3 Conversation Topics on the New Overtime Law for Discussing with Customer and Prospects

As December 1st quickly approaches, more questions circulate on best practices for adjusting to the new overtime law. This is a significant change for employers, especially for organizations in manufacturing, retail, customer service and hospitality industries. In anticipation for the new overtime law changes, employers will need staffing agency services to hire contingent workers to maintain productivity while keeping their permanent employees compliant. If organizations need additional hourly employees, this presents an incredible opportunity to increase sales and generate more job orders.  

As a staffing agency, it is important to understand the changes in regulations and their potential impacts as you discuss these with customers and prospects. It is critical to remember, however, to avoid giving legal advice or anything that could be perceived as such.

Try these three key informational points and tips to help you start a conversation with your customers and prospects about the new overtime laws:

Changes to lessen its impact on your bottom line

Salaried employees making less than $47,475 annually will receive overtime compensation, but the complex details on exceptions and factors such as commission make implementing payroll changes a headache. These processes and oversights can be tedious and time-consuming, requiring flexibility and a different business approach. Businesses are having to be creative in their methods to handle this new law and to lessen its impact on their financial and staff resources. Some approaches organizations can take to deal with this law include:

Remember other job activities that are compensable

To make sure your contingent employees are paid correctly, familiarize yourself with other job-related activities that the FLSA requires compensation for.

Be prepared for an audit

With new overtime rules, companies will be closely looking at their payroll practices to ensure compliance. In the case of undergoing a Department of Labor (DOL) audit, the process may consist of extensive interviews and reviewing company wage data. If a company is found non-compliant, costly fines and a FLSA lawsuit could be potentially enacted. To decrease the chances of having a DOL audit,  an annual internal audit of your payroll  practices measured against the new regulation will be helpful.

In summary, as workforce providers, it’s important to stay educated on labor law updates to maintain compliance and to protect your agency’s reputation.  This knowledge gives you the opportunity to be seen as the go-to-resource for information. Armed with this knowledge, you and your sales team can also promote your solutions to manage these changes.

Do you know if your agency is ready to handle the changes with the new overtime law? Your ATS software should streamline complex processes, save you time and decrease compliance risks. To discuss the challenges you face with this change and to get more information about how Bond help, schedule a demo with us today!