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DOL's Request for Information

Back to the Drawing Board: The DOL’s Overtime Overhaul Request for Information

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The U. S. Department of Labor is taking comments on how it should move forward with overtime overhaul

Since the newest regulations to the overtime law were found invalid, employers are subject to the previous version of Fair Labor Standards Act. However, the roller coaster has not ended.

On July 26, 2017, the DOL published a Request for Information in the Federal Register, indicating it intends to attempt an overtime overhaul. Comments to the Request may be submitted until September 25, 2017. The request asks the public for a response to 11 specific questions.

We can use the questions proposed to help uncover some of the possible changes the DOL is considering. Below are five of the more telling questions and what we can infer from them.

1. Should we just update the 2004 salary level based on inflation?

The Court suggested it would be permissible if the DOL adjusted the 2004 salary level for inflation during questioning at the preliminary injunction hearing. In fact, the Court stated, “[I]f [the salary level] had been just adjusted for inflation – the 2004 figure – we wouldn’t be here today … because [the salary level] would still be operating more the way it has … as more of a floor.” This question indicates the DOL may be referencing inflation because they believe it would be acceptable with the courts

2. Should the regulations contain multiple standard salary levels? If so, how should these levels be set: by size of employer, census region, census division, state, metropolitan statistical area or some other method?

The DOL attempts to make a more malleable test here, which, of course, would serve to be more sensitive to changing demographics. However, a change like this would clearly make compliance tough for employers.

3. Should the DOL set different standard salary levels for the executive, administrative and professional exemptions as it did prior to 2004 and, if so, should there be a lower salary for executive and administrative employees as was done from 1963 until the 2004 rulemaking?

Much like the question above about multiple salary levels, this question would likely provide a more effective test. However, would it come at the cost of convoluting the analysis for employers?

4. Would a test for exemption that relies solely on the duties performed by the employee without regard to the amount of salary paid by the employer be preferable to the current standard test?

This question suggests the DOL seems to be accepting the court’s analysis that duties are more important than salary.

5. The 2016 Final Rule, for the first time, permitted non-discretionary bonuses and incentive payments (including commissions) to satisfy up to 10% of the standard salary level. Is this an appropriate limit or should the regulations feature a different percentage cap? Is the amount of the standard salary level relevant in determining whether and to what extent such bonus payments should be credited?

This question indicates the DOL may propose a version of regulations that still allows for bonuses to apply to the salary level.

Given the nature of the questions found in the Request for Information it’s clear the DOL has gone back to the drawing board and may propose something completely different from both the recent failed regulations as well as the 2004 revisions.

Disclaimer: This blog includes general information about legal issues and developments in the law. Such materials are for informational purposes only and may not reflect the most current legal developments. These informational materials are not intended, and must not be taken, as legal advice on any particular set of facts or circumstances. You need to contact a lawyer licensed in your jurisdiction for advice on specific legal problems.


Zachary Gregory

by Zachary Gregory


Author Bio: As a compliance attorney for Paycom, Zach Gregory monitors legal and regulatory changes at the state and federal levels, focusing on payroll and garnishment laws, to ensure the Paycom system is updated accordingly. He previously worked at a law firm as a tax attorney. He holds a bachelor’s degree from Oklahoma Christian University and a J.D. from Oklahoma City University. Outside of work, Gregory enjoys playing in the backyard with his two boys, and finding new restaurants with his wife and high school sweetheart, Kellyn.

talent shortage

How the Talent Shortage Threatens Your Business’s Bottom Line

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Human nature and the rapid pace of the workday sometimes conspire to force us into a myopic view of our organization. For instance, we may be so concentrated on attacking a problem within our department that we neglect to consider if the issue has infiltrated other departments as well.

If the issue is filling head count with qualified candidates, assume it has spread like a virus, to every room of every floor. Your business cannot afford to do otherwise.

While the problem is global, it is worse in the U.S., where 46% of all organizations currently experience difficulty filling open positions. Not only is that number up from 32% in 2015, it’s at its highest rate in 10 years. Experts predict it will rise even higher, meaning the war for talent just got harder.

The skills gap

The irony is, with an improving economy and an employment-to-population ratio around 82%, more people are in the American workforce now than in nearly a decade. So shouldn’t employers be inundated with résumés?

