Converting from Exempt to Non-Exempt

JEP123

We have had extensive meetings with our lawyer and determined that a few of our positions need to be re-classified from exempt to non-exempt.  I am currently working on a training for supervisors and one for employees to explain the rules of the FLSA and our state wage and hour rules.  My biggest concern is framing the change so that employees do not perceive this as a "demotion" or a reflection on their professional work.  Any suggestions would be greatly appreciated as I need to do the training starting on Tuesday!  

TXHRGuy

[quote user="JEP123"]We have had extensive meetings with our lawyer and determined that a few of our positions need to be re-classified from exempt to non-exempt.  I am currently working on a training for supervisors and one for employees to explain the rules of the FLSA and our state wage and hour rules.  My biggest concern is framing the change so that employees do not perceive this as a "demotion" or a reflection on their professional work.  Any suggestions would be greatly appreciated as I need to do the training starting on Tuesday!  [/quote]

 

Normally, the sense of "having made it" comes from getting away from the time clock.  If these people can use sign sheets or something like that where they don't have to suffer the perceived indignity of clocking in and out, that will take a lot of the sting out of it.

Did your lawyer give you any advice on how to avoid having them go to DOL for back overtime pay?

IT HR

Good question TX!  I have seen many times lawyers will give companies advice on changing a position from exempt to non-exempt, but they forget to talk about the ramifications if one of these employees decides "Oh, well then all those weeks I worked over 40 hours, then you owe me for that time."  You need to be prepared for the possibility of this.

 

samuraigeorge07

I would recommend that the position description be re-written to clearly indicate that this "new" position is non-exempt. Be sure to exclude any responsiblities  that have "exempt" flavor overtones - no policy making authority, for example.

suekuhn

The biggest worry I have when making a change from exempt to non-exempt is that the employee will realize that they should have been receiving overtime.  I would just be careful of how you state the case.  Personally, I like to state the possitive side about them receiving overtime now.  I would say something about a recent review in their job responsibilities has lead to....etc.  I would also show the employees the job description for their position and ask for feedback before you make the change - just in case there are items they do that haven't been reflected in the job description.  You might to review all job descriptions so it doesn't appear that you are choosing to review only a few jobs.

 I would also state that the change does not change anything else (if true), and that they are still important members of the company.  I would also speak with the supervisors to ensure that they do not treat the employee different, except that they are no longer exempt under the FLSA.