poster compliance with outsourced payroll

2 Jul

The U.S. Department of Labor requires businesses to display posters on the walls around their offices. These posters convey important information about employee rights in the workplace. Full of image- and text-based information, the DOL posters are varied, and each one is applicable to different types of businesses. An outsourced payroll vendor can inform a company which posters it must display and how to keep them updated based on current regulation changes.

What types of posters might go up at a business?
Almost any federal or state law pertaining to employment has its own poster. Here is a short list of some posters employees may find in their workplaces:

  • Job Safety and Health Protection poster
  • Equal Employment Opportunity – Section 503 of the Rehabilitation Act of 1973 (as amended) poster
  • Fair Labor Standards Act Wage and Hour Division poster
  • Notice to All Employees Working on Federal or Federally Financed Construction Projects Wage and Hour Division poster
  • Office of Labor-Management Standards Executive Order poster

Each of these posters pertains to a very specific collection of businesses and has its own set of rules regarding where the poster can be displayed. For instance, construction companies must post one version of the Wage and Hour Division poster, while small businesses have to post another. Requirements vary depending on the industry, company size and types of employees.

Where can businesses find posters?
As HR360 pointed out, all of the federally mandated posters are available for free on the Department of Labor website. However, each state has its own unique series of guidelines companies have to follow when it comes to posters in the workplace. This is where outsourced human resources systems come in.

Outsourcing payroll improves poster compliance
It's no surprise outsourced HR is there, ready to step in and streamline processes like maintaining compliance when it comes to paychecks, benefits enrollment, tax deductions, hiring and more. But when it comes to posters physically in the workplace, these service providers are also on top of things, keeping businesses up to speed on any changes to poster guidelines or information that employees must be aware of.

For example, as of April, private employers working in the commerce sector have to display the Job Safety and Health Protection poster issued by the U.S. Occupational Safety and Health Administration in a spot where both employees and applicants can clearly see it. Should an original poster not be available, these types of companies would have to print out an 8.5-by-14-inch poster with at least 10 point font for workers to observe and read. HR is already bogged down by daily tasks, managing entire businesses and ensuring workers are meeting their potential. Monitoring updates and deadlines for posters could waste time and money if the posters don't go up in a timely manner.

Having an outsourced HR provider is especially helpful for enterprises with locations in multiple states. Since each state requires unique versions of some posters, a single department may find it difficult to keep track of all the regulatory changes or guidelines for each location.

Failure to comply could result in fines
If the DOL completes an audit of a particular business and finds the company isn't up to date on its mandatory posters, each violation could cost the business a fine or penalty fee. The company could also receive contract sanctions or have to appear in court where civil penalties would be assessed. Some violations have no consequences. 

Outsourcing payroll can not only improve businesses' compliance to specific paycheck deductions and benefits administration, but it can also enhance the daily lives of workers around the country.

Exempt employee status change on the horizon

19 Jun

Coming soon to a workplace near you: changes in overtime pay for employees in a variety of positions. The Obama administration plans to unveil its new regulations for employers paying workers overtime wages. These new guidelines would, among other things, include a new definition for exempt and nonexempt worker classification.

Who is exempt?
Currently, employees are exempt from being paid for working overtime, which means more than 40 hours per week, if they are executives, administrative professionals or workers in the computer, creative arts, science or learning industries, according to the Department of Labor. The position an employee holds in one of these industries determines his or her exact exemption status. In general, however, exempt employees are salaried and make no less than $455 per week, or $23,660 per year.

Nonexempt employee status covers just about every other role in the book. These workers are entitled to one-and-a-half times their regular pay rate if they work more than 40 hours in one week, according to the Fair Labor Standards Act.

What changes are on the horizon?
The Obama Administration is considering increasing the threshold for exempt workers from $23,660 to somewhere between $45,000 and $52,000, according to Politico. If the DOL raises the threshold to $42,000, The Economic Policy Institute estimates an additional 3.5 million workers will be eligible for overtime pay. Should the DOL try to account for inflation and raise the threshold to cover the same percentage of workers as were nonexempt in 1975, the threshold would have to be $69,004, subsequently covering 65 percent of salaried employees in the U.S.

