Round Nonexempt Hours Correctly

Work-Time Calculations: Rules on Rounding Hours Q&A
“Rounding” is generally accepted under the FLSA, but only as long as the rounding practices “average out” and nonexempt employees are paid properly for hours worked. Find out how to implement this practice in your workplace.

FLSA Exemptions Explained

FLSA Series Part 1: Exempt or Non-Exempt Classifications
This is the first of a series of articles explaining the Fair Labor Standards Act, FLSA, or the Wage and Hour Law. It is the FLSA that defines at the federal level the distinction between exempt and non-exempt employees. Non-exempt employees are covered by the FLSA rules while exempt employees are not. Exempt employees are exempt from being paid for over time worked and are instead expected to perform their required work, regardless of the time needed to do it.

FLSA Administrative Exemption

Complying with the FLSA Administrative Exemption Q&AAre you in compliance with the FLSA administrative exemption regulations? Find out if your administrative assistants meet these very specific criteria.Q: We have an employee whose title is administrative assistant to the CEO. She is essential to the CEO and often works more than 40 hours a week. She is paid overtime as a nonexempt employee, but we are wondering if her job duties meet the criteria for the administrative exemption. What are the criteria?

Absences for Exempt Workers

Exempt Employees and Partial Day Absences One issue that comes up continually for employers is how to deal with exempt employees who take time off in less than full day increments.  The Fair Labor Standards Act (FLSA) regulations make it clear that employers generally cannot dock their exempt employees pay for absences of less than

FLSA – Exempt Employee Guidelines

Guidelines for Managing Exempt-Status EmployeesIn the world of HR, one area that has produced a significant quantity of writing, thought, and opinion is that of employee exemptions within the Fair Labor Standards Act (FLSA). This area, however, is not particularly flashy or trendy. In fact, it is the boring material that HR professionals must learn and internalize in order to add value to their organizations.  But, while not flashy, this knowledge area is one where millions of dollars can be saved by sound HR practices.

MarketPay Jobs: An Unparalleled Solution

Accurate job descriptions can serve as a key document in developing a fair and equitable work environment. A job description is a technical document that acts as the backbone and infrastructure of how to do a job well. It covers competencies, abilities, requirements, and is a compliance driven document that informs compensation. To produce effective job descriptions, you need to be

Definitions of Employee Classification

Employees usually are classified according to the hours worked and the expected duration of the job. Accordingly, they generally fall into three major categories: full-time, part-time, and temporary employees.

Compensation: What Does it Mean? What are the Types?

Understanding the different types of compensation is essential if you are a compensation specialist, HR leader, payroll specialist, business owner or manager. Businesses are legally responsible for compensating workers for their labor, of course, but you are also responsible for explaining compensation to candidates and employees. This is particularly critical during the hiring process, performance

How to Find the Right Competitive Set to Price Your Jobs

We hear some variation of this statement from clients every day: “We want to make sure we’re offering competitive pay in our market.” What does being “competitive” actually mean? Many HR and compensation professionals would say that being competitive means paying, on average, plus or minus 10 percent from the market average pay for a

How to Make the Most of Your HR Budget and Staff in 2019

As we’re finishing up 2018, we decided to gather a few HR leaders to discuss the broad range of HR initiatives they’re thinking about for 2019 and how these are aligned with their company goals. The panel was moderated by Katie Miller, Marketing Specialist at BizLibrary. Featured speakers included Cassie Whitlock (Director of HR at

Variable Pay: Who Gets It, What Types and Why?

