You must comply for overtime pay for employees and HR Simplistic can help you. These tips can help organizations maintain overtime pay records. It is important that you comply with all aspects of overtime pay.
Reevaluate Workflow Highly compensated employees who are consistently coming in above the overtime threshold could end up costing the organization a lot of extra money in overtime pay. Look into options such as transferring tasks to a staff member who earns a lower hourly rate or who does not have as much to do. It might even make sense to bring on new hires to lessen the burden on employees as well.
In some organizations, employees simply show up and work, then leave for the day without tracking how much they work. As a result, these employers will not have any idea whether the company is complying with the new regulations. Start now to implement an accurate time tracking and attendance system, even for salaried employees. This allows supervisors to track hours and be aware of when an employee must be paid for overtime work.
Shift Employee Classification Because these changes to the FLSA laws apply to exempt employees, it may make sense to reclassify employees as non-exempt to eliminate the risk. You can also raise an employee’s salary to put him or her above the threshold but be cautious to maintain fairness.
Overtime Wages are Miscalculated
As a small business owner, you must calculate overtime wages correctly – overtime wages are completely different than regular wages. You will owe wages, penalties, and interest if you do not pay the correct overtime rate. Fixing payroll errors means taking a close look at the overtime wages.
According to the FLSA, you are required to pay employees 1.5 times their regular rate of pay, or time and a half, for time worked past 40 hours in a workweek. For
example, if an employee is regularly paid $10 per hour, then you owe them $15 per hour for overtime worked. Note that most states and cities have different overtime wage laws so be sure to study if you are required to follow the more stringent rules.
To maintain compliance as an employer you may need help from an expert in timekeeping and payroll. Contact us for more information.