How can human resources prepare for this change?
While no final figure has been reached yet, HR departments across the nation may want to prepare now for future changes. Outsourcing payroll is a positive step in the direction of compliance. Rather than entering salaries and overtime hours and then adjusting overtime wages manually, an outsourced payroll solution automates this process, freeing up HR to focus on other pressing issues. Penalties for failing to comply with any DOL or FLSA stipulations could cost businesses money and their reputations, making it more difficult to recruit and hire top industry talent.

It's imperative HR professionals ensure accuracy when it comes to both salaries and overtime pay, especially if these changes do take place and companies across the U.S. are given a fixed amount of time in which to make their own employee status adjustments. 

Tips for hiring remote workers

19 Jun

Businesses today have the ability to hire people from around the world to contribute expertise and imagination to their operations. One of the most popular trends for employers right now is offering employees the opportunity to work remotely. To effectively hire, manage, and retain remote employees, human resources professionals need to consider the unique challenges presented by this set-up.

ConnectSolutions conducted a survey of professionals across a variety of industries and found 63 percent of remote workers had a more positive attitude. Global Workplace Analytics found remote workers to be more productive, as they weren't interrupted by meetings or visits from co-workers throughout the day. The bottom line is employers and employees enjoy remote capabilities.

How can HR develop successful remote workers?
Any opportunities for professional development presented to internal employees should be extended to remote workers as well. It also takes a keen eye to hire the right people for this job. The Daily Muse stated the key to hiring the right workers for remote offices or off-site work is face-to-face interviews and skills assessments.

Face-to-face interviews
It's imperative that applicants interested in remote positions are self-motivated and productive. Body language and tone of voice can tell an employer a lot about what a person is really like. If the candidate can't come into the headquarter office for an interview, conducting a video interview is a great idea. This allows HR to get a stronger impression of the candidate's personality, values, and goals.

Skills assessment 
Remote workers, if they are hired specifically to work off-site, likely will not receive the same training as internal and local hires. HR managers need to accurately assess new employees' skill sets prior to hiring to ensure these fresh faces will be able to not only handle the work load but improve over time. It's a good idea to hire remote workers with extensive experience and excellent references.

Invest in meaningful technology
Businesses must provide all employees with the appropriate technology to ensure collaboration between internal and remote workers. Cloud-based applications that allow different departments to access the same files and view each others' updates instantly provide the opportunity for efficient and clear collaboration. 

Businesses should also consider investing in HR management software. A robust platform keeps all workers' records, payroll, and personal information organized. This type of software can assist HR when it comes to maintaining compliance with state and federal regulations, many of which may be different for each remote worker, depending on their location. 

Going green and HR’s influence on the environment

22 May

Business leaders may be surprised to hear environmentally friendly practices are excellent employee engagement strategies. Business leaders may be even more surprised to learn human resources professionals can help corporations and their employees become more green. In fact, if there's one department that's well-equipped to head up such an endeavor, it's HR.

American workforce growing more environmentally conscious 
It's important to note employees today, especially millennials, enjoy working for companies invested in social and environmental causes. Switch and Shift compiled research from a variety of sources outlining the goals of millennials today. It found a 23 percent increase in volunteerism among 16- to 24-year-olds between 1989 and 2005. Of those who volunteer, 79 percent are motivated purely by passion to help others. Millennials, more so than any other generation, are faced with the task of preserving the environment for their futures, so green initiatives and matters pertaining to natural surrondings will be of greater importance to them. 

In addition, a survey conducted by the Society for Human Resources Management on HR and environmental sustainability found 49 percent of businesses with green workplace practices claimed these environmentally conscious actions helped them recruit top talent. On top of that, 40 percent believed a green work environment led to greater employee retention.

So, where does HR come into the picture?

HR and going green 
Corporations have enormous influence over decisions and opinions made on a global scale. Business leaders' actions can affect those of other companies, industries, governments and local communities. HR is the only department in a corporation that truly interacts with everyone. Executives, managers, entry-level employees, administrative assistants, mail room employees and more all spend time with HR in some capacity. Working with people at all levels is the key to building a sustainable, green office, and HR is the right team for the job.

