Overtime Rule: How Timekeeping Helps Your Clients
The Fair Labor Standards Act's final overtime pay rule, effective July 1, 2024, raises the salary threshold for exempt employees to $43,888 annually and requires employers to track hours meticulously—especially if reclassifying employees to hourly pay—to ensure compliance, accurate overtime compensation, and transparency under the updated regulations.
The Fair Labor Standards Act (FLSA) final rule regarding requirements for overtime pay went into effect on July 1, and it likely impacted your clients. According to estimates from the DOL, it impacts more than a million exempt American workers that fall between the old and new thresholds. Learn more about the overtime rule and how timekeeping can keep your clients compliant.
What is the Final Rule?
The final rule outlines which employees qualify for overtime pay. In order to be exempt from receiving overtime pay for all hours worked over 40 during a workweek, an employee must meet the following requirements:
- Receive a salary (rather than be paid hourly)
- Meet a salary threshold (recently updated)
- Perform professional, administrative, or executive duties primarily (also known as the “white collar” exemption)
The final rule took effect on July 1, 2024. Now, all employees earning less than the minimum salary threshold are required to be paid at their overtime rate (time and a half) for all overtime hours.
As of July 1, the minimum salary threshold is $43,888 per year (or $844 per week). The previous threshold was $35,568 ($684 per week). There is also a planned increase on January 1, 2025, taking the threshold to $58,656 ($1,128 per week). It will then update automatically every three years based on wage data.
Timekeeping and Managing Overtime
As mentioned, the first step for employers should be determining which employees are affected by the final rule. From there, consulting with a labor law expert to determine the best course of action is an important step.
If your clients have chosen to reclassify employees to earn an hourly wage, timekeeping is an absolute must. Tracking employee hours ensures accurate pay and ensures compliance with the laws established under the FLSA, among other labor regulations. Additionally, time-tracking supports transparency while maintaining employee responsibility.
Ensuring Compliance
Make sure your clients have access to the time and labor platform that makes tracking hours easier and more seamless. They can easily maintain compliance with legal requirements while ensuring payroll accuracy, automating the tasks associated with tracking employee hours.
Your clients can also utilize the mobile app for remote and on-the-go workers, or opt for a smart time clock that uses physical indicators (facial or fingertip scans) to record employee punches.
WorkforceHub does it all. Don’t let your clients be without it when they need to track employee time.
Related
Arizona Overtime Laws - WorkforceHub
Arizona follows federal Fair Labor Standards Act (FLSA) overtime laws, requiring non-exempt employees—including hourly workers and salaried employees who do not meet exemption criteria such as earning at least $684 per week and performing executive, administrative, or professional duties—to be paid 1.5 times their regular rate for hours worked over 40 in a workweek, and employers can mandate overtime work but must compensate accordingly.
New Mexico Overtime Laws - WorkforceHub
New Mexico adheres to the federal Fair Labor Standards Act (FLSA) for overtime laws, requiring employers to pay 1.5 times the regular rate for hours worked over 40 per week to non-exempt employees—including certain salaried workers who do not meet exemption criteria—and while employers can mandate overtime, they must compensate employees accordingly.
Which FLSA Law Did You Break Today?
The article outlines common violations of the Fair Labor Standards Act (FLSA) that employers often unknowingly commit—such as misclassifying employees, improperly docking pay from exempt employees, miscalculating overtime, paying below minimum wage due to deductions, and requiring off-the-clock work—emphasizing the importance of compliance to avoid significant penalties and highlighting the complexity of adhering to federal, state, and local labor laws.
Nebraska Overtime Laws - WorkforceHub
Nebraska follows federal Fair Labor Standards Act (FLSA) overtime laws without additional state-specific rules, requiring employers to pay non-exempt employees, including certain salaried workers who do not meet exemption criteria, 1.5 times their regular pay for hours worked over 40 per week, allowing employers to mandate overtime without a maximum hour limit as long as proper overtime compensation is provided.
Employee Recordkeeping: Are You In Compliance?
Proper employee recordkeeping is essential for regulatory compliance under over 20 laws, including the FLSA, which mandates detailed documentation of employee information, work hours, wages, and payroll data for specified retention periods to avoid legal penalties and ensure records can withstand Department of Labor audits.
Federal Overtime Legislation: What to Know
The Fair Labor Standards Act (FLSA), enacted in 1938 and updated over time, mandates that most U.S. employers pay non-exempt employees overtime at 1.5 times their regular rate for hours worked over 40 per week, with current 2022 salary thresholds for overtime exemption set at $35,568 annually (pending increase to $55,068) and duties tests defining exempt categories, while highly compensated employees face a higher threshold of $107,432 (pending increase to $143,988), and employers must comply with both federal and stricter state overtime laws by diligently tracking employee time to ensure regulatory compliance.