Posts Tagged ‘exempt’

New Overtime Rules on Hold

November 29th, 2016
On November 22, a federal judge in Texas granted a preliminary injunction blocking the December 1, 2016 implementation of the Department of Labor’s new overtime rules. These rules, as discussed in previous PayDay newsletters, would increase the minimum salary for exempt employees from $455 to $913 per week.
The injunction was the result of a complaint filed on September 19 by a coalition of 21 states, later joined by business organizations led by the US Chamber of Commerce. The complaint claims that the Department of Labor overstepped its authority in the drafting of the final overtime rule changes, specifically in regard to the increased exempt salary limits and automatic increases going forward. Upon initial review, the court determined the complaint had merit, citing evidence that the new rules were in violation of Congress’s original intent – which was to use an employee’s “actual duties,” rather than salary, to determine exemption from overtime pay. The court granted the states’ motion for a nationwide, temporary injunction. In the meantime, the court will continue to review the case until a final determination can be made.
What Now?
At this point, it is unknown whether the rules originally set to go into effect on December 1 will be implemented at a later date, will be implemented in part, or will be determined unlawful.
For employers who have already increased employee wages based on the proposed exempt limit, it is recommended by organizations such as SHRM that these changes be kept in place. Taking back raises, unless the expense jeopardizes a business’s viability, may have more negative impact than spending extra money on salaries. Employers who have already paid employees at a higher rate cannot take this money back. If deciding to reduce wages going forward, employers should pay attention to state laws that require advance notice of wage reduction. (Indiana does not have such a law.)
Employers who have not yet implemented changes to comply with the new overtime laws would be wise to postpone these decisions until the final ruling is made.
As of today, the future of the DOL’s new overtime rules is still unknown. While employers can now legally postpone any sweeping internal changes, they should not assume that the overtime rules have been permanently barred. Employers would be wise to have a plan in place if and when it becomes necessary.
AccuPay’s HR Support Center has added the video, “What the Overtime Injunction Means for You” which we are making available to you here.  Our HR experts are also available to help you strategize for handling overtime or any other HR issues. For more information about the HR Support Center or HR consulting through AccuPay HR, call Betsy or Laura at 317-885-7600.
PayDay is an email communication of payroll news, legal updates and tax considerations intended to inform clients and colleagues of AccuPay about current payroll issues and planning techniques.  You should consult with your CPA or tax advisor before implementing any ideas, comments or planning techniques.
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Are You Ready for the New Overtime Rules?

September 21st, 2016

As most employers know, the U.S. Department of Labor has increased the required salary which must be paid to an employee who is otherwise “exempt” from overtime pay.Effective December 1, 2016, an employee who is exempt from overtime pay must be paid at least $47,476 annually ($913 or more per week). This increased salary amount compares to the current required annual salary of $23,660 (or $455 per week).

AccuPay has partnered with HR Answerlink to provide you with a 45 minute on-demand video titled “FLSA Overtime Changes – What Every Employer Needs to Know.” Employers, whether for-profit or not-for-profit, and of all sizes, should watch this video presentation and apply its content to your own unique employee demographics. Also linked here is the U.S. Department of Labor’s Q & A information about overtime rules.

AccuPay HR

As federal, state, and local governments continue to issue increasing regulations pertaining to various aspects of human resources and the dynamics of employer-employee relationships, we have noticed an increasing demand for HR advice from small to medium employers. In response to increasing needs for HR consulting from employers with 1 to 500 employees, we have formed AccuPay HR to assist our payroll clients with their HR needs and concerns.

AccuPay’s staff currently includes three HR Professionals, each certified by the Human Resources Certification Institute (HRCI), as a PHR (Professional in Human Resources) or SPHR (Senior Professional in Human Resources), and each have varied experiences dealing with various types of HR issues. AccuPay’s team also includes two professionals with certifications in the Affordable Care Act (ACA), and whose ACA experiences include both ACA strategic planning with employers and also ACA reporting requirements.

AccuPay HR’s objective is to provide HR/ACA consulting to our clients at budget-friendly rates. Our clients frequently tell us that they need some HR help, but well short of hiring a dedicated HR Director. On demand HR services (phone calls, local face-to-face visits, or specific HR projects) are priced so that our payroll clients can purchase 5 or 10 hour packages of HR time for a year at a time, and we will invoice the HR charges ratably per payroll. OurAccuPay HR one page flyer details some of the more common HR services provided by our team of HR Professionals.

HR Software

AccuPay is a “channel partner” and licensee of a cloud based Human Resource Information System (HRIS) software which helps larger employers (generally 50 plus) manage payroll, HR, time/attendance, benefits enrollment, ACA, and recruitment/onboarding for their workforce/employees. The system is robust in functionality, and is intended to serve a market of employers who have more complex HR needs. A YouTube video of our Kronos Workforce Ready system overview can be seen here.

In Conclusion

AccuPay is growing and evolving to meet the increased HR needs of our clients. We currently have software which meet the payroll, tax, and HR needs of various complexity levels of our clients. As our competitors increasingly focus on do-it-yourself software technology (which is important!), we will continue to focus on people and client service. As always, address your questions and information requests to your dedicated payroll specialist at 317-885-7600.

