Device Management and the DOL’s Final Rule on Overtime

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The Department of Labor has issued the final rule that updates regulations on overtime in the workplace beginning December 1, 2016.  Employers will need to update device management policies in order to effectively comply with this new law. +

Smartphones and the Workplace

Company-issued smartphone users work an average of 13.5 hours per day and 72 hours per week,++ and only spend about three hours each day involved in other activities such as family time and exercise.  Given that more and more organizations encourage a balanced lifestyle, this statistic is staggering.  According to SAP Chief Human Resources Officer Stefan Ries, employers need to encourage and set the tone that their employees should not and are not expected to work during personal time.  This is especially important for organizations that want to avoid overly excessive costs with the new overtime regulations.

Tips for Human Resource Departments

  • Figure out an approach to the final overtime rules and decide which jobs in the organization will be exempt.
  • Figure out a system to track actual hours worked for hourly and salaried nonexempt employees and verify often.
  • Determine training and methods to communicate and implement the overtime changes in the workplace.

Tactics for Employee Classification Changes

  • Increase the salary level to maintain the exemption – and not worry about overtime.
  • Divide the current salary by 40 hours and switch to paying at an hourly rate – and worry about overtime.
  • Convert an employee from salaried to hourly, based on actual hours worked, so the net cost is the same.
  • Convert an employee from salaried exempt to salaried nonexempt and pay overtime for excess hours.
  • Institute a fluctuating workweek where salary is for all hours worked, including overtime. +

For more information about the DOL’s Final Rule on Overtime, visit this address: https://www.dol.gov/whd/overtime/final2016/

+ SHRM Article, Device Management and the New Overtime Rule
++ 2015 Study by Center for Creative Leadership