overtime - Time Management Systems

Tag: overtime

14 Sep 2017
Judge gavel with books on table

Overtime Rule Appeal Dropped

The U.S. Justice Department announced on September 5 that it will not defend the Labor Department ruling for extended overtime benefits. The rule, which would increase the salary threshold that qualifies workers for overtime pay, has been on hold since November 2016.

The rule would have required employers to pay time-and-a-half wages to most salaried workers earning less than $47,476 per year. Such an increase would have affected more than four million workers, more than doubling the current overtime pay cutoff of $23,660.

Judge Amos Mazzant, who initially blocked the rule, stated that it “improperly focused on workers’ salaries rather than job descriptions.” The Restaurant Law Center, along with other affected groups and businesses, have stated that they will continue working with the Department of Labor to see that workable changes to the overtime rule are enacted.

16 May 2017

The Working Families Flexibility Act: What you should know

The House of Representatives recently passed the Working Families Flexibility Act (H.R. 1180), an act that would provide employees more workplace flexibility. The bill aims to give private-sector employees a choice in how they’re compensated for working more than 40 hours during a given workweek: either with cash wages or in the form of paid time off (PTO).

Employees could earn 1.5 hours of PTO, rather than being paid time-and-a-half, for every overtime hour worked. The bill has sparked much debate—despite the fact that 85 percent of employees consider workplace flexibility a major factor in taking a new job.

While waiting to see whether it passes through the Senate, here’s what you and your employees should know about the Working Families Flexibility Act.

Compensatory paid time off is optional

Private-sector employers can choose to offer PTO accrual as an alternative to overtime wages. However, they must offer both options—no employer can make compensatory PTO a requirement. Employees then have a choice between the two, and it’s entirely up to the employee.

Both employees and employers are protected

No employee can be forced to choose compensatory PTO instead of wages. Employers and employees must complete and sign a written agreement stating that the employee accepts, knowingly and voluntarily, to use compensatory time in lieu of wages. If a union represents an employee, the union must also be part of the collective bargaining agreement.

Employees will be paid for overtime—no matter what

Employees can earn up to 160 hours of compensatory PTO and are free to “cash out” their hours as they choose. The bill states that an employee who requests time off “shall be permitted by the employer to use such time within a reasonable period after making the request if the use of compensatory time does not unduly disrupt the operations of the employer.”

Employers have to approve the amount and dates of time requested off. This particular detail has caused the most debate, due to the fear that employers might “scam” employees and reject time off requests. However, no bill can be without regulations, as there will always be those who try to take advantage of the system.

The bill therefore ensures that employees are compensated for working overtime, no matter what. Employers designate and communicate to their employees a 12-month period—either a calendar year or some other 12-month period determined by the employer—during which the compensatory time must be used. Any PTO not used within 31 days of the designated 12-month period must be paid out to employees at the time-and-a-half overtime rate.

What does this mean for you?

This idea is nothing new—state and local government employees are already given the option between PTO and overtime pay. However, as of now, the Senate will have to vote in favor of the bill before it can move forward. If it passes, the proposed law would offer private-sector workers the flexibility to attend to personal needs and balance them more evenly with workplace commitments.

Still have questions? Read more about the Working Families Flexibility Act, or get in touch with us. We’re always happy to help!

16 Nov 2016
Should You Reclassify Employees?

Should You Reclassify Your Salaried Employees?

How to Decide if Overtime Will Be a Burden for Your Business

It’s almost the holiday season, which could mean longer hours for your employees. So what will you do when the standard overtime salary threshold jumps from $23,660 to $47,376 on December 1? Will your salaried employees be eligible for time-and-a-half? It’s time to find out. To minimize overtime costs, you’ll also want to look closely at whether these employees should be reclassified.


10 Oct 2016
Overcome the Time-Tracking Stigma

Overcome the Time Tracking Stigma

How to Talk to Employees About Salary Reclassification

The Department of Labor’s new overtime rule might initiate some awkward conversations with your previously exempt salaried workers. The trouble is that, in order to pay them overtime, nonexempt but salaried workers will need to start tracking their work hours—and some of them may not be happy about this. (more…)