Nearly 36 percent of America’s workers are not currently required to input their hours worked, according to recent findings of the 2016 “Getting Paid In America” survey from the American Payroll Association (APA). The results, a three percent increase from 2015 survey findings, show many businesses may still be unprepared for the Department of Labor’s “white-collar” overtime exemption rule that goes into effect in December.
“Though nearly 36 percent of survey respondents say their company still doesn’t require them to enter hours worked (and another 13 percent continue to use a traditional time card or time sheet), we in the industry anticipate a technology-fueled shift in the way businesses track time,” said Mike Trabold, director of compliance risk at Paychex, Inc. “Regulations such as the Department of Labor’s Final Overtime Rule, which will go into effect on December 1, 2016, are forcing businesses across the country to consider changing operations to more closely track employees’ labor hours.”
The DOL ruling will impact the executive, administrative, and professional (EAP) exemptions under the Fair Labor Standards Act (FLSA). An estimated 40 percent of full-time workers are expected to become eligible for overtime pay when the minimum salary required for exemption from overtime increases from $455 a week ($23,660 per year) to $913 per week ($47,476 per year). Salaried employees making less than the new salary level will now be eligible for overtime pay, making tracking of their hours worked critical.
The “Getting Paid In America” survey was held in conjunction with APA’s annual public awareness campaign, National Payroll Week (NPW). Over 27,000 individuals responded to the survey, providing insight into how workers are paid in America. The survey asked, “How do you input the hours you work at your place of employment?” Nearly 36 percent of respondents indicated that they are not required to track and document their time spent on the job. (For complete results, visit www.nationalpayrollweek.com.)
“Payroll professionals should ensure their organizations are investigating single-source, unified human capital management (HCM) solutions which manage the employee lifecycle from pre-hire to retire,” said Bob DelPonte, vice president and general manager of Kronos Incorporated. “Not only will this help mitigate compliance risks such as the Fair Labor Standards Act (FLSA), just as importantly, an HCM strategy will ensure managers are recruiting, retaining, and developing the most engaged workforce possible.”