Editor’s note: This blog post is an excerpt of our new whitepaper Variable Pay Playbook. In a tight talent market, where employees have choices about where they commit their time and talent, variable pay is frequently used as a retention, recruitment and motivation tool. PayScale’s 2018 Compensation Best Practices Report (CBPR) reports that nearly three-quarters

Employee Rewards: From Most Popular to Most Creative

Today’s employees have some unique advantages that employees of the past didn’t have. For one thing, the U.S. economy is relatively stable, and the unemployment rate continues to decline steadily overall at 5 percent or lower for over a year now. Lots of companies are hiring, and many workers have far more opportunity than they

Top 16 Compensation Blog Posts from 2016 (Part Two)

Yesterday we counted down the first half of the top 16 most viewed compensation blog posts from 2016. Without further ado, here are the rest! #8: Are Promotions Leaving Your Employees Feeling Short Changed? Have you ever given an employee a promotion and a raise and their face falls? In the eighth top post from

Minimum Wage Is Going Up. Now What?

HR professionals nationwide are still reeling from the recent injunction against the Department of Labor’s overtime rule, which had it gone through, would have required companies to compensate all salaried exempt workers a minimum of $47,476 by December 1st. While the news has been dominated by the implications of the injunction, let’s not forget about

The Proposed FLSA Change has Already Affected Salaries

The Department of Labor’s proposed changes to the FLSA overtime exemption rule might have been delayed, but the data show the new threshold might have already had a substantial effect on salaries. We looked at salaried jobs that frequently fell between the two thresholds and observed a remarkable amount of change in the past six

New PayScale Data Shows Companies Complying with Proposed FLSA Changes Anyway

This FLSA stuff is getting convoluted. There’s the FLSA, which is confusing in itself; the proposed changes to the overtime rules originally slated for 12/1; the court-issued injunction to the FLSA changes; and the appeal of the injunction by the Department of Labor. Amidst the ambiguity of official FLSA activity, many organizations have already been

One Company’s Ride on the FLSA Coaster

I’ll be honest, I cried a little bit when I got the news that the FLSA changes were postponed. As the Director of Total Rewards for Associa, a PayScale customer, I’ve been working on the changes – analyzing, assessing, recommending, and communicating the implications – since March. Just as I was starting to see a

FLSA Stories: It’s Starting to Get Real

Companies are starting to implement changes in anticipation of the FLSA changes happening on December 1st. While there are still some efforts to delay under way, it’s unlikely that the changes will be prevented from happening. The more uncertain thing is whether the Trump administration is likely to keep, or work to reverse, the changes.

Should We Wait to Comply with the FLSA?

Many clients ask: Should we wait until the upcoming presidential election to comply with the FLSA? The short answer is:  No. Since the new regulations are effective on December 1, 2016, you really can’t wait to comply with them. Let’s dig a little deeper into the timing of the election, the effective date, and the

#Compference16 Most Tweetable Moments

#Compference16 was engaging, informative, and social – both live and online. Our hashtag even became one of the top trending hashtags in Seattle. Comp and HR professionals are definitely social people. While we’d like to highlight every single session and every single tweet, because they were all amazing, we have to maintain some of the mystery of

Putting people back in the center of the increase process

HR is in a tricky spot. Professionals in HR are often responsible for both compliance, protecting the organization from legal problems, and organizational culture, creating a place where people want to stay and contribute their best efforts. I get it, having been there myself. The anxiety and cost of a lawsuit are no joking matter.

You’re Underpaying. Now What?

Jenni Marquez, CCP, PayScale Compensation ProfessionalMost organizations don’t intend to pay employees low, but market shifts and legislation changes can often result in underpaid employees. If budget is tight and you’re concerned about how to tackle the problem without giving your CFO a panic attack, don’t fret. We’ve got you covered with some things to consider and tips on how to address the situation.

Communicating the U.S. FLSA Changes to Employees

Mykkah Herner, MA, CCP, Modern Compensation Evangelist, PayScaleIf your social media threads look anything like mine, they’re blowing up with information related to the FLSA changes. Most include an overview of the changes and some are more in depth than others. In last week’s article, we identified some considerations for making changes. SHRM’s article explores issues around company property, media policies, and travel. Once you’ve decided what you plan to do to accommodate the FLSA changes, it’s time to start talking to your employees.

