Technology will definitely play a role in compliance with the new overtime rules. Here are 2 areas where it will have opposing influences.
1. One area where technology will play a positive role is very clear. The new overtime rules should make all business owners much more aware of the importance of accurately tracking their employees time at work. If you have employees who are now qualified for overtime, or who may be qualified, experts suggest now is the time to get them started on clocking in and out so that they can get used to the concept and you can track their time at work, manage and verify the existence, or non-existence, of overtime and ensure employees are paid correctly. There is no better way to track employees time at work than with a technologically advanced automated time and attendance (ATA) system, such as the quality ATA system Time & Pay offers to its customers. Any company that is using time sheets or an outdated manual time clock with time cards is wasting time and money and may not be effectively managing overtime.
A quality ATA system allows employees to clock in using a variety of devices including pc’s, biometric clocks (to prevent buddy punching), and smart phones with GPS capabilities so that you can manage where employees clock. Time data can be obtained instantaneously for on-time management of employees time at work by their managers. Labor hour allocation can easily be managed from department to department, location to location, job to job, etc. Piece workers can report pieces, Restaurant workers can report tips. Quality ATA systems can be used by employees to request time off while management uses the system to track PTO usage and accrual. Schedules can be built and monitored. At the end of the pay period all this valuable data can be automatically interfaced with payroll to give management the tools they need to control and define their labor costs. A quality ATA system will easily help your business manage overtime and ensure your business is in compliance with the new overtime rules. At the same time, it will provide your business with an excellent return on investment.
2. On the other hand, an area of concern for employers is the now ubiquitous use of technology 24/7. Many employees, particularly those with management responsibilities, are used to checking their email or other work related apps on their laptops or smartphones anywhere and at all hours of the day. However, now that many of those employees may be subject to overtime due to the increased salary caps, will employers need to limit their employee’s access to work related information rather than risk overtime liability? The Dept of Labor, due to requests for clarification from employers, is soliciting information on the use of electronic devices by employees and considering how much of that use falls under what may be considered De Minimis activity. As businesses are asking if they will now be required to track the use of technology by employees off-site and after normal hours, it is believed that the Labor Department and the courts are going to be looking at it from the standard point of view: Are the duties performed primarily and necessarily for the benefit of the employer. It has been found this can be an ambiguous distinction.
As you can tell, with the increased number of employees who will now be subject to overtime, employers, employees and their legal representatives are gearing up to make sure the definition of time at work is clearly understood and that it is being accurately tracked. Employers should be preparing now for the Dec. 1 implementation.
About Time & Pay:
Time & Pay is a professional payroll service provider located in Johnson City, TN. We service businesses of all sizes and types throughout the United States. Founded in 1992, Time & Pay provides businesses with complete payroll services , guaranteed payroll tax compliance, automated time and attendance systems and services, pay-as-you-go worker’s comp, human resource management systems and services, and more. We provide our customers with the cost effective tools you need to better manage your payroll, your employees and your business. Time & Pay’s services guarantee you will save money, time and aggravation and we back them up with the customer service you expect and deserve. Contact Us today to learn why business owners throughout the country are saying:
“Time & Pay! Why would you do payroll and timekeeping any other way?”
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