ACA, Full Time, and Overtime Oh My!
In 2015 the Supreme Court of the United States upheld the Affordable Healthcare Act. The repercussions of this, and other federal proposals, will be tough on retailers, restaurants, and small businesses, especially when it comes to complying with new labor regulations. Retailers should let technology help them comply by optimizing their stores with labor scheduling, time and attendance, and analytics solutions.
Since the Affordable Healthcare Act (ACA) was voted into law, retailers, restaurants, and small businesses of all sorts have fought for reform to a specific portion of the law regarding what constitutes a full-time employee. The law stipulates that a full-time employee is anyone who works an average of 30 hours a week. The final form of the law states that, “Under the final regulations, for purposes of determining full-time employee status, 130 hours of service in a calendar month is treated as the monthly equivalent of at least 30 hours of service per week,” according to the IRS.
This puts a huge burden on managers to be able to sift through weekly and monthly data to find out which employees are exceeding, or trending toward exceeding, the threshold of part-time vs. full-time. Managers should be out on the sales floor serving customers instead of analyzing how to allocate hours to maximize coverage while minimizing costs.
Adding on to the manager’s burden are new proposals by the Obama administration to tweak overtime rules. Under current regulations, workers making up to $455 a week are guaranteed overtime pay when they exceed 40 hours a week. Under the new proposal the administration would double the salary threshold and restrict how much non-supervisory work managers can perform to remain exempt. This is to say that if a manager needs to open a register or needs to assist a customer to increase store sales, they could lose their exempt status. These aspects of store managers pitching in to run a store can directly pay off in increased sales and a better customer experience and reflect well on the manager’s capabilities as they progress in the organization. But if the proposal passes, it could cause inefficiencies and uncertainty in-store as managers may be constrained in the types of work they are allowed to do. David French, SVP for Government Relations of the National Retail Foundation, said in a press release that the results of this proposal could be devastating:
“Any potential lift in take-home pay would be a mirage, but the consequences of this rule would be real, in terms of higher costs for businesses and less opportunity for employees to move up the career ladder from associate to manager. The overtime rules would hollow out middle-management careers and middle-class opportunities for millions of workers.”
With the ACA upheld and this overtime proposal up for a vote, retailers will need technology to work for them to help make sure they can stay in compliance – reducing fines for managers completing non-exempt tasks, avoiding overtime payments, and making sure that part-time employees don’t become full-time employees by mistake.
Reflexis provides the tools to keep costs down and make sure that your stores can comply with the newest regulations. Using Reflexis Workforce Manager™ coupled with Advanced Analytics and Reporting™, store managers will be able to track employee hours and trends to make sure that part-time employees don’t slip into the full-time category if they are not supposed to. Reflexis StorePulse® real-time store execution platform helps with complying with the proposed overtime regulation as it impacts store managers. StorePulse can throttle tasks as they come through using a role filter to make sure that any tasks that would take away managers’ exempt status are sent to other employees.
As the regulatory jungle of the US gets denser and more difficult to navigate, Retailers need technological tools to help them comply and keep costs to a minimum. Reflexis has what it takes to help your stores do that.