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Department of Labor Announces Details of Final Overtime Rule

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Yesterday, the U.S. Department of Labor announced the final details of its overtime rule in a fact sheet issued prior to publication in the Federal Register.

Key provisions of the final rule:

  1. Set the standard salary level at $913 per week or $47,476 annually;
  2. Set total annual compensation requirements for highly compensated employees to $134,004; and
  3. Establish a mechanism for automatically updating threshold levels every three years to ensure it remains relevant.

If there’s a silver lining in the final rule for employers, it’s that the effective date is set for Dec. 1, which gives businesses a little more time to comply than the original predictions of 60 to 120 days.

Employers also will be allowed to use non-discretionary bonuses and incentive payments (including commissions) to satisfy up to 10 percent of the new salary threshold.

As a result of the changes in salary level, the number of workers employers must apply the duties test to is reduced, simplifying the exemption.

Taking Action

Knowing the number of salaried employees making less than the new threshold, as well as the number of overtime hours they work, may help you determine the best options for mitigating the impact overtime changes could have on your business.

One option is to convert salaried workers making less than the new threshold amount to hourly. This option would require the tracking of hours worked and overtime paid, according to the Fair Labor Standards Act.

Another consideration is to raise some employees’ annual salaries above the new threshold of $913 a week ($47,476 per year) in order to preserve their exempt status. This solution might apply best to situations in which overtime hours cannot be avoided, because paying these employees time-and-a-half actually would be more expensive in the long run than simply raising their salaries above the new threshold.

Other options include shifting more work to other salaried employees or hiring additional people to offset the workload performed by previously exempt employees who now will have to be paid time-and-a-half for overtime hours.

There are many scenarios to consider and with the Dec. 1 deadline looming, it’s important for employers to not only prepare for the new overtime protections, but have a scalable plan in place to address the automatic threshold updates scheduled for every three years.

Is Your HR Tech up to the Task?

Your HR technology should play a pivotal role in managing any workforce challenge. From scheduling, time tracking and overtime reports to hiring, training and compliance, the right HR software will offer a full-service, single-database solution to handle it all.

For more information regarding the overtime rule, stay tuned to our blog. We will be updating as new changes surface. Additional resources on overtime expansion can be found at Paycom.com/overtime.    


Brie Hobbs

by Brie Hobbs


Author Bio: For more than eight years, Brie has been writing to both job seekers and business leaders about human resources and the challenges facing today’s workforce. Her articles have appeared on award-winning career and HR blogs, as well as on the International Franchise Association’s SmartBrief and other notable publications. With a background in franchising, Brie focuses on helping franchise organizations understand how Paycom’s human capital management technology can benefit their business.

core values

Defining Game-Changing Core Values to Attract Superstar Talent

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March is over, but the madness HR deals with never ends. Fortunately, your organization’s core values can be a real game-changer in the competition for top talent. In a recent episode of the HR Break Room podcast, Kinetix CHRO Kris Dunn discussed the valuable lessons HR can learn from the annual college hoops competition.

Here is a sampling of our conversation on why core values matter – in basketball and in business.

The margins for talent are small

 When recruiting high-quality talent, organizations actually compete on a tight playing field, and like a single-elimination tournament, hiring is a one-and-done process. When an organization edges out other companies in the quest for top talent, it ultimately has the advantage over competitors, and may even move up to face much larger businesses as a result.

In college basketball today, nearly all universities that advance to the final games have chosen to grow their teams over several years, instead of recruiting superstars who play for one season before going pro. In developing talent for the long term, your organization can succeed against the competition too.

Listen to the full conversation with Kris Dunn in “Slam Dunk: Defining Game-Winning Core Values,” an episode of the HR Break Room podcast.

Define and promote core values to attract top talent

 Compare a successful business to any winning basketball team, and you will find a common thread: well-defined core values. This year’s tourney winner, Villanova, places a high value on learning and development by retaining players for multiple years. The value of practical education permeates the entire organization. Consequently, Villanova has a great skills development program.

