It’s football season and some of the best games end in a nail biting OT showdown. Playing in overtime makes for an exciting game, but paying overtime isn’t near the thrill, especially in the home care industry. The revision of the Fair Labor Standards Act in 2015 was a game changer for home care agencies in terms of paying overtime. Since implementation, agencies are required to pay overtime to employees who previously had been exempt. This means that a majority of home care workers must be paid at a rate not less than one and one-half times their regular rate of pay above 40 hours of work in a workweek, according to the U.S. Department of Labor.
While there is talk that the current Congress may look to readdress the topic at some point, it is merely speculative, and to date, the legislation stands. If you are an agency that still manages employee overtime manually, you know the significant time and effort it takes to do so effectively. Continuing with the status quo costs you direct administrative time, results in paying more overtime than may be necessary, and possibly risks employee burnout.
A key defense to guard against paying overtime and staying compliant with legislation is to automate and optimize employee scheduling using the Arrow Master Schedule, part of Arrow’s Agency Management solution. Well managed scheduling, which alerts schedulers to potential overtime and allows schedule revisions before overtime occurs, provides the best care for clients, a better work environment for caregivers, and saves on the bottom line.
The Arrow Home Health Care Management System not only automates scheduling, but also includes a multicomponent system of tools and processes to:
- Maintain a thorough recordkeeping practice to ensure compliance and guard against potential challenges to pay practices.
- Fully integrate electronic time and attendance capability through a telephony timekeeping system.
- Streamline payroll by automating pay rate differentials, identifying and tracking overtime pay, and raising pay rates when necessary to comply with Living Wage and Wage Parity laws.
- Analyze scheduling and payroll practices for continued process improvement with over 100 customizable reports and robust analytics.
In today’s world, it’s necessary to keep a careful eye on scheduling and payroll in light of overtime pay protections. Contact us today if you want to further explore how Arrow can help you tackle overtime and stay abreast of the ever-changing home healthcare industry requirements. We keep up with the changing home health landscape, allowing you to spend your time best serving clients.
To learn more about the Fair Labor Standards Act, read our earlier post, Understanding Federal and State Wage & Hour Rules for Home Care Agencies.