New FLSA Requirements for Tracking Employee Overtime

By on Jul 28, 2016

As you may know, the Department of Labor has updated the “Overtime” rule contained within the Fair Labor Standards Act (FLSA). These new rules become effective December 1, 2016. The FLSA sets minimum wage, overtime pay, recordkeeping, and youth employment standards for employment subject to its provisions.

I have received a few emails asking for guidance because of the upcoming rule change. Here’s an example:

Good morning, Steve!

I have a question rather than a tip. With the upcoming Department of Labor Overtime Rule, our agency is contemplating installing a computer time clock program to accurately track and manage hours for our employees.

Do you know of any such programs that you would recommend?

You should consult an employment attorney to determine what rule-keeping requirements your agency is required to follow.

According to the Department of Labor, every covered employer must keep certain records for each nonexempt worker. The Act requires no particular form for the records but does require that the records include certain identifying information about the employee and data about the hours worked and the wages earned.

So you do not need work time-tracking software. However, it may be much easier to follow the requirements of the rule if you have it.

If you have not taken the time to understand the changes in this rule, the Department of Labor has created a comprehensive Question and Answers website.

A fact sheet (PDF) specifically addressing the recordkeeping requirements under the FLSA is available here: Fact Sheet #21: Recordkeeping Requirements under the Fair Labor Standards Act (FLSA).

I have done a bit of research on various vendors that provide timekeeping solutions. This list is by no means comprehensive. However, my hope is that it will give you a place to start if you decide your agency should add a work time-tracking solution.

As a reminder, many of your existing clients are facing the same issue. This may be an excellent opportunity to provide them with information and additional resources.

You also might want to wait a bit before committing yourself to a record-keeping solution. There is a group of House Democrats that are pushing back on the DOL rules. Here is an article in the Independent Agent Magazine: Group of House Democrats Pushes Back on DOL Overtime Rule.

Does your agency currently track employee work time for overtime pay? If so, what solutions are you currently using? Let me know.

2 Comments

  1. Our agency used a product, TimeClock Plus. I say that because we still use it for PTO tracking and reports, but we have NOT upgraded to the most recent version. http://timeclockplus.com/

    It may be worth exploring.

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