When defining core values for your organization, it’s important to determine which traits support overarching strategic goals. Once these values have been determined, communicate and promote them to the outside world so you can attract talented individuals who share those values. To create the best possible experience for prospective candidates, these values must be transparent and consistently demonstrated within the organization.

Know what makes your organization special

 No two teams play the same way. Some apply pressure to opponents; some play a specific type of zone defense; and still others want to run out the clock. Similarly, each top-performing organization has its own unique company culture, driven by its core values.

Take any sample of American companies, and you’ll find various ways to make decisions, assign responsibility and define success. Differing approaches to culture directly reflect the core values of each organization, because your culture is born from the values most consistently on display.

For an entire organization to own its culture and core values, HR must invest in the company’s desired identity, and encourage leaders to go “all in.” This can help differentiate your organization from other companies competing for top talent, and give you an edge in identifying and recruiting prospective employees likely to make valuable contributions from day one.

Enjoy this article? check out Swish! 5 Talent Lessons I’ve Already Learned From the NCAA Tournament This March

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Posted in Blog, Featured

caleb.masters

by Caleb Masters


Author Bio: Caleb is the host of The HR Break Room and a Webinar and Podcast Producer at Paycom. With more than 5 years of experience as a published online writer and content producer, Caleb has produced dozens of podcasts and videos for multiple industries both local and online. Caleb continues to assist organizations creatively communicate their ideas and messages through researched talks, blog posts and new media. Outside of work, Caleb enjoys running, discussing movies and trying new local restaurants.

Anonymous Sexual Harassment Reports

Building Employee Trust with Anonymous Sexual Harassment Reports

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Employee trust is one of the most important factors in handling sexual harassment complaints. Employees need to trust HR will listen to their concerns and will respond appropriately to reports of sexual harassment. Yet the EEOC notes only about 30% of employees who experienced harassment reported the harassment internally within their company.

One way HR can help build trust with employees is with a robust system of reporting and investigation that allows anonymous complaints and communications.

If clear procedures are communicated to employees and consistently followed, an anonymous complaint process can help build trust that HR is prepared and committed to investigating harassment complaints in a fair and thorough manner.

Make a plan and stick to it

 As with all company policies, developing your procedure ahead of time, and following it when issues arise, are key to workplace fairness. Following the steps of a robust and outlined policy can also help limit company liability after an incident occurs by demonstrating the company seriously investigated the complaint and took appropriate action in accordance with its policy.

Providing the means for employees to make anonymous complaints can help employees trust their complaints will be handled discretely and appropriately, and can help lessen employee concerns about retaliation.

Some employers contract with an outside vendor to provide a third-party anonymous reporting system that will pass on complaints only to a specific person or group who needs to know of the complaint in order to investigate. The vendor can also allow the person making the report to specify individuals who may be involved in the behavior, so those people will not receive access to the anonymous report.

Follow up

 Take anonymous reports as seriously as any other type of report, including face-to-face complaints. Recognize the reasons an individual may wish to remain anonymous and be sensitive in your response.

Think of anonymous reporting as simply another pathway to allow your employees to share their concerns, in addition to the other methods available to them, like discussions with HR personnel or meetings with supervisors. Thoroughly investigate any complaint made, regardless of whether the person who filed a report chooses to remain anonymous or not.

Don’t promise more than you can deliver

 Communicate to employees that they can make a report of sexual harassment completely anonymously. However, if they choose to identify themselves in a complaint, don’t promise you will be able to keep their identity secret. Make clear you have a duty to investigate all complaints, and this may involve interviews with the person or people accused of taking part in inappropriate or harassing behavior.

Emphasize the company will follow its internal procedures. Do not imply or promise what may result from an investigation after an employee complaint is made. An anonymous complaint is the first step of a workplace investigation, and must be investigated in accordance with policy, just like any other type of report.

It’s important to take your company’s responsibilities seriously when you respond to sexual harassment complaints. A robust policy that allows anonymous reports and responds with an impartial and thorough investigation to each anonymous complaint can be an effective part of an overall anti-harassment strategy, and can help build and maintain employee trust in HR personnel and anti-harassment efforts.

