New Overtime Laws make IT Workforce Management Crucial

The Obama administration’s landmark overtime regulation is forcing many businesses to restructure the salaries of their employees. Previously salaried employees who were exempt from overtime, such as many IT employees, will now be eligible for overtime due to the salary threshold for exemption increasing to $47,476 from the current $23,660. According to USA Today, that will make “4.2 million additional workers eligible to receive time-and-a-half wages for each hour they put in beyond 40 a week.” The new rule also defines the responsibilities that exempt white-collar employees from the overtime law, as explained by Labor Secretary Thomas Perez.

IT workforce management may become crucial for companies with IT workers below the salary threshold. As more companies move into the digital age, integrating mobile electronics, cloud services and other technology into their business model, there has been an increased need for in-house IT professionals on the payroll. As reported by CIO, we can expect industries that “previously lagged behind in technology and digital growth, like the legal field, for instance to increase their demand for IT talent as they digitize their business and work with new software and technologies.”

The new overtime law will require businesses to carefully track the hours of each employee under the threshold to be sure they are paid correctly. This will force many to take a closer look at how their IT resources are being used. Companies that provide IT workforce management, such as Kotori Technologies, along with workforce management software and applications, can be leveraged by CEOs and HR departments affected by the Department of Labor’s new law.