Paychex Small Business Snapshot

Many Business Owners Remain Unaware of the DOL's Final Overtime Rule - Seite 2

The DOL estimates the rule will affect an estimated 4.2 million salaried, exempt workers who will become newly eligible for overtime pay, and an audit of Paychex's 600,000+ clients also revealed the impact of the rule will be significant. Company data indicates that more than a quarter of its clients' employees could lose their exempt status and become eligible to receive overtime as of December 1, 2016.

With the effective date fast-approaching, preparedness will be key for business owners trying to avoid potential penalties. Of those surveyed who believe they will be at least somewhat impacted, 55% say they feel "somewhat prepared" and 34% report being "very prepared." Conversely, 12% claim to not be prepared for the rule at all.

Of those surveyed who are at least partially aware of the rule, the majority (66%) feel that it will not have as great an impact on their company as other regulatory developments such as a minimum wage increase or paid sick leave law. Meanwhile, 16% believe the final overtime rule will place a financial burden on their business. Other respondents (17%) feel the final overtime rule will offer an opportunity for them to complete a wage and hour self-audit of all positions within their company.

Paychex released a similar study in April, prior to the OT rule being finalized. At that time, 1 in 5 business owners polled said they were unaware of the rule and 55% believed the OT rule would have little or no impact on their business.

For educational resources to help your business prepare for the December 1 effective date of the final overtime rule, visit www.paychex.com. In addition, Paychex offers an advanced suite of time and attendance products, including web and mobile tools, to assist businesses and employees with the scheduling, tracking, and reporting of time. Solutions such as these can assist companies with efforts to enforce their own policies and comply with applicable rules and regulations.

Note: The foregoing is provided for informational purposes only, and is not intended to be tax or legal advice. Consult your licensed attorney, accountant, or other tax professional to discuss your particular facts, circumstances, and how these opportunities might apply to your business.

About the Paychex Small Business Snapshot
Data included in the Paychex Small Business Snapshot was taken from the results of the Paychex Small Business Survey, administered by Bredin. The survey was conducted online between June 5, 2016 and June 20, 2016 and polled 313 principals of U.S. companies with fewer than 500 employees.

About Paychex
Paychex, Inc. (NASDAQ: PAYX) is a leading provider of integrated human capital management solutions for payroll, HR, retirement, and insurance services. By combining its innovative software-as-a-service technology and mobility platform with dedicated, personal service, Paychex empowers small- and medium-sized business owners to focus on the growth and management of their business. Backed by 45 years of industry expertise, Paychex serves approximately 605,000 payroll clients across more than 100 locations and pays one out of every 12 American private sector employees. Learn more about Paychex by visiting www.paychex.com, and stay connected on Twitter and LinkedIn.

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Tracy Volkmann
Paychex, Inc.
585-387-6705
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@PaychexNews