 Disclaimer: This blog includes general information about legal issues and developments in the law. Such materials are for informational purposes only and may not reflect the most current legal developments. These informational materials are not intended, and must not be taken, as legal advice on any particular set of facts or circumstances. You need to contact a lawyer licensed in your jurisdiction for advice on specific legal problems.

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Posted in Blog, Compliance, Featured

Erin Maxwell

by Erin Maxwell


Author Bio: As a compliance attorney for Paycom, Erin Maxwell monitors legal and regulatory changes at the state and federal level, focusing on health and employee benefits laws, to ensure the Paycom system is updated accordingly. She previously served as assistant general counsel at Asset Servicing Group in Oklahoma City. She holds a bachelor’s degree from the University of Central Oklahoma and a J.D. from the University of Oklahoma. Outside of work, Maxwell enjoys politics, historical mysteries and spending time with her family.

Leaders

Levels and Landscapes: Equipping Tomorrow’s Leaders

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Leaders are “the primary factor behind employee productivity, commitment and bottom-line profitability,” according to research from leadership consultant expert researchers Zenger Folkman.

The stakes are high, which doesn’t make it any easier to ensure the leaders in your organization are reaching their full potential, or that your next crop of leaders will be up to the task. In fact, research shows that one of the five largest challenges HR faces in 2018 is developing leaders. To make sure your organization’s current and future leaders are in good shape, help develop them through the five levels of leadership with an eye on your specific organization’s landscape.

John Maxwell’s levels of leadership

 In the fast-paced global economy, strong leadership is key to helping employers innovate and adapt on a dime. But before delving into the vast array of advice, employers must first assess their own leadership. According leadership guru John Maxwell, there are five different levels of leadership a leader may progress through.

Maxwell’s levels are:

  1. Position
  2. Permission
  3. Production
  4. People development
  5. Pinnacle

 

As leaders grow, they should progress through the levels of leadership, which build on top of each other. For example, when a leader reaches the third level, Production, their priority is to produce results. Maxwell writes, “[t]he Production level is where leaders can become change agents. Work gets done, morale improves, profits go up, turnover goes down, and goals are achieved. The more you produce, the more you’re able to tackle tough problems and face thorny issues.”

When a leader reaches the final level – Pinnacle –  they reproduce other leaders who are willing and able to develop still more leaders. Their organizations thrive, and they develop a personal legacy of leadership.

Leaders in all areas of an organization can identify where they can grow to move toward Pinnacle – which benefits them, their companies and everyone they work with.

Knowing your business landscape

 The way a leader carries out Maxwell’s five levels may look somewhat different depending on your business and industry. According to a recent study in the Harvard Business Review, different kind of enterprises thrive under different types of leadership. Businesses should take stock of their products, makeup, competition and the types of people who rise and fall in the ranks to understand which leaders are best suited for their future endeavors.

According to the study, “[l]eadership styles, or brands if you prefer the term, are always contextual. Different kinds of leaders are minted in different organizations.”

This gives your organization an opportunity. Determine how the best, most effective leaders in your company lead. How do they make decisions? What are their priorities, and how do they communicate those to their employees? What are the commonalities your top leaders share? Then, seek those common elements in your rising leaders to build a strong bench of future leaders.

In an upcoming webinar presented by John Maxwell on HR.com, gain insight on how leaders can develop themselves and others. Don’t miss this opportunity to learn how you can grow leaders and elevate the rest of your organization while you do it.

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Posted in Blog


Author Bio: Jason Bodin has been the communications pulse for a number of organizations, including Paycom, where he serves as director of public relations and corporate communications. He helped launch Paycom’s blog, webinar platform and social media channels. He aided in the development of Paycom’s tool to assist organizations in complying with the Affordable Care Act, one of the largest changes in health care the country has seen. A graduate of the University of Oklahoma, Bodin previously worked for ESPN and FoxSports. In his free time, he enjoys adventuring with his family, reading and strengthen his business acumen.

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