Federal Overtime Law may be disappointing for workers and stressful for business. Part 2 Raise let down

By September 27, 2016Overtime Laws

Timekeeping and Tracking Every Minute

Continued from Part 1

Many employers have chosen to provide the exempt status to employees so that the burden of timekeeping would be lifted. Not only are accurate timekeeping records important, but it is the business that is responsible for maintaining and providing those records. Non-exempt employees get more flexibility and don’t have to log in and out or track break times and employers don’t have to worry about overtime reporting abuse.

 However, keeping good time keeping records is made more difficult in this era of connectability. Employers have to train upper level managers to ensure that all time spent is tracked. Employees who respond to emails from home or connect remotely must track all time that is work related. Employees who stay through lunch and work late also need to track their time. This can be a difficult situation for employers to navigate and provide time tracking tools for their employees.

Fortunately, Swipeclock has the tool for every business to make time tracking accessible, sustainable, and accurate. From web based application to time clocks, biometric time keeping clocks and mobile time tracking devices, employers can track employee time and easily maintain the records required by the Department of Labor. Additional tools for workforce management, time off requests, and scheduling are all tools that SwipeClock provides.

Will employees be disappointed on December 15?

Raise let down

When the first paycheck after December 1 hits, will employees see the raise or promotion that they may be anticipating? Although much of the news and media outlets have focused on the raise that employees will be getting, the reality is likely a pay raise let down. Many employers are likely to put employees on hourly wages and to restrict overtime use. In some positions, such as sales positions, this is likely to actually decrease an employee’s income. This is because many sales positions are primarily commission with a minimum wage. When the employer restricts overtime use, then the employee is restricted from working for more sales and thus misses the extra commission that would have been obtained. Since the wage is minimal, the employee sees a decrease in wages instead of an increase.

It is likely that workers will not see the touted wage increased that the Department of Labor has estimated will occur. This is because those estimates are based largely on overtime hours previously worked by exempt employees and does not take into effect overtime restrictions for the newly non-exempt employees. Businesses will still need to maintain a positive bottom line and most small to medium sized businesses cannot simply afford to start paying thousands a year in overtime wage.

Part 3: Tracking employee

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