FLSA regulations
smacfadyen
2 Posts
How are HR Professionals communicating new FLSA regulations to employees. As an example each department has to review it's current staff for exempt status changes. I would like to create a simple method for them to be able to review their staff to insure all employees are in compliance before the due date as well as explain to each department head what the changes mean to them in an uncomplicated manner. Any feedback would be greatly apreciated.
Comments
Thanks, Carole
[email]carole.owen@bgfh.com[/email]
If you have disciplinary issues with your exempts, you may want to communicate about the change dealing with 1-day unpaid suspensions.
Below is a fairly simple test for your department heads to use, but make sure you review their analysis carefully before changing an employee's status. Get an attorney's view too because this is a major decision when you mess with someone's pay.
Executive test: To be exempt as an "executive" the employee must:
1. Be compensated on a salary or fee basis of not less than $455 per week;
2. Have as his or her primary duty the management of the enterprise or a customarily recognized department or subdivision thereof;
3. Customarily and regularly direct the work of 2 or more employees;
4. Have authority to hire or fire or to make recommendations as to hiring, firing, advancement, promotion, or any other changes in status that are given particular weight.
Administrative test: To be exempt as an "administrator", the employee must:
1. Be compensated on a salary or fee basis of not less than $455 per week;
2. Have as his or her primary duty the performance of office or non-manual work directly related to the management or general business operations of the employer or the employer's customer(s);
3. Exercise discretion and independent judgment with respect to matters of significance.
Professional test: To be exempt as a "professional", the employee must:
1. Be compensated on a salary or fee basis of not less than $455 per week;
2. Have as his or her primary duty work either requiring knowledge of an advanced type in a field of science or learning customarily acquired by a prolonged course of specialized intellectual instruction, or requiring invention, imagination, originality, or talent in a recognized field of artistic or creative endeavor.
Outside sales employee test: To be exempt as an outside salesperson, the employee must:
1. Have as his or her primary duty either making sales or obtaining orders or contracts for services or for the use of facilities;
2. Customarily and regularly be engaged away from the employer's place of employment in performing such primary duties.
Sorry for the length, but this is right out of the DOL 29 CFR Part 541 regs. My philosophy is if it's questionable, then make them non-exempt, and control their overtime through good management. Exempt employees may like getting paid on a salary basis and will probably work some OT with no complaints, but one day when you need them to work all day Saturday for a special project and they don't get paid overtime because "you're an exempt employee", it won't be long before they'll be challenging your "mis-classification" and demanding back pay for other OT.