DATABASICS Time & Expense Blog

More Time Tracking Requirements: The New Overtime Pay Rule


On December 1st, 2016, the U.S. Department of Labor (DOL) rule change on overtime law regulations takes effect.

The salary threshold for overtime pay that’s been in place since 2004 will nearly double to $47,476. It will continue to increase every three years. Unless an employee is exempt, employees covered by the Fair Labor Standards Act (FLSA) must receive overtime pay at a rate not less than time and one-half their regular rates of pay.

In other words, any employee over the age of 16, including salaried, exempt employees, who earns under that amount will be owed overtime pay for working more than 40 hours a week. 


The rules will impact workers in several sectors. In addition to the hospitality and retail sectors, professional services firms will be significantly impacted, especially those that hire college grads in entry-level roles. Companies that hire seasonal workers also will be impacted.

The Economic Policy Institute published a detailed breakdown of sectors, regions and demographics, and what it means for workers; but this is also a good benchmark for employers. While this group is admittedly pro-labor, they’ve done their homework.

For another view, we’ve included an opinion from FOXBusiness which argues that most employers can avoid rising wages by tight tracking and compliance.

Regardless of where your sympathies lie, one thing is certain: it's absolutely imperative to track and record employees' hours properly; and investing in an automated time-and-attendance system can help employers avoid errors, penalties, and even lawsuits.

For more information, contact us or call (800) 599-0434.

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DATABASICS provides cloud-based, next generation Expense Reporting,
P-Card Management, Timesheet & Leave Management Management, and Invoice Processing automation. Specializing in meeting the most rigorous requirements, DATABASICS offers the highest level of service to its customers around the world.

DATABASICS is relied upon by leading organizations representing all the major sectors of the global economy: financial services, healthcare, manufacturing, research, retail, engineering, non-profits/NGOs, technology, federal contractors, and other sectors.

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