Exempt ee taking advantage of status

Paige · July 2002

Ugggh. Help me out here. Am I being petty?

We are a fairly small company (about 40 FT employees) and management here has been flexible with various leave situations, employees daily schedules, etc.

Several months ago, we stated a rule-of-thumb, unwritten "policy" in dealing with exempt employees and when to count days off as whole days off. Basically, if the person performs work for 2 hours, they are paid the whole day (if they happen to leave for the day after that 2 hours). If they perform less than 2 hours, as well as not coming in at all, they are paid with vacation or personal time hours. I know, I know--exempt employees should not based on hours--I know all the rules and regs about exempt vs. nonexempt. This was just basically so we would have something in place so we would be consistent in paying employees appropriately.

Anyway, we have an employee who is taking advantage of this rule-of-thumb and has been leaving early, with her supervisor's permission, on several occasions. The supervisor says he doesn't care because it is summer and it's a bit slower here for us. There are only a handful of us exempt employees here and myself and a couple of others are noticing this and wondering if it's fair. Do I say something to the supervisor and have it look like I'm the one who's being bothered by this? Do I let it go? If anything else were to occur that would affect employee morale amongst employees, it would get brought up.

Am I describing my dilemma very well? It's tough being the HR person in these situations.

Janet · July 2002

I'd certainly speak up now and review the rules. It's a small problem now, but believe me, it will get huge if you don't deal with it right away! We have similar problems with some supervisors wanting to be nice guys. The end result is that other EE's see this, get resentful, etc.--you know how it goes.

HS · July 2002

I would think that as long as the work is getting done, and there is no additional work that this person could be doing, then as an exempt employee, you are paid based on the job you do, not how long it takes to do it. If "summer is slow" in this particular area, how about summer hours for everyone? A reduced schedule. This way there is a consistency and fairness for all. Otherwise an evaluation of why this one person consistantly has "less work than others" may need to be done and new duties assigned.

Hope this helps and good luck.

Hatchetman · July 2002

I do think you need to get it straightened out with this supervisor: but not you - the supervisor's manager. That's the person who needs to set the expecations for the usperivsor.

As HS noted, if there is no press of work right now, then the imemdiate problem isn't there. But HR and senior management still needs to address the issue with this superivosr and with the supervisory nd management staff in general in terms of what the practice will be.

While you may not be able to legally dock salary for partial day's absences, you can deduct the time from the accrued hours benefits, as appropriate. DOL's basic position, apparently, is that accrued time benefits aren't their concern under FLSA.

And as Janet noted, it's best to get the issue stragithened out across the board for everyobdy. If senior managmeent doesn't mind the machinations this employee and the supervisor are doing now, then let them consider the issue in the light of many exempt employees and their superivsors doing it. Get the ball rolling and get it resolved, but don't do it by yourself.

WT · July 2002

How would a salary review come into this? If you do such a review it is a useful tool. In this case, the supervisor should be informed that if things are so slow that two hours a day is sufficient to get work done that there is some question as to whether the employee is needed. Further, it should be reflected on the individual's review and on the supervisor's review. In the first case it would be lack of any extra effort and in the second case, it would be poor or wasteful use of resources to let an employee consistently take time off by working a short day.

Dip into the supervisors pocketbook and that Santa Claus syndrome will dry right up.

Carol CA · July 2002

Perhaps summer isn't busy, but another time of year is? Sometimes these things all work out in the end and come later on all of you will be leaving on time and this person will be staying late. Or if things are slow in that department, is there work they can do in other areas to help out? I would have a conversation with the supervisor letting them know the leaving early is causing grumbling with the other exempt employees and see what you can work out.

Don D · July 2002

Paige: x:-) You've pretty much described a very loose ship. So, I wouldn't be surprised that the lower deck is 3 inches in water and the rudder is about to fall off. You have one heck of a dilemma if you expect to be able to maintain consistency when the company has: (1) Rules of thumb, (2) 'Soft' application of FLSA policy, (3) An owner who has decided to be overly generous to the extreme, (4) supervisors who do what they want to in spite of the company's unwritten rule of thumb, and (5) relaxed expectations during hot summer months when things are slow. About all I can suggest to help you decide if you should go sit down with the boss is to flip a coin. It probably won't much matter one way or the other as I read your post.

Crout · July 2002

Paige, I agree with Don in that I don't see why you guys can't just follow the "rules and regs" as spelled out in the FLSA. Secondly, are you acting in the best interest of your company, or are you acting on your own personal agenda? If you honestly think that your intervention would be for the good of the company, then by all means take action. If not, then I would suggest that the professional thing to do would be to rise above it and carry on. Take care.

Rockie · July 2002

Basically, in our organization, if an exempt employee works any part of a day, they are not docked anything....salary, PTO, etc. Most of our exempts work more than 40 hours, so this is not a problem. We have had, on occasion, a couple of exempts who have tried to take advantage of this situation (ex. - they drop by on their first day of vacation (on the wa out of town with hubby and kids in tow) for an hour or so to "take care" of something and they try to count this day as a work day vs a PTO day). This is called to the attention of the manager and the employee is counseled about trying to work the system, which is what this is. If an exempt is out an entire day, they use PTO for it.

Since most of our exempt employees give much more of their time than a typical full time employee,(and don't get overtime), we don't feel it's appropriate to dock for partial PTO days.

I, too, believe the supervisor of the employee should address this problem. And again, like Carol pointed out, it may be slow now, but it may be that the employee might have to work 50 hour weeks on occasion, so..it does even out for the most part.

JeannieS · July 2002

Does this exempt employee who is consistently leaving early work extra hours when it gets busy in his/her area? If that is the case, then it probably is fair for him/her to take advantage of the slow times.

Paige · July 2002

It's great hearing all your responses. One point to clarify--this individual is out the door at 4:30 every day (other than when she leaves earlier). So the point about it all "evening out" in the end does not apply with this person.

Anyway, I basically made a comment to the supervisor--"Gee, wish you were my boss," in a light-hearted way.

I may still try touching base with our CEO (my supervisor as well as the supervisor to the supervisor of this problem individual) and find out what kind of culture he prefers. One of some risk-taking allowing for some flexibility and issues with employee morale or would he prefer more by-the-book type of environment.

Thanks, again.

Exempt ee taking advantage of status

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