Currently, according to the SHRM survey, 68 percent of companies already have implemented environmentally friendly procedures in their offices. These businesses found the green initiatives improved employee morale and loyalty, boosted brand recognition among consumers and yielded more efficient output.

To be effective, HR must help their businesses incorporate green guidelines into employees' daily activities; the environment must become a central focus and consideration on a fundamental level. Formal policies, used by 52 percent of those businesses surveyed, are highly recommended.

Some formal policies HR departments currently use include:

  • Going paperless - EcoSeed stated cloud platforms are excellent tools for businesses looking to go green. Rather than printing multiple copies of a single document, work teams can share items with each other via the cloud, making changes together and avoiding printing at all. In addition, all businesses should offer direct deposit for employees. This eliminates the need for envelopes or printing checks every few weeks.
  • Recycling - Companies should have blue recycling bins next to every printer in an office and under every employee desk if possible. Some businesses take this one step further and add compost bins to office kitchen areas. This decreases the amount of waste produced by the organization as a whole.
  • Offering telecommuting - One growing trend in business operations is telecommuting. SHRM reported companies like Dell, Aetna and Xerox allow certain employees to work from home. In fact, these three corporations were able to save 95,294 metric tons of greenhouse gases in 2014 simply by allowing employees to telecommute. Not only has this move improved Dell, Aetna and Xerox's employee satisfaction ratings, but it's made the hiring and retention processes easier.

One thing HR must remember is to design a reliable method for each policy and measure return on investment. SHRM found in its survey that 47 percent of companies with both green initiatives and ROI measurements saw a positive return, and 46 percent responded it was too early to tell with their current practices. None of the respondents claimed a negative ROI. 

To increase employee engagement, retention and recruitment, HR should look into spearheading environmental policies in their offices. 

E-cigarettes and HR policies

22 May

Human resources professionals have to take the safety and well-being of all employees into account when composing business policies and procedures. Many companies provide health and wellness programs to employees or organize corporate outings that encourage physical activity and good mental health. However, with the emergence of new technologies, HR departments are finding their policies may need revamping.

What are e-cigarettes?
E-cigarettes gained popularity in the U.S. in 2007, and the devices still receive mixed reviews when it comes to risks, side effects and benefits, according to the U.S. Food and Drug Administration. The products, which are battery-operated and require no ignition, allow people to inhale aerosol versions of the addictive chemicals found in real cigarettes. The FDA reported it's unclear what amounts of nicotine and other chemicals are actually inhaled by users and how much is let out into the atmosphere.

Primarily, people began using e-cigarettes to quit smoking real tobacco. The Society for Human Resource Management reported between 2004 and 2011, industries with cigarette smokers varied, though construction, mining and accommodation accounted for 30 percent of all smoking employees in this timeframe. By 2013, about 30 percent of all smokers had tried e-cigarettes. The U.S. Center for Disease Control found between 2010 and 2013, the number of U.S. adults smoking e-cigarettes more than doubled. 

The only e-cigarettes currently officially regulated by the FDA are therapeutic e-cigarettes. The FDA Center for Tobacco Products regulates only real cigarettes, rolling tobacco and smokeless tobacco, though its goal is to soon help regulate electronic versions as well. 

Potentially harmful vapors and the office
When it comes to smoking e-cigarettes in the workplace, it gets a little tricky. Technically, electronic devices are not real cigarettes, but because side effects are unknown, it's best to establish a strict policy on whether e-cigarettes can be used indoors. The National Institute for Occupational Safety and Health recommended completely banning e-cigarettes in the workplace. 

"Employers have invested significant time and resources into developing effective workplace policies that help reduce the use of tobacco among employees and their families," Jerry Noyce, Health Enhancement Research Organization's president and CEO, told SHRM.

Noyce's organization contributed to publishing a paper entitled "Guidance to Employers in Integrating E-Cigarettes/Electronic Nicotine Delivery Systems into Tobacco Worksite Policy" earlier this year. The report concluded businesses should consider e-cigarettes as part of the same category as tobacco products and until further review from the FDA, ban them from indoor use in offices.

