How businesses in one region are preparing for implementing the new OT rules
The final FLSA overtime regs have arrived. So what are companies doing to prepare for Dec. 1, 2016, when the rules kick in for real?
ERC, a human resources service organization based in Northeast Ohio, recently conducted a survey of its members to determine how companies were preparing for the new FLSA regimen.
A quick look at the results, which were published on the ERC blog:
- Conduct an analysis to identify employees near the $47,476 threshold — 80%
- Conduct a time study to determine which potentially impacted employees work more than 40 hours per week — 29%
- Communicate with potentially impacted employees how the new rules will affect them — 28%
- Perform a market analysis to see if pay levels are competitive for potentially impacted employees — 28%
- Update salary budgets to account for potential increase in overtime — 23%
- Consult legal counsel to ensure compliance with the new rules — 20%
- Implement new time tracking procedures and/or systems — 16%
- Nothing to date — 10%
- Other — 9%, and
- Limit or eliminate telecommuting or remote work options — 6%.
While it’s true this survey doesn’t cover a huge number of companies — just 127 organizations participated — these numbers seem like they’re probably indicative of what most employers are doing to align their pay practices with the new FLSA rules.
We’re a little worried about that 10% that reported they hadn’t done any planning for life under the new rules. Although the feds did give employers more time to comply than is customary, these rules will surely require some serious analysis and adjustment in pay procedures — a process that could eat up a considerable chunk of time and manpower.