PayDay is an email communication of payroll news, legal updates and tax considerations intended to inform clients and colleagues of AccuPay about current payroll issues and planning techniques.  You should consult with your CPA or tax advisor before implementing any ideas, comments or planning techniques.
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The Overtime Final Rule – What’s it Mean to Me?

May 26th, 2016

The Overtime “Final Rule” signed by President Obama last week will have a significant impact on employers, as an estimated 4.2 million workers will become eligible for overtime when the law goes into effect on December 1, 2016. The greatest impact will be on employers whose employees are earning salaries just above the former standard of $455 per week. Below is a Q&A, adapted from FAQ’s created by the Department of Labor (DOL), to help employers create a strategy for dealing with this new legislation.

  • What is the purpose of the new Overtime Final Rule?
    • The main purpose of the Final Rule is to update the regulations that determine whether white collar, salaried employees are exempt from the FLSA’s minimum wage and overtime protection. The regulations were last updated in 2004, when the standard “exempt” salary level was set at $455 per week. The new ruling increases the weekly standard salary to $913 per week or $47,476 per year for a full-time worker. 10% of this amount may come from “non-discretionary” bonuses. This would include commissions or established bonuses based on quotas, etc. and paid at least quarterly, but would not include spontaneous/unplanned merit or performance bonuses. The Final Rule includes provisions for the standard exempt salary to be updated every three years. The ruling does not change the standard duties test, identifying terms by which executive, administrative, or professional employees may be considered exempt. The main purpose of the final ruling is to update the wage requirement for overtime exemption, which in effect increases the number of U.S. workers who are eligible for overtime.


  • How do I determine if my employee is exempt?
    • To qualify for exemption, a white collar employee must:
      • be paid a salary – a fixed amount not impacted by quality or quantity or work performed
      • be paid more than $913 per week ($47,476.00 annually)
      • perform executive, administrative, or professional duties as described in the Department of Labor’s duties test (found of the DOL website).
    • In addition, the DOL regulations provide exemption for certain highly compensated employees who earn above an annual compensation of $134,004 under the new rule, and satisfy a minimal duties test.


  • How will employers adapt to the changes in the Final Rule? 
    • Employers have a range of options for responding to the updated standard exempt salary level. Some of these options include:
      • increase the employee’s salary to the new standard salary in order to maintain exemption for a currently exempt employee
      • pay overtime at one and a half times the employee’s regular rate for any overtime worked
      • reduce or eliminate overtime hours
      • reduce base salary (as long as employee still earns minimum wage) and pay overtime for any hours worked over 40 each week
    • The response of the employer will be dependent upon each individual employee’s circumstances. Employers may give raises to those close to the new standard salary, maintaining their exempt status, while choosing to pay occasional overtime to those lower-salaried employees who rarely work overtime. It is important to note that nothing in the ruling requires employers to switch newly “non-exempt” employees to hourly. They can remain on salary, but must be paid overtime if working over 40 hours per week. Employers may use the same means to track overtime as they use for hourly employees. (Ask AccuPay if you need help with timekeeping services.)


  • Who is covered by the FLSA and required to comply with the Final Rule?
    • The FLSA or Fair Labor Standards Act, establishes minimum wage, overtime pay, recordkeeping, and youth employment standards for employees in the private sector as well as in Federal, state, and local governments. In general, employees of enterprises with an annual gross volume of sales made or business done of $500,000 or more who “engage in commerce or in the production of goods for commerce” are covered by the FLSA. Employees of hospitals, businesses providing medical or nursing care, schools (both for profit and not for profit) and government agencies are covered regardless of sales/income. Individuals may be covered by FLSA even if the business is not. For example, if individual employees initiate interstate commerce, such as ordering supplies, he or she may be eligible for FLSA protection even if the business is not.
    • Non-profits and/or their employees, are likely subject to FLSA, although it is possible some smaller non-profits and churches are not. The DOL will be conducting a webinar for non-profits pertaining to the Final Rule on Tuesday, June 7. Visit the DOL website to register. Determining exemption from FLSA is something that must be carefully considered. Churches and non-profits should review all of the guidelines carefully in light of their specific circumstances before making such a determination. There is no “blanket” exemption for non-profits or churches when it comes to the FLSA, and penalties for non-compliance can be severe.


Depending on your workforce, the Final Rule could be significant for your business and your payroll costs. It is important to plan now for how you will implement that new rules when enforced in December. For more information, you can sign up for free webinars conducted by the Department of Labor at If you would like more one on one assistance, try out AccuPay’s HR Support Center. Our HR On Demand service connects you with an HR expert who can help you navigate the new FLSA rules. These experts are available to you on an unlimited basis for just $40 per month, which includes access to the HR Support Center that is full of resources and information on this and other HR topics. Contact Accupay today for more information at 317-885-7600.


PayDay is an email communication of payroll news, legal updates and tax considerations intended to inform clients and colleagues of AccuPay about current payroll issues and planning techniques. You should consult with your CPA, tax, HR or legal advisor before implementing any ideas, comments or planning techniques.

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