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New FLSA Overtime Rules Mean Employers Face Race to Comply

The U.S. Department of Labor (DOL) finalized sweeping changes to the Fair Labor Standards Act (FLSA) overtime rules extending protections to 4.2 million U.S. workers. The changes double the salary threshold for “white collar” exemptions from the current minimum of $455 per week, or $23,660 a year, to $913 per week, or $47,476 annually. The updated rules also increase the minimum salary of highly compensated employees from $100,000 per year to $134,004 per year and establish a mechanism for automatically updating the salary and compensation levels for exempt employees every three years. The final rules, which will take effect on December 1, 2016, also allow employers to use nondiscretionary bonuses and incentive payments to satisfy up to 10 percent of the new standard salary level. They do not make any changes to the duties test for executive, administrative and professional employees. Here are a few steps businesses should take now to further their compliance efforts: 1) Take Stock and Review Classifications. Employers should first ensure that they thoroughly understand...

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Best Companies for Multicultural Women Balancing Work, Life and Family

Rita Mitjans, Chief Diversity & Corporate Social Responsibility Officer

One of the reasons I am proud to work at ADP is our unwavering focus on providing a workplace that values each individual and enables associates to reach their full potential. The diverse experiences, perspectives, ideas, and backgrounds of our associates are essential in helping ADP deliver great service to our clients and maintain a competitive edge. According to the 2015 Bureau of Labor Statistics, nearly 70% of mothers of children under age 18 are working or looking for work. Given that, there’s little doubt that working moms, play a critical role in advancing our economy and our own company’s growth.  Considering the impact that women, in particular working moms, have on our business, nurturing a culture of inclusion that enables ADP to leverage the collective talent of multicultural women is not only the right thing to do, but a business imperative. ADP is honored to make the 2016 list for Working Mother Best Companies for Multicultural Women. This is a great achievement made possible by the commitment of...

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ACA Compliance: 3 Strategies For Managing Costs

This week, Forbes featured ADP contributor Liz Alton’s article “3 Strategies for Managing Your ACA Compliance Costs.” What options do employers have for controlling Affordable Care Act (ACA) compliance costs in 2016 and the years beyond? How can CHROs work with the rest of the C-suite to establish cost-reducing strategies in other departments to mitigate the effects of more stringent ACA compliance requirements? Check out the article to learn more, and join our upcoming webinar, ACA Best Practices: Why You Can’t Take a Vacation From Affordable Care Act Compliance to hear from our ACA experts. Share this:Click to email (Opens in new window)Click to share on Twitter (Opens in new window)Click to share on LinkedIn (Opens in new window)Click to share on Google+ (Opens in new window)Share on Facebook (Opens in new...

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A Marathon to 10 Million

You may have heard the phrase, “It’s a marathon, not a sprint.” That can definitely be said of the journey organizations have had in preparing for the first year of the Affordable Care Act (ACA) annual reporting. And American writer and runner Hal Higdon said, “Motivation remains key to the marathon: the motivation to begin; the motivation to continue; the motivation never to quit,” which describes the months of intense time-sensitive work and dedication needed as we were all racing towards the IRS annual reporting deadline of March 31st. In this first year, ADP assisted over 25,000 clients, ranging in size from 50 – 50,000 employees, in managing the ACA eligibility, affordability and IRS reporting for over 16 million employees, including printing and distributing more than 10 million Forms 1095-C. The Form 1095-C provides organizations with documentation they need to demonstrate they are ACA-compliant and provides key information to their employees about their health coverage. And, as a fun fact, if you stacked the 10 million Forms 1095-C ADP...

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Purple Rain…“Electric word life, it means forever and that’s a mighty long time…”

As the world mourned the loss of yet another music legend – Prince – I was struck by the outpouring of tributes worldwide.  After hearing the news, I spent a flight back home from New Jersey listening to his songs and channeling my youth.  I returned with memories from “When Doves Cry” to “Purple Rain” and spent the rest of the evening educating my children on Prince’s contributions to music and pop culture.  I celebrated his legacy, and I know he will not soon be forgotten. I’m a big believer in legacy.  We have different leaders for different times; and different leaders resonate with different people.  In a corporate setting, each leader marks a spot in time with different needs based on market conditions, the organization’s health, and client and associates’ needs. In the roles I’ve held, my goal was to build on ADP’s amazing legacy and, equally important, to add to it.  When my time ends in a role, I want to be able to look back and...