However, since many smokers are using the e-cigarettes to quit their smoking habits, it's crucial employers offer electronic users their own designated smoking areas separate from traditional smokers. This is a huge step toward ensuring those employees trying to quit stay on the right path.

In maintaining compliance with the Affordable Care Act, HR departments cannot require smokers to quit. A valid choice would be to incorporate smoking cessation options into current wellness programs or practices. In addition, HR professionals should check their state regulations, as some states already ban e-cigarettes indoors.

Strategic human resources solutions to employee health issues are crucial to maintaining a healthy, productive work environment. 

Stevens v. Rite Aid: A lesson on the ADA

22 May

Recently, a licensed pharmacist named Christopher Stevens was fired by his employer, Rite Aid. The Society for Human Resource Management reported the company claimed Stevens' refusal to perform specific duties  on the job led to his termination. However, the Equal Employment Opportunity Commission found Rite Aid in violation of both the Americans with Disabilities Act and the New York State Human Rights Law. In January, the U.S. District Court for the Northern District of New York awarded Stevens a total of $2.6 million.

Where did Rite Aid go wrong?
Stevens has been working as a pharmacist and pharmacy manager in upstate New York for almost 40 years. In 1977, when Stevens started his career, administering immunizations to customers was not part of the pharmacist's job description. This sat well with Stevens, as he suffers from trypanophobia, or a crippling fear of needles.

Law 360 reported Rite Aid bought Eckerd Pharmacy, where Stevens worked in Utica, New York, in 2007. As flu shots became more popular in recent years, Rite Aid made the decision to offer the immunizations at pharmacies around the country. This meant pharmacists would have to inject customers with immunizations after attending a training program to become certified to do so.

Stevens received an email with the immunization certification information in March 2011, requesting his presence at an upcoming training session. His doctor swiftly provided Rite Aid's human resource department and district managers with documents outlining the pharmacist's trypanophobia. Needles and injections caused Stevens to sweat profusely, grow anxious and experience a sharp decrease in blood pressure. In addition to the doctor's letter, SHRM noted Steven's asked for a reasonable accommodation from Rite Aid, which would have provided him an alternative work environment or task to administering immunizations.

Federal regulation compliance issues 
As outlined in the Americans with Disabilities Act, employers cannot discriminate against workers in the public accommodation sector, among others, due to disabilities. ADA and the EEOC define disabilities as both mental and physical ailments that limit fundamental actions, such as walking, talking or hearing. Disabilities can also include chronic illnesses, either currently present or in remission.

Rather than offering a reasonable accommodation, Rite Aid sent another training session notification to Stevens and asked for clarification on the contents of the doctor's note regarding trypanophobia. The doctor informed Rite Aid having Stevens administer flu shots would be a danger to both patients and the pharmacist himself.

In August 2011, the district pharmacy manager, HR manager and district manager for Rite Aid told Stevens in person he would be fired if he did not complete the training. Stevens was let go five days later.

The EEOC investigation
The EEOC took a look into the situation after Stevens filed a claim. The organization found Rite Aid had in fact discriminated against the pharmacist's disability and fired him unlawfully. The EEOC also found giving customers immunization injections wasn't a vital aspect of Stevens' position with the company, nor does the state of New York require a licensed pharmacist be able to give injections.

The jury awarded a total of $2.6 million to Stevens. Broken down, that amount is comprised of:

  • Back pay: $485,633 for work that could have been completed had Rite Aid allowed Stevens to work
  • Front pay: $1.23 million for employment discrimination
  • Emotional distress damages: $900,000 for causing mental anguish or stress

The jury did not, however, award any punitive damages in the case. According to Legal Match, this is likely due to the fact that Rite Aid broke or altered a contract, an action which does not result in punitive damages. Stevens also suffered no physical harm, which is typically when juries decide to award punitive damages.

