News & Publications

5 Ways to Leverage Technology for Overtime Compliance

SHRM

Adam S. Forman and Jeffrey H. Ruzal, Members of the Firm in the Employment, Labor & Workforce Management practice, co-authored an article in SHRM, titled “5 Ways to Leverage Technology for Overtime Compliance.”

Following is an excerpt:

On Sept. 24, 2019, the U.S. Department of Labor (DOL) announced a final rule to the Fair Labor Standards Act. ... The new 2019 final rule, like its unsuccessful predecessor, will still significantly increase the number of employees eligible for overtime pay. ... The new rule will take effect on Jan. 1, 2020. ...

Many employers will have to decide whether to raise the salaries of their currently exempt workforce or reclassify them as nonexempt workers and pay them overtime for all hours worked over 40 in a workweek. Some employers will ultimately determine that increasing the salaries of some of their previously exempt employees to comply with the new overtime rule is not economically feasible. These businesses will be required to account for newly nonexempt employees' work time. ...

Employers can help workers deal with this transition, while simultaneously minimizing their risk of liability for wage and hour claims, by leveraging innovative and user-friendly technologies.

To that end, employers should consider the following five ways that they may be able to use existing or new low-cost technologies to assist them in maintaining wage and hour compliance:

  1. Remote access.
  2. Monitoring and auditing software.
  3. Time-keeping software.
  4. Electronic disclaimers and messages.
  5. Eliminate technologies.