Opinions Please
LFernandes
314 Posts
Due to the recent impending new FLSA regulations, I'm performing a self-audit to make sure that all of the people we have classified as exempt... are. There are a few employees, however, that need to be switched to "non-exempt".
Right now we have 2 classifications of employees: "Exempt" and "Hourly".
Now my boss wants to add a 3 classification of employees: Salaried with OT because he is afraid that employees will feel that they are getting demoted (I wish I could be so lucky as to qualify as non-exempt).
I am totally against this and we are having heated debates over the subject. To me, this would just add more confusion to the issue because it would seem to the affected employee that they are "guaranteed" a "salary" instead of being paid for the "hours" they actually work which is what is going to happen. I could just hear it now when a "salaried with OT" employee works less then 40 hours.... All HELL will break loose because they weren't paid their "salary" and I will be the one who is dealing with screaming employee.
Your thoughts and opinions PLEASE. He told me to ask around to see what everyone else is doing.
Am I wrong here??? x:-/
LFernandes
Right now we have 2 classifications of employees: "Exempt" and "Hourly".
Now my boss wants to add a 3 classification of employees: Salaried with OT because he is afraid that employees will feel that they are getting demoted (I wish I could be so lucky as to qualify as non-exempt).
I am totally against this and we are having heated debates over the subject. To me, this would just add more confusion to the issue because it would seem to the affected employee that they are "guaranteed" a "salary" instead of being paid for the "hours" they actually work which is what is going to happen. I could just hear it now when a "salaried with OT" employee works less then 40 hours.... All HELL will break loose because they weren't paid their "salary" and I will be the one who is dealing with screaming employee.
Your thoughts and opinions PLEASE. He told me to ask around to see what everyone else is doing.
Am I wrong here??? x:-/
LFernandes
Comments
I have used this provision for those positions where it might be a "little gray" as to having decision making aspects of the job yet doing lots of physical activity which would classify the person/position as non-exempt. In these cases we choose to say we know this job is going to take 50 hours a week, and we are willing to pay this salary amount for you to do this job. We estimate the position will require 50 hours a week and if you get the job done in less than 50 hours then you'll still get the same salary. In otherwords develop your own efficiencies for the job and get paid for it. On those rare occasions when we exceed the 50 hours we will increase your salary to compensate for the additional hours.
You must set this up inaccordance with the provisions of 778.114 which basically is 40 hours of regular time + 10 hours of O/T added together gives you the salary to be paid every week for all ours worked in the work week at 50 hours and less. Under the new rules all salaries will have to be no less than $XXX.XX (not positive of this figure at this moment, but I believe it will be $455.00 per week)as the short test. Our three employees on this system are all over that number and when we start a new person in these positions I will have the minimum test number for sure!)
I have talked with my friend in the Fed wage and hour office here locally and his personal assessment of the new FLSA, if it gets funding from congress will have little impact on our operation with the exception of these three positions. We, apparently,will be included in the new one as an operating agriculture operation, where we were not previously. We chose to operate under the FLSA because we have to be competitive with all other commerce activities. If we did not pay O/T we would not be able to land good candidates or retain anyone for very long.
Hope this helps!
PORK
When we made the conversion of our exempt employee to non-exempt employees, we provided the impacted employees a memo of understanding about the salary being guaranteed and how the overtime rate is computed. In reality, the system discourages overtime usage since the more overtime an employee works, the lower the overtime rate becomes, and this can sometimes be a negative when we need employees to work overtime in peak times. On the other hand it can be positive when down times are worked and the employee has assurances of receiving a full “salary” for the workweek. As I understand the DOL/FLSA regs, this system of pay is not in compliance unless there are occasions that the employee does not work the full 40 hour week. From my point of view, if you can accomplish the changes you suggest, with only reclassification to an “hourly employee status” life will be much simpler. Good luck with the change – whatever it may be.
The employees will still accrue the same amount of vacation and personal time. They still pay the same amount for health insurance and are entitled to all the same benefits.
I really don't understand why he's putting up such a barrier on this one. You either get OT or you don't. It's black and white that they. I don't like grey areas, they get you into trouble.
Speaking of which, before I was hired, they were fined and got into trouble with the DOL because of improperly classified employees. You would think, once bitten, twice shy....
L
One soldier boy a hourly truck driver collected 7 paid holidays for the year in IRAQ, the soldier boy a manager colects zero for the same holiday while in IRAQ.
One soldier boy, a hourly truck driver collects sick time based on the average hours worked in a week for a year, which considers the average overtime, in his case was 48.25 hours per week. The soldier boy manager collected one 40 hour work week because there no record of hours worked for a manager and he smiles while he/she is doing it.
The same is true of the vacation weeks paid on is based on the average hours worked and the exempt is based on a 5 day work week!
EXEMPT has its advantages because they are paid for their brain power and leadership skills verses the strength of their back. I too wished I could get paid for the O/T worked, but at my preceived worth per hour for a 40 hour work week; however, I would not also want to risk the subjective bonus paid to exempt ees based on my "good looks and my quick mind"!!! I would also not wish to give up my company car, communication radio, mobile telephone, and pager for an off setting O/T. These three items alone add value to my compensation package of an additional $10,000.00 per year.
Now ya'll know why I advertise for you to eat MORE PORK, so I can bring the BACON home!
I just love this world of HR and compensation benefits!!!
PORK
It is impossible and illegal to both pay people a guaranteed salary and dock their pay.
PORK
take pride in the fact that my first un-employment hearing with my present company was opposing an X-ee who hired an attorney in our state, who now sits on the State of Mississippi Supreme Court. I single handedly whipped him in the hearing, I had the facts and he had the ees lies and his shield; it was the first time the company had ever attempted to fight an un-employment benefit when there was an attorney sitting on the other side. They don't know everything, but they make everyone believe they do just because they have a professional shield to hang.
Enough on this thread and I'm out of here, it is MID DAY FRIDAY the babies are on the floor and I here the fish calling from the deer camp lake!!!
PORK