What could Rite Aid have done differently?
No company wants a public lawsuit that concludes with a disgruntled, distressed employee and a big ADA compliance failure on record. Businesses want their employees to be happy, successful contributors to the organization. A strategic human resource management system can help large corporations like Rite Aid better handle these tricky scenarios and communicate with workers to understand their unique situations. Employers must be informed of any and all nuances as they apply to the ADA, EEOC and Department of Labor guidelines. These stipulations are hard to keep track of, and without excellent tools to help organize employees and changing job descriptions, businesses could end up paying fines on a regular basis. 

Who should HR report to?

22 May

Human resources professionals are quickly becoming more integral to the way businesses are run. While they have always been important to acquiring and building the talent that puts corporations on the map, it's becoming clearer than ever their roles should be more closely aligned with those in the C-suite. This begs the question: Should HR report to the CEO or the CFO?

Pros of pairing HR and the CEO
The Saratoga Business Journal discussed the role of HR as it applies to the CEO of a business. According to Rose Miller, an HR consultant, there is no clearer correlation between the objectives of the CEO and HR. The two are inextricably linked together in that both wish to drive the business forward. Since the CEO shapes company culture, and the HR department essentially ensures that culture is maintained throughout the office and in every new hire, it makes sense that HR would report directly to the CEO.

In addition, Inc. magazine discussed the notion that the CEO is the only individual in an organization who has direct contact with all people, teams, decisions and aspects of business operations. It figures CEOs would work with the department in the same situation. HR is active on just about every level, from hiring personnel to ensuring performance standards are up to par. Essentially, HR is a direct reflection of the CEO.

Cons of pairing HR and the CEO
However, as nearly anyone who has tried to schedule a call or meeting with a CEO knows, these executives are often spread incredibly thin across a huge variety of projects and obligations. If working with HR to convey expectations and provide solutions to company issues isn't within the CEO's schedule, it's likely these tasks will get pushed to the back burner.

Often, in an attempt to better manage HR, CEOs will outsource the department, Inc. stated. While this is sometimes beneficial, it could distance the human resources professionals from the people they are supposed to be managing, helping and providing information to on a regular basis. This type of CEO-HR relationship wouldn't be conducive to a successful business.

Pros of HR reporting to the CFO  
The potential for a CEO-HR relationship to become strained is why there are advocates for HR reporting to the CFO instead. The roles of the CFO and the HR department both have undergone serious changes in terms of responsibilities, leadership and involvement in key decision-making in the past few decades. This puts them on a similar level in terms of understanding one another.

One reason why it would make sense for HR to report to the CFO is that both entities are focused on planning now for the future - investing in resources that will help grow the business down the line. The Deloitte University Press outlined this potential relationship, elaborating on the element of driving business results. CFOs and HR both consider the long term, making decisions today they know will affect the company years down the line. These investments may be more closely aligned than people think.

As of 2010, 85 percent of a company's assets were intangible, compared to only 40 percent in 1975, according to an infographic from Deloitte. This means CFOs and HR are able to determine a business's worth with greater ease than ever before. 

In addition, as CFO magazine pointed out, financial managers can help ensure regulation compliance for HR, as there are exorbitant fees associated with failing to adhere to federal and state regulations. With finances in mind, CFOs would be able to better prioritize benefits package inspection and required financial paperwork to keep the business afloat. 

Cons of HR reporting to the CFO
Unfortunately, a financial perspective is also a reason why HR may not want to report to the CFO. Fundamentally, CFOs are financially driven, and HR is people driven. As outlined by CFO magazine, the principles used to guide strategic financial decisions for a business are not the same principles that should influence decisions about people, benefits, employee engagement and talent management. Building a strong workforce and attracting top talent in an industry requires spending, and sometimes CFOs can't see beyond the figures on the page. Yet spending funds on recruiting and employee perks could lead to the onboarding of the next CEO. 

When it comes down to it, HR professionals are concerned with office culture and taking care of each individual on the payroll. CFOs are much more concerned with the bottom line. HR leaders have a sixth sense for the type of person an organization needs; relying on a figure-driven party to determine whether this person is good or bad for a particular position may not be best. 