3 Things You Need to Know about the New FLSA Overtime Rules

Kate Jesse, Payroll Administrator, PayScale and Mykkah Herner, MA, CCP, Modern Compensation Evangelist, PayScaleThe US Dept. of Labor released the final new rules on Fair Labor Standards Act (FLSA) overtime standards today. The much anticipated ruling has been a buzz amongst HR professionals since the draft was released almost a year ago. While many of us have been talking about it behind closed doors, now that the ruling is official, it’s making a much more public splash on the Today Show and NPR, to name a few. In many cases, employees are learning about the ruling from the media first. Given that, we’ve put together the cliff notes version of the ruling, as well as what to look out for as you begin to ensure compliance* in your organization.

Seasonal Hiring Steady for 2015 Holiday Season, but is Pay Spiraling Downward?

Tess C. Taylor, PHR, SHRM-CP, PayScale Senior BloggerThis time of year always sees an increase in hiring additional people to cover the busy holiday season, at least on a temporary basis. It can be a good time to earn a little extra cash for gifts and starting the New Year right by paying off debts. But, a recent survey indicated that while employers expect to hire a similar number of seasonal workers, the pay rates for these temporary employees may be decreasing.

PayScale Tools for Today’s Comp Pro! Comp Glossary: Part 1 of 4

Jenni Marquez, CCP, PayScale Compensation ProfessionalEven the most seasoned HR professional might take a big gulp if approached by their CEO to take charge of anything comp. That’s because, despite being part of the HR department, compensation is like the cool kid at a party. You know, the one you’re afraid to talk to. A bit mysterious, intriguing, and frankly, just seems way out of your league. Comp has its own language. Sure, you’ve heard some terms before, but you have no idea what they mean so you try to avoid the conversation altogether. Not to worry! PayScale has you covered in our new, 4-part Comp Glossary. You’ll be ‘comp’letely fluent in no time.

Wage theft — the employer oops that’s got workers fired up

Tessara Smith,  PayScale There is a compensation epidemic taking over companies across the nation. It is called wage theft and your organization should avoid it at all costs. By definition, wage theft is the underpayment for money that has been clearly earned. This could mean paying employees less than minimum wage, refusing to compensate them for the hours they have worked, or neglecting to pay them overtime. You would think that most companies would stray from committing such a petty compensation crime, but wage theft is much more common than you think. It makes sense; the less you pay employees the more your company profits when you crunch the numbers at the end of the day. But is raking in more revenue worth causing your employees to be disgruntled or the massive penalties you might face if they decide to band together and file a lawsuit? 

How does the changing minimum wage affect your compensation strategy?

Mykkah Herner, M.A., CCP, PayScale There has been a lot of talk about increasing the minimum wage, at the federal, state, and city levels. In Seattle, headquarters of PayScale, we just passed an ordinance increasing the minimum wage to $15/hour within 3-7 years depending on employer size. Of course there has been debate on both sides of the law. Can small business owners afford to absorb the increase? What will happen to the people we used to pay at $15/hour? But also, how can Seattle call itself a forward-thinking city if the minimum wage is not a livable wage? I probably should have been born a Libra because I fundamentally understand both sides.

Payroll oops! FLSA mistakes managers make when calculating overtime

As if calculating overtime pay wasn’t challenging enough at times, the Fair Labor Standards Act (FLSA) can throw even a seasoned payroll manager into a tailspin at 300 miles per hour. Why do FLSA mistakes cause so many issues for payroll overtime processing? In this article, we will look at some ways you can avoid the common issues with managing overtime payments in regards to FLSA guidelines.

Celebrate the smart way: Office party dos and don’ts

Crystal Spraggins, SPHR Well waddaya know? ‘Tis the season again. Pretty soon boxes of cookies, candies, and cheese assortments will be coming through the door—gifts from your vendors and also a reminder to everyone that party time is near! You’ve got a workplace celebration planned, of course, because it’s a tradition. When it comes to party particulars, however, here are a few other traditions you might want to get rid of this year.