Non-payment of overtime pay is considered a major act of wage violations in America.
The proposal to review overtime pay enjoys a lot of support from labor unions and worker advocates, who see it as a necessary revision to reflect cost-of-living increases and stagnant wages. The business community, on the other hand, feels that it is needlessly expensive, and could potentially cost jobs and curtail career advancement. This rule is not just applicable to employers, but also staffing agencies which deploy independent contractors and contingent labor to client locations.
Companies have been waiting for information on the proposed changes to overtime pay for over six months now, with nothing much to hear. The Department of Labor has finally revealed that the final Overtime Regulations will not be released until late 2016, as the DOL is engaged in considering each of the nearly 300,000 public comments received in this regard! So the wait will have to continue until well past the April/May decision deadline promised at the outset.
If approved in full, the regulation would require the following:
It is important to note that the rule, once announced, will become effective shortly thereafter, requiring employers to initiate their strategy for compliance with their requirements within a period of 30 to 60 days.
Some immediate steps that employers and staffing suppliers could take, to ensure compliance when required, would be to:
Reclassifying workers as non-exempt and having them track their working time could be seen by the workers as a demotion and create negative feelings. When revising an employee’s exempt status, companies may need to be addressed, to prevent any employee relationship issues. In all cases, employers would need to avoid practices like non-payment of overtime to their workers. They will also need to set up audit trails, using automated time and attendance processes if possible, which can protect them from any claims and penalties in future.
Do tell us about the plans you have made in this regard.
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