When in doubt, it may behoove a business to place the CEO, CFO and head of HR at the forefront of an organization to lead as a team. 

Creating a team leader-focused performance review process

22 May

Human resources professionals may want to invest in employee management software if they have not already. especially as the methods for employee performance evaluations are beginning to shift across industries. Recently, Deloitte University completely revamped its performance evaluation process based on significant data accrued from employees and managers. HR professionals should take a look to see how their current practices could benefit. Should they decide to make changes, a reliable software platform can help ease that transition. 

What needed to change?
Deloitte University realized it needed a better way to not only recognize performance, but also to clearly observe accomplishments and track employee progress. With reviews once per year, this wasn't feasible. The company now encourages team leaders to review individual performances after every project is completed in addition to meeting on a weekly basis to discuss ideas, thoughts on improvement and other work-related concerns. While working on long-term projects, employees should expect quarterly reviews. In addition, the weekly reviews are to be initiated by the employee instead of the team leader. This creates a much more dynamic discussion rather than a one-sided review. 

How can this change be implemented?
A Deloitte survey found 58 percent of executives don't believe their current performance management systems actually drive employee engagement or work to improve skills, output or productivity. Marcus Buckingham, Marcus Buckingham Co. chairman, told the Society for Human Resource Management recommended those businesses reevaluate the needs of workers and shift to focus more heavily on the team leader-employee relationship. Managers should be asking themselves what team members are capable of, how each individual is applying unique skills, if those skills are working to improve performance and what traits each team member exhibits that may contribute to their current performance. 

These questions put the leader in the driver's seat, though the review is also more heavily engaged with the employee. Employee management software can help human resources professionals and team leaders communicate on issues pertaining to performance reviews and design a system that benefits workers, and in doing so, enhances the value of the entire organization. 

Summary of Benefits and Coverage further delayed

22 May

The Department of Labor released an addendum to its original FAQs page for the Affordable Care Act Implementation. Dated March 30, the new FAQs state the DOL will further delay the Summary of Benefits and Coverage template and all related documents until 2016. Employers and human resources professionals need to pay close attention to the newly proposed dates of implementation to maintain compliance with the ACA and SBC regulations.

What were the original regulations?
In December 2014, the DOL, the Department of Health and Human Services and the Department of Treasury released an FAQ outlining the proposed regulations for all impending changes to the SBC. As Cigna stated, these rules:

  • Dictated when and how employers or insurers are supposed to provide SBCs
  • Streamlined the SBC template, eliminating many questions
  • Edited the SBC glossary
  • Added a more universal cost example

After accepting comments on these proposed changes through March 2, these new regulations were to take effect on September 1. However, these dates have now been pushed back to allow for additional changes being made to the SBC. 

What changed?
As of March 30, the departments in charge of the ACA and the SBC announced they are delaying the application date for some of the proposed changes to 2016. In addition, the original changes announced in 2014 underwent several updates, including, additional edits to the glossary, new claims and pricing data to help calculate coverage price, no more annual limits for essential health benefits information, a more universal cost example, new data on minimum essential coverage and minimum value information and a website for the policy or group certificate of coverage.

It's also possible there will be further changes made down the line; these are simply the current alterations under consideration. Should these amendments be accepted, the SBC documents will become finalized on Jan. 1, 2016, which means the regulations wouldn't technically go into effect until Jan. 1, 2017, when programs take effect for those enrolling in the fall of 2016.

What did not change?
There are, however, several stipulations originally proposed late last year that will still take effect on the previously anticipated date. The following stipulations will become effective Sept. 1, 2015 for any plan that begins Jan.1, 2016:

  • SBCs provided at enrollment and re-enrollment
  • Roles of participants responsible for tracking compliance when working with third parties
  • Health reimbursement accounts and health savings accounts applicability
  • Excepted benefits
  • Expatriate coverage
  • Medicare Advantage plans

Why the delay?
There are several reasons the departments decided to delay the implementation of some of the proposed SBC changes. One reason is businesses employing large numbers of people and insurers offering coverage expressed a need for more time to prepare documents for open enrollment this fall. Employee Benefit News reported the original start date didn't give employers and insurers enough time to change processes and carry out SBC deliveries adequately. The departments also would like to put some of the proposed amendments through consumer testing before implementation.

