Overtime Pay

Thursday, 11 May 2017 09:02

One Step Closer to Comp Time

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Just last week, after passing the House, the Senate received the Working Families Flexibility Act of 2017.  This Act would change the Fair Labor Standards Act to allow private-sector employers the ability to offer employees the use of “Comp Time”. The public-sector (government workers) had the option of Comp Time for a long time now, which is the method of compensating employees for overtime worked through the use of additional paid time off from work instead of cash wages.

Tuesday, 11 August 2015 18:00

DOL Salary Exempt Status Changes

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Have you seen the recent proposal from the Department of Labor to change the regulations on salaried exempt employees? What would this change mean for you as an employer? This would have a large impact on the way that you determine which employees are salaried or hourly. Your employee’s exempt and non-exempt classification would potentially change which could create an increase in overtime wages paid. If accepted, the proposal would raise the salary threshold from $23,660 annually to about $50,440 annually. This proposal is projected to be finalized by the end of 2015 and in effect in 2016. How do you prepare for this change without having it impact your business? As a client of StaffScapes, we provide various services to ensure any regulatory changes minimally impact your company. 

This proposal would impact your employee wages and exempt status, which could also effect your company’s policies and procedures. StaffScapes will work with you to review and update your company’s policies and procedures in the areas of benefits, time and attendance, overtime, hours worked, wages paid to employees and more. We will also ensure that your policies are updated to include detailed descriptions of any changes in time and attendance policies and consequences for any future policy violations. Did you know that if one of your employee’s answers emails on a personal device that is considered time spent on the clock for your company? What does that mean if that employee is a non-exempt hourly employee? Look for our future blog on this topic, but call now 303-466-7864 so StaffScapes can show how we can help you ensure your company’s compliance. All of our services can be provided at a reasonable cost for your business.

Wednesday, 14 March 2007 18:00

Is Overtime Bad for Employee Health?

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The Journal of Occupational & Environmental Medicine recently tested the health and safety effects of working longer hours.

The results of a recent study conducted by the Journal of Occupational & Environmental Medicine show no evidence that overtime work produced adverse effects to the health and safety of workers.  No adverse effects were found by the study until the hours worked exceeded 60. Employees who worked over 60 hours per week did have a higher incidence rate of reporting new injuries and diagnoses, but these effects were limited by prior health, demographics and compensation type.

The study shows that prior diseases and health status have a much higher impact on safety and health than overtime hours worked.

Wednesday, 18 June 2014 18:00

New Tool for Calculating Overtime Pay

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 The U.S. Department of Labor (DOL) has released its latest Advisorto help employers and workers understand and calculate overtime pay.

One of Department’s most asked about employment laws is the Fair Labor Standards Act (FLSA). The FLSA Suite of elaws Advisors help users understand the minimum wage, overtime, and child labor provisions of the Act.  The Overtime Calculator Advisor is the latest addition to the FLSA Suite.  This new Advisor computes the amount of overtime pay due in a sample pay period based on information from the user. 

The Overtime Calculator gathers input from users about certain factors used in determining overtime, including the primary method of paying workers, any additional compensation such as bonuses, commissions, and shift differentials, and information pertaining to hours worked.  The Calculator then totals up straight-time and overtime hours worked during a sample pay period and – based on the user’s inputs – calculates the overtime pay required.  A key feature demonstrates how the calculations were made.  (The Calculator does not attempt to calculate overtime in all situations and actual pay period earnings may differ from the results provided by the Overtime Calculator.)

The Department offers many other elaws Advisors covering a wide range of federal employment laws such as the Family and Medical Leave Act and the Uniformed Services Employment and Reemployment Rights Act. To view the Advisors, visit

On June 18, 2012, the U.S. Supreme Court ruled 5-4 in favor of SmithKline Beecham Corporation in a groundbreaking FLSA overtime compensation case that will most likely affect many small businesses.  The case brought by Michael Christopher & Frank Buchanan (Christopher v. SmithKline Beecham Corporation) primarily centered around two pharmaceutical sales representatives who claimed they were owed overtime pay for their work in representing the company. 

Each individual worked about 40 hours a week in the field conducting sales calls, attending events and entertaining clients.  An estimated additional 10-20 hours were dedicated to general administrative tasks.   The court reviewed their complaint and determined that the two were highly compensated and properly classified as exempt outside salespeople. In part, the court noted that both plaintiffs were given freedom regarding their schedules and were not required to report hours.  In addition, they were subjected to very little supervision, therefore, the court ruled that the work performed met the exempt status requirements and the plaintiffs were not eligible for overtime pay.

Properly classifying employees can sometimes be confusing and we often see businesses that are improperly placing individuals on “salary” when they should actually be paid hourly or subject to overtime pay.  Governmental agencies are placing a higher level of importance on classification and are conducting audits across America.  We highly suggest conducting a review of your HR practices including how your current employees are classified.  Understanding regulations and maintaining compliance is just one way StaffScapes helps its clients.  Consider your time and risk associated with your HR practices and contact StaffScapes today to learn more about its affordable HR and payroll services.  303-466-7864 or This email address is being protected from spambots. You need JavaScript enabled to view it..