Beginning in December, salaried overtime exempt employees whose pay fall below the $47,476 (administrative) and $134,004 (executive) pay threshold, will be entitled to overtime pay due to the soon-to-be higher income threshold. For these salaried workers who will be affected by the new overtime pay requirements, it’s important to begin tracking their actual hours worked now to ensure that the hours:
A) Don’t exceed 40 hours a week, or
B) that employees are awarded the overtime pay they’ve earned.
FLSA Changes: Decision Making - What should we do first?
Identify which of your current white-collar overtime exempt employees will be newly classified as non-exempt.
- Calculating the hours worked by affected exempt employees.
Surprisingly, from recent discussions with clients about where to start their club’s assessment, this step seemed to cause the most hesitation, “How can we ask our salaried exempt employees to start clocking-in?” I assume most employers have accepted the fact that their payroll cost will likely rise, and the best way to predict what that cost may be, is to track how many hours the affected employees are actually working.
Asking your salaried overtime exempt employees to begin tracking hours worked without providing detailed reasoning may cause confusion. You’ll want to clearly communicate with employees that this is for tracking and preparation purposes only, and will have no effect on their current salary. The sole purpose is to prepare for compliance with the new laws – not micromanagement.
However, tracking time does not have to be a daunting task. And, you don’t have to purchase punch clocks for every administrative office either. With a web-based payroll and time keeping management system there are several ways to empower your club’s employees’ to track their hours. You may be surprised how easy it is to get your staff onboard when the right tools are in place.
Empower your club staff by utilizing mobile timekeeping.
An easy way to engage your employees is to allow them to go mobile for submitting their time off requests, and tracking their day-to-day work hours.
Basically the mobile timekeeping feature allows an employee:
Clock In, and GPS location tracks where on the property they clocked in
Online Leave Request and PTO Balance lookup
ClubTime Webinar: Thursday, August 11, at 2:30pm EST -Register Here
Why go through the trouble?
This information is needed for a period of time to accurately assess which compensation strategy is the most appropriate; and for conducting a compensation analysis for each employee.
Failure to properly estimate an employee’s hours worked may lead to shocking results when you reclassify them as hourly. For instance, calculating and employee’s new hourly rate based on the assumption that they’re working 40 hours per week could lead to a huge amount of unexpected overtime liability if the employee has actually been working more than 40 hours per week on a regular basis.
"Can We Talk?"
It's a safe bet that your employees will have heard about the impending rule change, and they'll be looking to you for answers about how it will affect them. This is a perfect time to begin engaging your club staff on the topic, even if you haven't mapped out the details of how you will respond. An honest "we're figuring this out" answer can be better than silence.
Contact us today to help begin your club’s impact assessment before the clock runs out.
Join us for a live webinar demonstration of our ClubTime Labor Management System. Thursday, August 11th at 2:30pm EST – Register Here
ClubPay offers an integrated time and attendance solution with bio-metric clocks, mobile app, and enhanced Club HR Services to help you respond confidently to the unique challenges faced in today's employment market.
"FLSA Changes: Decision-Making Guide” The HR Pros: White Paper 2016
“Webinar: Doomsday Prepper's Guide to Overtime Law”: Alfred Roush, Esq. SPHR, SHRM-SC, VP of HR Services, Certipay: June 2016