Act Now for the Dec 1 FLSA Changes

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From the PlanSource HCM Team
You are surely aware of the new regulations regarding the classification of “exempt” employees going into effect (if not, check our our blog post from earlier this summer!). Effective December 1, 2016, full-time salary workers must make at least $913 per week. Up to 10% of the salary may be made up of incentive pay, non-discretionary bonuses and commissions if paid at least quarterly. How are you handling the change?

We recommend taking the following actions in the PlanSource System for employees who are being reclassified as non-exempt:

  • Add new Job Codes for the reclassified non-exempt employee under System Configuration > Business Rules > Jobs
  • Request new Earning Codes as required for Non-Exempt employees
  • Request new Earning Group for reclassified employees (required if you have requested a new regular earning code)
  • Review and update PTO policies as needed
  • Change the employees’ job codes and earning groups using the additions above (thus creating a new job history record with a 12/1 effective date for a record of making the required changes.)
  • Update Auto-paid and Salary/Hourly flags on the employees’ records
  • Ensure the newly non-exempt employees are set up to be added to your time keeping system. (If you use HCM’s Time and Attendance, please request this update through

Leverage the Tools Available
Educate yourself on the changes, the available options for compliance, and the impact they will have on your business. Here are some useful tools to help you through this process:
* PlanSource HCM System Checklist 

* Department of Labor website 

* Department of Labor Video (excellent communication tool for all affected parties)

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