FLSA ONEMINT Overview

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Changes to the Fair Labor Standards Act

Customer Presentation

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Legal Disclaimer• The information provided herein is confidential. All product information is being provided for

informational purposes only, and any product information pertaining to functionality that is not currently available (“forward-looking product information”) is provided as a general outline of the future direction of our products, and, as such, is subject to change. Any forward-looking product information is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The adoption, development and timing of release of any feature or functionality described in any forward-looking product information set forth herein remain at all times at the sole discretion of our licensors.

• All information pertaining to the any legal requirement discussed herein is provided for informational purposes only and not for the purpose of providing legal advice. The application of specific laws, regulations or court decisions may affect certain organizations in a manner that is materially different than as discussed or contemplated herein, and, therefore, the application of any specific law, regulation or court decision should be reviewed carefully with a qualified attorney.

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Executive Summary• Situation:

− FLSA changes will impact an organization’s workforce management strategy− Organizations need to balance business needs, compliance risk, productivity, and

labor costs when building their workforce strategy

• Complication:− Compliance and productivity challenges with manual workforce management

environments

• Resolution:− We can help organizations optimize their workforce, minimize compliance risk,

improve productivity and reduce labor costs


FLSA Overtime Changes FinalizedToday December 1, 2016

If an employee earns less than

$455 per week or $23,600 annually

$913 per week or $47,476 annually

Then They are eligible for overtime pay

They are eligible for overtime pay

Employees who make up to $47,476 per year will be eligible for overtime.

Effective date: December 1, 2016Automatic salary threshold increase every three years

!


FLSA Compliance TimelineDOL EXEMPTION RULE CHANGE

321

Cross-Functional Team• HR, Finance, Operations, IT, Legal

Impact Assessment• Analyze salary

& staffing• Determine impact for workforce

& operations

Strategy• Who gets greater salary levels• Reclass to nonexempt Status• Jobs & operations restructuring

ImplementationSystem Assessment

• Assess impact to your HCM system • Design changes• Create implementation plan & budget

Configure• Make system changes• Unit test changes• Support users acceptance & go live

June-July

August-September

October-November

Effective Dec 1FLSARequirements

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Business Impact and Strategy



321




& operations





June-July

August-September

October-November



Create a Cross-Functional Team to Define Your Strategy

CrossFunctional

Team

Finance & IT

HR Leadership

Operations/Business

Units

LegalExecutive

Team

Do you understand the details of the regulation?Who is impacted? How many hours do these employees currently work?What is the budget impact?How will you track the time of the impacted employees? What is the impact to your human capital management (HCM) system?

What is Your Strategy?

Pay overtime? At what rate?Increase salaries?Reduce hours?Hire more employees? Full-time or part-time?What is the impact to your business metrics?


WorkforceONE™ Management Strategy

LABOR COST

COMPLIANCE PRODUCTIVITY

ENGAGEMENT

RECRUITMENT

BUSINESS GOALS TALENT

UNION RULES


Potential Unintended ConsequencesThe Workforce Institute

• 81% of employees work outside of standard hours

• 63% of full-time salaried employees admit they would work off the clock, even if it’s against policies

• Causes:− Long-term career goals− Urgent deadlines− Too much work− Always connected = always working


How does it all play out?

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Mark, the Assistant Manager• Manages 20 hourly workers, works 60 hours/week

• Salary: $39,500 per year (unburdened)

• Options:− Increase salary to $47,450 and he continues to work 60 hours

per week

− Pay him overtime. New yearly compensation is $69,125

− Reduce his hours to keep him close to $39,500. • Hire part time worker for 20 hours a week at annual cost of $19,700

• Organization decides to increase his salary to $47,450 and not adjust his hours− Potential impact on retention and engagement?

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Kate, the Supervisor• Manages 10 hourly workers, works 45 hours per week

• Salary: $39,500 per year

• Options:− Increase salary to $47,450 and she continues to work 45 hours per

week

− Pay her overtime. New yearly compensation is $46,906

− Reduce her hours to keep her close to $39,500.

• Organization decides to keep her salary and pay her overtime. Try to limit her hours to 40 per week.

• Strategy:− Evaluate employee by employee or by job classifications?

− Consistency and impacts on engagement and recruitment?


ONEMINT™ Success Strategy



321




& operations





June-July

August-September

October-November



ONEMINT™ Success Strategy

Adjust employees and rules

Optimize schedules

Manage overtime

Audit and report


Adjust Employees and Rules

• Ease administration simply and efficiently through the use of employee profiles− Adjust employees to non-exempt− Update pay rules for employees− Calculate new overtime rates

Effectively manage, monitor, and adjust.

• Increase salary for Mark• Adjust Kate to Non Exempt• Adjust pay rules for Kate


Optimize Schedules

• Build a best-fit schedule, automatically − Business needs− Compliance− Employee requirements

• Flag potential compliance issues proactively

Build the best-fit schedule based on the overall business and compliance strategy.

– Union regulations– FLSA / ACA

• Build rules to keep Kate at 40 hours per week in schedule


Manage Overtime – Anywhere• Automate and interpret time calculations centrally

• Receive notifications of potential compliance issues

• Capture time including remote work, travel, meal, and breaks via mobile

• Enable employees to attest to time

• Automate time from punch to payroll

Simplify the administration and enforcement of policies.


Audit and Report – Better Insight

• Audit all actions

• Historical and real-time reports enable managers to proactively manage overtime

• Dashboards provide insight into overtime trends

Understand when employees are projected to cross overtime thresholds.


What Should You Do Right Now?

• Form Cross Functional Team to develop business strategy

• Understand impact− Determine employees impacted− Immediately start to track hours worked to allow you to evaluate options for

changes to the business and workforce strategy

• Take action− Finalize policy and communicate changes to the organization− Change Human Capital Management systems to support compliance


ONEMINT™ Service Offerings


System Expert

• Our Human Capital ManageMINT (HCM) solutions and service offerings are compliance enablers for your organization:

CustomerDefine Compliance

Strategy andImplement FLSA

Policy

UsProvide Solutions and

Services to Enable FLSA Compliance

We do not endorse or recommend any specific compliance strategy


Additional Resources


Resources

• http://www.flsa.com/coverage.html

• https://www.dol.gov/whd/overtime/final2016/

• https://www.shrm.org/legalissues/federalresources/pages/flsa-overtime-rule-infographic.aspx

• http://blog.dol.gov/2016/05/18/plenty-of-options-with-new-overtime-rule/

• How Does the New Overtime Rule Affect Your Mobile Device Policy?

http://www.flsa.com/coverage.html

https://www.dol.gov/whd/overtime/final2016/

https://www.shrm.org/legalissues/federalresources/pages/flsa-overtime-rule-infographic.aspx

https://www.shrm.org/legalissues/federalresources/pages/flsa-overtime-rule-infographic.aspx

http://blog.dol.gov/2016/05/18/plenty-of-options-with-new-overtime-rule/

http://links.shrm.mkt6744.com/ctt?kn=39&ms=MjU1NjgzNDIS1&r=ODM1OTI1ODc3NDES1&b=0&j=ODAzNzYxMTQzS0&mt=1&rt=0

Recruiting & HR

FLSA ONEMINT Overview