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Asia-Pacific HR Leaders Bring a Zeal for Excellence to First HR Tech China Conference

I’ve been proud to be a participant in the growth of ADP’s Asia-Pacific region since I first came here in 2013.  It’s been exciting to watch as our growth has mirrored the strides of other businesses that operate in this fascinating corner of the world. So when nearly 2,500 HR professionals met in the southern Chinese city of Zhuhai to attend the HR Technology Conference and Exposition, I couldn’t wait to discover what they considered the hottest topics in human capital management (HCM). This was the first time HR Tech, a fixture conference in the United States, was conducted in Asia.  And Zhuhai – a ferryboat ride from Hong Kong – seemed to be the ideal place to hold it.  Transformed into one of China’s first Special Economic Zones in 1980, today Zhuhai is known for modern icons of prosperity like golf resorts and theme parks – and, of course, a growing business community. China has been growing steadily for more than a decade, recently “slowing” to still rapid...

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The Not-So-Little Engine that Could: Main Street U.S.A

It chugs along 24/7, 365.  It’s Small Business America. We’re proud to support these businesses every day with not only our services but our patronage.  Every year since 1963, the President of the United States has issued a proclamation announcing National Small Business Week to recognize the contributions of America’s entrepreneurs and small business owners. ADP® is proud to once again co-sponsor this important event, which recognizes the impact of outstanding entrepreneurs, small business owners, and others from all 50 states and U.S. territories. Read a post on our Thrive blog from John Ayala, president, ADP Small Business Services to learn why celebrating small businesses is so important to him. Share this:Click to email (Opens in new window)Click to share on Twitter (Opens in new window)Click to share on LinkedIn (Opens in new window)Click to share on Google+ (Opens in new window)Share on Facebook (Opens in new...

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Are Businesses Raising Wages to Retain Workers?

Ahu Yildirmaz, Ph.D. Vice President, ADP Research Institute

We’re seeing an accelerated wage increase in the labor market for the first quarter of 2016, according to the ADP Workforce Vitality Report.  The freshly released report shows year-over-year wages grew substantially for job holders in the first quarter of 2016, rising from 4.1 percent in the previous quarter to the current 4.6 percent. This may be a signal that continued employment growth is leading to a smaller pool of available talent, in turn motivating employers to increase wages to retain experienced workers. This wage growth was evident in almost all industries and in all age groups among full-time workers.  Employers appear to be reacting to a tightening labor market by boosting wages to retain talent. Should you be more competitive with your employee compensation to retain talent? To learn more, view the full report and more information at http://workforcereport.adp.com/.   Share this:Click to email (Opens in new window)Click to share on Twitter (Opens in new window)Click to share on LinkedIn (Opens in new window)Click to share on Google+...

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Overtime Overhaul: It’s Time to Prepare Your Business for Sweeping Changes

In July 2015, the U.S. Department of Labor (DOL) proposed changes to the Fair Labor Standards Act (FLSA) that would substantially overhaul overtime pay rules. The proposed changes more than double the salary threshold that helps determine whether workers are eligible for time-and-a-half pay when working more than 40 hours per week. If finalized, these changes will make nearly five million workers eligible for overtime pay as early as this year, unless their salary is raised. In March 2016, the DOL submitted the proposal to the Office of Management and Budget (OMB) for review. The OMB could approve the rule as is or ask the DOL for changes. The final rule could be issued as early as later this month; once final, employers will likely have 60 days in which to comply. For businesses, this could be the next big compliance challenge following the Affordable Care Act.  So it’s concerning that many employers are not fully prepared to navigate the new rules. According to ADP research, only 25 percent...

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Navigating Compliance Challenges with a Professional Employer Organization

Small and midsized business owners today are faced with a host of employment-related regulations including, paid sick-leave laws, changing minimum wage, state and local regulations, and the Affordable Care Act (ACA). To say the HR landscape continues to become increasingly complex for this group of employers would be quite an understatement! In fact, the ADP Midsized Business Owners Study recently found that 41 percent of midsized employers rank the volume of government regulations as their top concern and 32 percent rank health care reform legislation as their top concern. This is part of the reason why the appeal of Professional Employer Organizations (PEO) has grown considerably over the last few years: Business owners are searching for experts who can help relieve the burden of managing their compliance risk. For example, Global Kids, Inc., a nonprofit educational organization for global learning and youth development, decided to partner with ADP TotalSource. Having recently doubled in size, Global Kids currently has more than 80 employees across two states and reaches over 14,000...

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