FLSA Upcoming changes

crawfod

I'm sure we're all anxiously awaiting the FLSA amendments regarding exempt and non-exempt employees, and there have been numerous stories out there as to what might happen.

In anticipation of change, one thing I did was to look at the overtime being paid to office employees who we currently defined as non-exempt, and fortunately for us there really is not a big problem or expense. (To me, overtime is within management's control and discretion.)

But suppose an employee is used to getting around $1,000 a year in OT, and the new laws give us the right to now declare that employee as exempt, thus eliminating that $1,000. What is the answer to the employee's subsequent request for their position to be reclassified to a higher pay grade, thus offsetting their loss of the $1,000? My personal feeling is that overtime income has nothing to do with how a job is classified, unless there was a special skill needed for a task that could only be done on overtime hours, but I'm average when it comes to pay grade studies and such matters, and I would be interested in hearing from those of you with more knowledge. I guess one more way of wording my interest is, "On what basis would there be logic in upgrading a position when the main reason would be due simply to a loss of overtime income?" Thanks.

Don D

Good question. I look at it sort of like I look at the employee who says, "I really do need an increase. I work hard and I get good reviews and I really have tons of bills and I'm working another job part time, and my wife is unable to work and on and on". We cannot make such decisions based on the emotional piece of the puzzle. In both cases I feel that the employee's appeal may be, to him, logical. But to base a response on that, I think would be an emotional reaction, not a proper business decision.

Brad Forrister

I think I'd look at it a little differently. You're not only saying the employee will no longer get overtime. You're also saying the employee is now recognized as having a higher level of responsibility. I wouldn't get locked into letting the amount of overtime be determinative of the raise. But I'd at least consider giving a raise.

Brad Forrister
Director of Publishing
M. Lee Smith Publishers

Rockie

[font size="1" color="#FF0000"]LAST EDITED ON 04-16-04 AT 01:32PM (CST)[/font][br][br]I agree, but in the opposite scenario where you have an exempt employee who you will reclassify as salaried, you need to take a hard look at whether they were misclassified all along.

I believe the change in law will require that you examine whether you will need to go back and pay them overtime for the time they were classified as exempt. I hope I may have misinterpreted this, but it appears this is what will happen.
How do you guys interpet this?

I have an administrative person that will probably need to be reclassified as non-exempt, but, thankfully, she works very little overtime.

OOPS! I should have said an exempt employee who will be reclassified as hourly. Sorry I have spring fever. It is sunny and 75 degrees outside. Time to go home......