In general, they are … but not with the right kind of résumés. Almost 20% of applicants lack the experience companies seek. An equal number do not possess the necessary, specific hard skills the positions require, such as computer programming.

This skills gap has led to longer open positions. This year, the average is a full month: 31 days. Ten years ago, it took eight fewer days. How long can your business get by with letting critical functions go unfilled?

A domino effect

Arguably, the most obvious effect caused by open positions is lower morale among staff members, particularly those who have to pick up the proverbial slack. Having extra work atop their regular duties lowers their productivity, which in turn, lowers quality.

Before long, customers will take note. Perhaps they notice the product is not up to the company’s usual standard, or that your service may be lacking. Or, worse, they notice both. Either way, your competitiveness in the marketplace takes a hit, and we know the effect that has on the bottom line: not the desirable kind.

Ultimately, in a talent shortage left unaddressed, your business experiences all of the above, plus higher turnover. And higher turnover only compounds the problem that started this whole mess!

 Steps to take

The good news is, good news exists. The proper HR technology can streamline, speed up and automate your recruiting processes to attract more qualified candidates and filter out the unqualified ones. Automated preboarding helps keep new hires looped in, so they are not lost to the chasm of time between the job offer and Day 1.

The bad news is, if you don’t take such steps, and outdated, manual processes continue to rule the roost, your business will suffer defeat in the war for talent.

For more information on the current talent shortage, as well as strategic steps organizations can take on a path toward victory, download our free infographic, How the Talent Shortage Harms Your Entire Business.

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Posted in Blog, Featured, Talent Acquisition

Rod Lott

by Rod Lott


Author Bio: As Paycom’s Creative Services Manager, Rod Lott brings more than two decades of experience in marketing, advertising, branding and journalism. A published author and a graduate of the University of Oklahoma, he has worked with such brands as Blue Cross Blue Shield, Sonic Drive-In and OU.

The 1 Thing Efficient, Happy and Motivated Employees Have in Common

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Efficiency, happiness and motivation: These traits characterize the ideal employee, but how can today’s employers inspire their workforce to have more of each? Through the use of carefully chosen technology. Here’s how technology factors in to developing your employees into the best they can be.

Click here to see Jacob Morgan’s SHRM-certified on-demand webinar “How to Win the War for Talent and Crush the Competition” on how the world’s top companies are redesigning work around their people by focusing on three environments: culture, technology and the physical workspace.

Efficient employees

Of course, your employees are not machines. Efficiency for your business means employees are doing the right things at the right time; as management consultant Peter Drucker put it, “Efficiency is doing better what is already being done.” The work you hired them to do is performed with excellence.

Technology goes hand-in-hand with efficiency, and that can make your employees happier! In fact, as reported by Access Perks, 92% of employees say having the tech to efficiently do their jobs improves their overall satisfaction in their work. Employees don’t want just any technology; make sure you’re offering the latest tech that can help them perform better in their roles.

Happy employees

Whether your employees are happy can affect many things within your workplace. More than a feeling your people exhibit from 8 to 5, happiness speaks to their satisfaction in their role within your company. When your employees love what they do, that’s how you know they’re happy in their jobs.

The employee experience is the sum of all things good or bad in an employee’s time at your company. A positive employee experience leads to happier employees who are more willing to accept growth and change, and are emotionally prepared to handle the occasional setback.

Jacob Morgan, author of The Employee Experience, describes technology as a key factor in building a positive employee experience. His research shows that 81% of workers say technology is the most important factor in their happiness at work, and 86% say that when their company’s technology is ahead of the curve, they love their job. When employees love their jobs, they become more motivated for the success of the company that has invested in them.

Motivated employees

According to Forbes magazine, motivation leads to productivity, allowing for more work to get done and boosting your bottom line. Chances are, no matter the quarter, your HR team has looked for innovative ways to motivate and engage employees. Incentives, prizes and pizza parties are obvious choices in the search for employee motivation, but is a “prize” the best method?

One powerful motivator that isn’t just another prize is technology; according to PricewaterhouseCoopers, at 48%, nearly half of the American workforce says that new technology is an effective motivator. Are you providing the state-of-the-art, user-friendly tech that can motivate your workforce?

