Dive Brief:
- According to a recent survey of 27,000 American employees, nearly 36% say they don't have to input their hours worked, a data point that does not bode well for employers when it comes to being prepared for the Dept. of Labor's overtime exemption rule Dec. 1 deadline.
- The 2016 "Getting Paid In America" survey, from the American Payroll Association (APA), in fact found that the number of employers who don't require hour logging actually has gone up by 3% since 2015.
- An estimated 40% of full-time workers are expected to become eligible for overtime pay when (and if) the minimum salary required for exemption from overtime increases from $23,660 to $47,476 annually. with the rule, salaried employees earning below the new salary threshold will be eligible for overtime pay, which makes tracking of their hours worked critical.
Dive Insight:
Though nearly 36% of survey respondents say their company still doesn't require them to enter hours worked (and another 13% continue to use a traditional time card or time sheet), one expected change by employers to meet the challenge of the overtime rule includes the ongoing, technology-fueled shift in the way businesses track time. In fact, the new rule is forcing employers nationwide to consider changing technology platforms to more closely track employees' labor hours, say payroll experts.
Yet, even with the overtime rule now being the subject of two lawsuits — that, if successful, could give employers and payroll professionals within HR somewhat of a reprieve if the courts decide in favor of the overtime rule opponents — smart employers will either get started or continue to plan for the Dec. 1 deadline.
