A Q&A with Matt Zelek, VP and Industry Consultant, Empower Software Solutions
Let’s not assume that all retailers are completely knowledgeable with the FLSA’s new guidelines. Are there any important points retailers should know that may be buried in the Act’s language?
The proposed changes to the Fair Labor Standards Act are aimed at revising the rules associated with overtime hours for salaried employees. This would make those who earn $50,440 a year or below eligible for time-and-a-half pay when they log more than 40 hours a week. Since many retailers rely on hourly associates to fill the majority of positions across their store locations, the FLSA guidelines would most likely affect salaried management positions.
While there are no hidden secrets in the FLSA language, the revisions could force the need for some important considerations in order to control costs, depending on the size of a retailer’s management staff and available budget. At the very least, companies with salaried staff under the $50,440 threshold will need to implement an accurate way to track time and attendance for these people so that their hours can be monitored and appropriate overtime compensation paid out as needed. From there it’s about strategy. Some companies may find it more cost-effective to convert all salaried employees to hourly, or even give employees within a certain range of the cap a raise that pushes them over, therefore taking overtime out of the equation.
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