FLSA Changes and Our Plan of Action

Changes to the Fair Labor Standards Act’s (FLSA) white collar exemptions are coming, and ADP Workforce Now Comprehensive Services is ready to help our clients with the compliance challenges that will follow.  Below we highlight exactly how we plan to help, including:

·        New reporting in Workforce Now (FLSA Salary Threshold and FLSA Cost Estimator worksheets);

·        New technology (Navigator OT and OT Cost Estimator apps), and

·        New FLSA Support Team.

We also highlight what you can expect next, to keep you informed every step of the way.

New! FLSA Sample Reports in Custom Reporting:

To help with assessing the financial impact of proposed changes to the FLSA’s overtime exemption threshold, two new sample reports are available in Custom Reporting:

·        FLSA Salary Threshold Worksheet: identify exempt employees whose annual salary is below the FLSA Overtime Exemption threshold.

·        FLSA Cost Comparison Worksheet: compare the cost of raising an employee’s salary above the FLSA Overtime Exemption threshold versus paying the employee overtime.

These new reports were released on May 14, 2016, and are available for use NOW.  To access sample reports, select Reports > Custom Reports > Sample Reports.  Contact your Service Team with any questions regarding these reports.

New! Technology:

We have partnered with ComplianceHR* to provide clients with two new products:

·        Navigator OT; and

·        OT Cost Estimator 

Navigator OT – Navigator OT is an online exemption analysis solution delivering expert level guidance at internet scale and speed.  With Navigator OT, clients have the ability to assess whether a particular employee or job title is likely to be considered exempt from overtime requirements under federal and state law under the most common exemptions.

After completing the easy-to-use online questionnaire, Navigator OT applies applicable federal and state exemption tests and over 1,800 reported court decisions and DOL opinion letters to provide an exemption assessment.  In addition to the assessment, Navigator OT provides expertly reasoned suggestions on how to lower the risk of misclassification.

To learn more about Navigator OT, view the following short video clips:

·        A short 10 minute video tutorial to obtain a general understanding of Navigator OT’s functionality.  Click here to access this video.

·        A 20 minute video to gain a deeper understanding of Navigator OT and tips and best practices for using the tool.  Click here to access this video.

OT Cost Estimator – This application helps clients determine the financial impact of the new salary threshold on their organization, by calculating the estimated cost of:

·        Raising an employee’s salary to meet the new minimum salary.

·        Reclassifying employees as non-exempt and paying overtime.

·        Reclassifying the employee as non-exempt, but settling the hourly rate to minimize additional labor costs (cost neutral solution).

New! Support Team:

A new FLSA Regulations Support Team has been created to assist clients with the new Navigator OT and OT Cost Estimator Solutions.  Note: The scope of the Support Team is to walk clients through the Navigator OT tool.  The team will not provide feedback on the assessment results, or on whether a position should be classified as exempt or non-exempt.

Until a direct line to the new support team is fully established you can reach the new support team by calling your existing service team’s 1-800#, or you can email the team at cs.flsa@adp.com.

What Can I Expect Next?

In the next week you will receive:

·        A Welcome Kit explaining Navigator OT, the Cost Estimator and the Login procedures (credentials sent in a subsequent email) sent to your primary HR contact via Compliance HR.

·        Welcome Kit will come from the following email address:  donotreply@neotalogic.com [Be sure to check your spam.]

·        A second email from Compliance HR (donotreply@neotalgic.com) with credentialing details. 

·        An Alert covering the final rule (which we are expecting some time this week).

·        An invitation to a client facing webinar covering the new FLSA regulations and our technology and people solutions will be sent shortly after the final rule is published.

As always, please contact your Relationship Manager or Service Team if you have any questions about the content of this Alert.