White Collar & Blue Collar Exempts

Ethel

The new regs are for "White collar" exemptions only. So, what about plant (blue collar) supervisors/managers, do you determine their status based on the old regs? If not, where would the regs for "blue collar" exemptions be explained?

crawfod

Fist, a brief synopsis: The FLSA generally requires covered employers to pay employees at least the federal minimum wage for all hours worked, and overtime premium pay of time-and-one-half the regular rate of pay for all hours worked over 40 in a single workweek. However, the FLSA includes a number of exemptions for "any employee employed in a bona fide executive, administrative, or professional capacity".

That being said, 29 CFR Part 541 of the DOL is the only source I know of that defines "exemptions", so your task remains unchanged. The general definition of "blue collar" is one who performs work involving repetitive operations with their hands, physical skill and energy. The latest FLSA regs have only attempted to clarify how to determine if an employer is eligible to declare an employee as Exempt.

Your post mentioned plant supervisors/managers, and these are the people who probably need defining, but it makes no difference that they provide leadership for plant workers versus the Finance Director who provides leadership for office workers. They all need to meet the same standards to be declared Exempt. I can't imagine too many plant "managers" not being exempt, but there are many "supervisors" who fall into that gray area. Remember, it is not the title that makes the difference, it is the actual duties and the fact that you pay them a set salary that fall into one of the 3 categories.

System

I think you're right, Crawfod. The regs focus on the employee's "primary duties." And despite the DOL's promise that the new rules would be clear, I can see a huge grey area for those who supervise blue-collar employees.

Here are some DOL fact sheets:
[url]http://www.dol.gov/esa/regs/compliance/whd/fairpay/main.htm#cfbcinews[/url]

James Sokolowski
HRhero.com

Ethel

I'm going to have to bore you with details so that you can help me. In our mfg plant, the plant mgr. has classified an employee as a "department manager" and exempt. Now although, what he does has been "learned" over a long period of time - it was OJT, and he may give instructions, assist, etc. the two other employees -- the fact remains that the main duties of this new manager, are the actual production of product. I have questioned this employee's Exempt designation and am being fought tooth and nail by the plant manager. He thinks that under the new regulations that this employee would qualify as a "Professional". Am I way off base on my interpretation of regs???

crawfod

Ethel, let me suggest you look at James Sokolowski's posting where he put the website for FLSA matters. At that site you can click on the "Professional" category dealing with exemptions and I think you will find clear descriptions. Then you can print that off and take it to your plant manager and see if he then feels the same. I don't think he will. From what you have described to me, I don't see it, especially if this employee is mainly performing production related duties, which sounds "blue collar" to me. I also don't see this employee fitting the other two categories of "executive" or "administrative".

Now if this person's duties will never involve working more than 40 hours per week, then your company will not likely face any future charges from the employee that he was misclassified as exempt and therefore is entitled to lost income from not being paid overtime wages. My guess is that is not the case, though, which therefore would leave your plant vulnerable to a lawsuit.

The safest approach is always to classify them as nonexempt. While it is true they are then entitled to overtime, the tradeoff is that they are not entitled to wages for missed time, whereas exempt employees fall under different rules that often require them receiving full pay even when they miss time.

Did this employee have a reaction when he was told as a new manager that he would now receive a set weekly salary as an exempt employee, but he was no longer eligible for overtime wages? Unless he got a raise that more than covered his previous overtime income and yet he is still expected to meet production quotas that require more than 40 hours work, then it won't take too long for him to be squawking.

If you still can't convince your plant manager, ask him if you can at least get a legal opinion. Good luck.

Ethel

Thanks to all who responded, I am now "learned" about this subject and I am Loaded For Bear!!! Thanks folks, appreciate the help.