Exempt Status/payroll - losing my mind.
Pacer
3 Posts
Hi, I'm new to the forum. I am a librarian who became an HR manager 5 years ago when the public library needed an HR person and didn't have the money to hire one. At that time we doubled our staff in a month. We currently have 101 employees, 1 main library, 8 branches,a bookmobile, myriad problems and a director who's looking at retirement. My major role now is to keep us out of court. So far I've beeen successful, but the new FLSA exempt rulings may do us in.
Here's the problem(s): Our labor attorney just decreed that all our librarians, including Department Heads were NOT exempt! Since we are small enough for the director to know everyone, their reccomendations regarding hiring/firing, etc. don't carry "particular" weight. We meet the salary criteria, and the advanced degree criteria (all have Master's degrees) We depend heavily on their exempt status to run the library with a minimum number of non-exempt employees. It also complicates our payroll tremendously because we pay semi-monthly on a salried basis...and pay up to the actual payday. (we don't hold back any time) I know, I've tried to get this changed. There is NO software that will project pay. Since paychecks have to be generated in time to be signed by a board member and distributed, we often project pay 2-3 days, or even a week! We currently pay 40 hours for a 37.5 hour work schedule and NEVER pay overtime. The county is talking about changing to 37.5 hours worked and 37.5 hours paid. We'll have to deal with overtime...on a system that is set up for salaries???? We really need to convert to every other week and hold back a pay-period. I'm in WAY over my head. Any help, guidance or prayers would be greatly appreciated! I've already suggested they hire a REAL HR person.
Here's the problem(s): Our labor attorney just decreed that all our librarians, including Department Heads were NOT exempt! Since we are small enough for the director to know everyone, their reccomendations regarding hiring/firing, etc. don't carry "particular" weight. We meet the salary criteria, and the advanced degree criteria (all have Master's degrees) We depend heavily on their exempt status to run the library with a minimum number of non-exempt employees. It also complicates our payroll tremendously because we pay semi-monthly on a salried basis...and pay up to the actual payday. (we don't hold back any time) I know, I've tried to get this changed. There is NO software that will project pay. Since paychecks have to be generated in time to be signed by a board member and distributed, we often project pay 2-3 days, or even a week! We currently pay 40 hours for a 37.5 hour work schedule and NEVER pay overtime. The county is talking about changing to 37.5 hours worked and 37.5 hours paid. We'll have to deal with overtime...on a system that is set up for salaries???? We really need to convert to every other week and hold back a pay-period. I'm in WAY over my head. Any help, guidance or prayers would be greatly appreciated! I've already suggested they hire a REAL HR person.
Comments
You can pay non-exempt twice a month, but the stub periods (the beginning and end of the week) will need to be compared for OT purposes. And you can pay non-exempt staff a salary, you do have to track the OT as previosly discussed.
You have valid concerns about your pay periods, but it is ok to make adjustments in the following pay periods. I would recommend you draft a policy that describes this so all EEs will know that is how you handle that.
Now, take a deep breath - this can all be handled. You can make the recommendations you suggest, but garner support from your direct report - share your concerns and logistical nightmares with them and see what happens.
Good luck.
[url]www.dol.gov/dol/allcfr/ESA/Title_29/Part_541/toc.htm[/url]
You mentioned you do have an attorney who hopefully could sit down with you and go over the major issues and explain his/her reasoning. Understand too that job titles or degrees alone are insufficient to establish the exempt status of an employee. Salary and actual job duties (a job description duty that is not actually performed doesn't count) are the keys.
The starting place for consideration of EXEMPT AND NON-EXEMPT is the weekly minimum of $455.00 gross. Anyone not making that amount in gross pay is non-exempt regarless of their job task, yours included.
Next is the physical list of task performed by these individuals. Basically, if one does 80 to 90 percent of their functions using their mind instead of their fingers, you could be looking at a "learned professional" who very possibily could be EXEMPT and salaried. This is not referencing a job description, it is a physical list of activities expected to be accomplished by a person on behalf of the organization. It is this list of activities that one can then develop a "job description".
I look forward to reading more post as this situation comes along to us. Your day has been Blessed for you have found the library that will respond to your issues and help you to understand and provide you with the swords to fight off the world crashing down upon you. we are here to help and we love to do it!
PORK