As evidenced by past changes made to guidelines like the SBC, input from consumers and businesses is critical to finalization. The National Association of Insurance Commissioners and other similar groups now have more time to offer insight, input and suggestions for the departments.

What does this mean for employers today?
While it may seem large and small businesses and their insurance providers have been given the gift of time, that is only partially true. Again, there are still changes that will go into effect Sept. 1, 2015. Plus, regardless of whether employers want to begin switching internal process now or later, Business Insurance noted eventually all parties will have to become compliant with these new regulations down the road. It's a good idea to start now, even if the final rules haven't been announced just yet. 

This is true especially for businesses offering multiple benefits packages. Big corporations with a multitude of benefit options for employees will need to start now to keep up with the changes over the next few years. Each package will require a different statement, and it can't hurt to get ahead by making amendments to the statements now in anticipation of regulation completion later. This is where employee management software can become incredibly useful. HR is burdened with communicating this essential, albeit confusing, information to all employees. With a comprehensive platform that offers support and organization, navigating the rocky waters of SBC changes becomes infinitely more manageable. 

Preparing for FLSA changes with personnel management software

21 May

Personnel management software can help businesses during times of intense transition, especially when it's unclear whether certain changes will occur.

Potential amendments to overtime exemption
Last year, President Barack Obama issued a memorandum calling for a revision of the Fair Labor Standards Act. Obama appealed to the secretary of labor, stating the existing overtime regulations for white collar workers needed to be streamlined and changed to include more employees. 

Since then, the U.S. Department of Labor has announced several different dates on which it planned to release the proposed regulation changes. First December 2014 and then February 2015 was supposed to be the date of issuance. Then, in March 2015, the Supreme Court ruled "a federal agency does not have to go through the formal rulemaking processes" when deciding to make amendments to current regulations. This means should the DOL decide to make significant alterations, it doesn't need to provide a period of time for the public to make comments.

However, it's now April, and there is no word on when employers can expect the definitive new regulations. That doesn't mean businesses should sit quietly and wait it out. There are actions employers can take to prepare themselves for any transition that may soon appear.

FLSA regulations today
Currently, the FLSA overtime regulations state any full-time worker who makes $455 per week, or $23,660 per year, or less can be considered exempt from receiving overtime pay for working more than 40 hours in one week. CNN Money stated employers classify these workers as exempt and make the choice to pay them salaries instead of an hourly wage. Today, only 12 percent of workers qualify for overtime.

Employees affected by this white collar exemption policy include managers, administrative professionals, sales workers, teachers and other professionals in careers that require advanced knowledge in science or the arts, according to the DOL website.

What regulations could look like tomorrow
President Obama's goal is to increase the baseline salary required for workers to be exempt from overtime pay. While regulators have proposed no exact increment, many speculate the DOL will mandate the amount is raised to somewhere between $42,000 and $52,000. This would make 3.5 million and 6.1 million more workers, respectively, eligible for overtime pay.

The Economic Policy Institute and the National Employment Law Project hope the threshold is increased even higher. Ideally, for these groups, the number would get bumped up to $51,168 per year. This would mean 47 percent of workers would be eligible for overtime pay.

How does this affect employers?
Even though no announcements have been made yet, employers cannot ignore this issue. After the Supreme Court decision in March, new guidelines could become reality at any time, and businesses need to be ready to accept the changes and transition.

One thing employers cannot do is forget about state laws. It's possible that the new stipulations could change the way employers reconcile differences between minimum wage guidelines in their states and the FLSA. Employers have to comply with both.

The Society for Human Resources Management stated employers should review current job descriptions to ensure duties, exemption status and responsibilities are clearly expressed to candidates. It also may take several months for the new guidelines to take effect. Should a business have to reclassify a large number of employees, companies may find themselves redefining certain roles or expectations. Preparing options now for potential changes later is a good idea. 

Personnel management software can help businesses not only prepare for a future change but also handle it better when the announcement finally rolls in. 

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