Convert full time exempt position into part time nonexpempt position - problems?

junebug · August 2003

Since installing new accounting software (and partially due to the economy) our Accounts Payable position has become a part time workload position. Even with the employee aiding others with filing etc (for which I can hire a temp for much less money) she has way too much time on her hands. I would like to make it a 3 day a week job, with pay at the same hourly rate (just fewer hours) and give her the same 3 weeks vacation, only based on 3 days a week (thus 9 days instead of 15 days).
Complicating matters is that the employee is 69 years old, and I don't want to do anything to bring a discrimination suit to my employer.

Am I headed for trouble?

Any suggestions?

Don D · August 2003

I'm wondering how your payables job got classified as exempt in the first place. But I don't see any problems with doing what you're considering. She may not be thrilled, but, your basis doesn't sound discriminatory to me.

junebug · August 2003

Thanks for your reply. I agree that she should never have been exempt. The age thing scares us, and we just want to be careful.

HRQ · August 2003

If she never should have been exempt in the first place, this would be a handy opportunity to switch her to non-exempt status. Sometimes employees feel insulted when they go from exempt to non-ex, perceive it as a kind of demotion. Just make sure somebody keeps an eye on her hours so they don't creep back up to 40/week.

HRQ · August 2003

I'm sorry - I just reread your original post and realized changing her status was your intent anyway. x:D

Don D · August 2003

Then there's always the chance that if you switch her status she will produce a multi-year record of hours worked and claim that you owe her overtime for tons of hours. DOL will buy her argument typically, depending on the credibility of her log. But, I would not worry about an age claim since you can readily produce good company business reasons for reducing the position to half time. Beware though, a manager's decision to refill the position at full time (and younger) once she's gone. That's a pretty sure winner for her.

junebug · August 2003

Thanks for the posts. It is bad morale for the other employees to see her reading a book at her desk because there is nothing she is "able" to do, due to carpal tunnel. Limiting her time will keep her from stirring up the other females in the office.

Don D · August 2003

Aha Junebug! You seem to have switched reasons in mid stream. You suddenly went from business innovations, updated computer tools and insufficient work for her to do.....to a comp related medical condition, an inability to perform certain tasks and what might appear to be the younger staff not liking the older worker. We may all have to reconsider our answers.

Pork · August 2003

JUNEBUG: DANDY DON HAS HIT IT RIGHT AND THE BALL IS HEADED OVER THE FENCE INTO THE OFFICE OF EEOC! AFTER FIRST BREAKING THE GLASS, THEY CLEAN UP THE MESS AND SEND THEIR "DIRTY DAWGS" INTO THIS MESS WHICH IS LOCATED IN YOUR OFFICE.

you best leave a "sleeping dawg at sleep" and wait out the the retirement party on her terms. I bet she is no dummy and is just waiting for your company to make the wrong move. Either that or she is dumb at this issue and could retire with an early out opportunity which could very well be cheaper than the investigation and wrong doing in the personnel arena IN YOUR OFFICE!

ONCE THE AUDITORS ARE IN THEY'LL USE YOUR BAT AND BEAT YOU AND OTHERS OVER THE HEAD. I HIGHLY RECOMMEND YOUR COMPANY SEEK COUNCIL FROM YOUR RETAINED LABOR LAW ATTORNEY AND FIGURE OUT A PLAN OF ACTION. THE TOP OF WHICH SHOULD BE AN EARLY OUT RETIREMENT PACKAGE FOR THIS SWEET LITTLE OLD LADY THAT HAS WAY TO MUCH TIME ON HER HANDS.

YOU WILL NEED MANY MORE BLESSED DAYS IN THE FUTURE! SO KEEP US POSTED ON WHAT YA'LL DO!

PORK

hrbanker · August 2003

Don and Pork are right on the mark. You simply are giving too many reasons for the reduction in hours. In a similar situation (employee was on medication and slept at his desk much of the time), we discussed his reasons for wanting to continue to work. In this case, it was for insurance benefits. We made an offer to continue his insurance until Medicare would kick in and now have a productive employee in that position.

I suggest you find out her reasons for working... Likes to keep busy? She's not doing that now, so eliminate a part time position somewhere else and give her the work to do. Needs benefits? Make it possible for her to go off of your payroll. You might be surprised. She may only WANT to work 3 days a week!

Your attorney can help you with a nice severance agreement. She gets a benefit that she is not entitled to under your policies, and you get peace of mind when she says she won't sue you. ...It's not fool proof, but a good document can certainly help. Good luck!

junebug · August 2003

Can a person even discuss an older person's possible retirement with them as you suggest without making trouble for yourself?

Also, as to giving her additional work to keep her busy, she is conveniently able to do the work associated with her job, but nearly anything else aggravates her "carpal tunnel".

I feel I have enough insubordination and incompetence items documented to just fire her, or, I could divide her work load among myself and others and just downsize. However, for her best interests, we are considering this. We just don't want to incur a lawsuit.

E Wart · August 2003

I agree with parts of all of these. I think you first need to make a decision as to what your business needs really are. (Think about if you had the best worker in the office in this position, what would you do?) Also, I recommend that you consider if you can live with this for at least 6 months-2 years. Then, if you still feel you only need a part timer in this position, which still may be the case, I would look at it as if you are eliminating the full time AP position. However, you do have a part time position available that you are willing to offer this employee. It will then be up to her as to whether or not she will accept it. (Again you may find she is delighted and this is just what she wanted.) You need to think through, what if she doesn't accept it. Are you going to pay severance? Will the job still remain a part time position (it better)? If she does accept it, have all your ducks in a row. What days and hours do you need her? Are you flexible on these? (ie. M-W-F from 8-4 or every day from 8-12, etc. or you can be flexible with her.)How will this affect her group insurance, life insurance, etc.? How will it affect her time off (vacation and holidays.)? (Normally if employees work "x" number of hours a week they may be eligible for benefits. Check your SPD's to see. Also you should have a policy on vacation and holiday pay with number of hours a week. Usually they are pro-rated based on number of hours an employee works a week. (ie. If she is normally able to earn 15 days a year as full time and she is now working 24 hours a week, she would get 24/60 or 60% of this or 9 days a year or 72 hours a year. ) Also, make sure she understand that this will be an hourly position. (This can change benefits as well as how paid.)
You still may want to run it by an attorney. However, just keep in mind that you are making a business decision that you anticipate you can live with for 2 years and you would do this no matter who is in this position. You should be safe then. Are you looking at any other areas in your off that you could make people part time or just this one position?
Good luck. It may be easier and happier than you image.
E Wart

Convert full time exempt position into part time nonexpempt position - problems?

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