FLSA Overtime Threshold Changes and the Effect on Your Clients

May 6, 2024
Regulatory Compliance, Time and Attendance

The Department of Labor (DOL) recently announced its final overtime rule, titled Defining and Delimiting the Exemptions for Executive, Professional, Outside Sales, and Computer Employees. It effectively revises existing regulations under the Fair Labor Standards Act (FLSA), potentially impacting a large number of your clients with employees who are classified as exempt. Learn more about the final rule and its changes to the overtime threshold, some of which are going into effect as soon as July 1, 2024.

The FLSA Overtime Threshold

Under the FLSA, certain employees are required to be paid overtime for all hours worked beyond 40 in a workweek. However, the law also includes exemptions, referred to as “white collar.” Those working in specific executive, administrative, or professional roles, performing the corresponding duties, and earning above a certain threshold, aren’t required to be paid overtime. Highly compensated employees (HCEs) also have a separate threshold that is an exemption to the final rule requirements.

Review the changes made to the overtime threshold in our blog post here.

How to Help Your Clients

It’s important to assess which of your clients might be impacted by this change and provide the appropriate support. Your clients may need to consult with an attorney to determine the best strategy for ensuring compliance with the updated overtime threshold.

Impacted employers can also determine the right strategy to comply with the updated salary minimum. The two main options include:

  • Reclassifying employees as non-exempt and providing overtime pay for all hours over 40 in a workweek
  • Increasing the salaries of exempt employees who fall below the updated minimum

Tracking employee time

Clients who opt to re-classify employees will need to ensure that those individuals are set up for proper time tracking. This is one area where you can help! Make sure your clients have access to WorkforceHub, the solution that simplifies employee timekeeping for employees in all situations.

If you’re not currently a Swipeclock partner, explore how you can become one and provide this user-friendly and highly intuitive platform to your clients who need to track employee time.

Help your clients remain compliant with the DOL final rule, along with other time and labor regulations, with WorkforceHub.

Allie Blackham

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