Technology that is up-to-date and simple to use can help you provide the environment your employees need to thrive.  As tech-dependent millennials make up a larger share of the workforce, and Generation Z digital natives begin their careers, technology increasingly becomes a critical part of the employee experience.  Help your employees meet their maximum potential by providing the right technology to keep them efficient, happy and motivated.

Looking for a deeper dive into the employee experience? Check out the HR Break Room podcast episode, “Happy Employees = Happy Customers: The Equation for a Winning Workforce” with author Jacob Morgan.

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Posted in Blog, Employee Experience, Featured

braeden.fair

by Braeden Fair


Author Bio: Braeden Fair produces webinars and podcasts for Paycom, in addition to writing content for the company’s blog and its employee culture magazine, Paycom Pulse. A graduate of Oklahoma Christian University, he managed social media for the college’s student life division and worked in the broadcasting departments of the Oklahoma City Thunder and the Dallas-based sports-talk radio station The Ticket.

Employer Brand

Why Your Employer Brand Matters

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Hello. My name is Amy, and at one time, my Coca-Cola rugby shirt was my most prized possession. Chances are you – or someone you know – had at least one and felt the same way. Those preppy, color-blocked beauties with the classic Coca-Cola scroll were pure Americana. They were so rad.

They were also uncomfortable. The material was thick and hot, the boxy shape was cumbersome and the collars were stiff. So what would inspire millions of sensible people to pay good money and outfit themselves in one? The answer: brand power.

Brands amplify the personal traits and characteristics of which we’re most proud. Brands show others who we are and want to be. They’re a fiercely personal association that sways our decision-making, regardless of whether we like to admit it, and they’re just as powerful today as they were in 1985.

If you don’t believe me, just embroil yourself in a debate about Macs vs. PCs, or Target vs. Walmart. Two things will happen immediately. First, regret will overwhelm you. Secondly, as voices rise and tempers flare, you’ll see that brands continue to serve as an extension of who we believe we are.

Great expectations

While the influence brands have over us remains strong, what we expect from them has changed. Today, companies can’t win customers by building a brand the old-fashioned way, with logo-emblazoned gear, slick photo shoots and ads in glossy magazines. Cultivating a trustworthy brand requires transparency. We want to know which brands mirror our values and operate in a way we believe in, too.

And we can, thanks to the internet. Now, not even the slickest ads in the world can spare brands from the destruction that negative reviews, an exposé on unethical practices or a shocking YouTube video can bring. The power of shaping a brand now lies with the company who owns it and the customers they serve.

Why it matters for HR and recruiting

So what does this have to do with your company’s reputation as an employer, aka your employer brand? Everything.

Just as consumers choose products based on brand identity, candidates choose jobs based on employer brand. Consumers want transparency. Candidates do, too. Review websites like TripAdvisor and Yelp offer consumers a forum to share honest experiences with thousands of people. Major job sites like Glassdoor, LinkedIn and Indeed provide employees a similar outlet.

And candidates pay attention. Much like consumers contemplating a big purchase, candidates planning to make a big move do research. Before applying, 62% of job seekers will use social media channels to evaluate a company and 76% will view an employee’s LinkedIn page, while 60% consider word-of-mouth to be their best source of information.

To nab today’s top talent, you must enter the conversation and cultivate your employer brand.

Isn’t that marketing’s job?

Although the similarities between the consumer brand and the employer brand would suggest it, that’s not the case. And shaping or managing your employer brand doesn’t just belong to HR, either. Because your employer brand has to portray your company’s employee experience accurately, everyone who has a hand in shaping that has a hand in cultivating the employer brand.

Download our new, FREE white paper: Discover Who Owns the Employer Brand? (Hint: It’s Not Just HR)

Once you understand the role everyone in your organization plays in cultivating the employer brand, you can begin making steps toward recruiting, hiring, onboarding and retaining the talent your business needs. Then, take some time to design an awesome (and hopefully comfortable) employer-branded shirt. Your workforce will be just dying to wear it.

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Posted in Blog, Featured, HR Management, Talent Acquisition

Amy Double

by Amy Double


Author Bio: Amy, a tenured professional in sales and marketing with over 10 years of experience, is dedicated to creating content focused on helping organizations achieve their business goals. As an experienced writer, Amy is committed to researching and blogging about topics that affect businesses across multiple industries, including manufacturing, hospitality and more. Outside of work, Amy enjoys reading, entertaining and spending time with family.

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