Exempt Status/payroll - losing my mind.

Pacer · March 2005

Hi, I'm new to the forum. I am a librarian who became an HR manager 5 years ago when the public library needed an HR person and didn't have the money to hire one. At that time we doubled our staff in a month. We currently have 101 employees, 1 main library, 8 branches,a bookmobile, myriad problems and a director who's looking at retirement. My major role now is to keep us out of court. So far I've beeen successful, but the new FLSA exempt rulings may do us in.

Here's the problem(s): Our labor attorney just decreed that all our librarians, including Department Heads were NOT exempt! Since we are small enough for the director to know everyone, their reccomendations regarding hiring/firing, etc. don't carry "particular" weight. We meet the salary criteria, and the advanced degree criteria (all have Master's degrees) We depend heavily on their exempt status to run the library with a minimum number of non-exempt employees. It also complicates our payroll tremendously because we pay semi-monthly on a salried basis...and pay up to the actual payday. (we don't hold back any time) I know, I've tried to get this changed. There is NO software that will project pay. Since paychecks have to be generated in time to be signed by a board member and distributed, we often project pay 2-3 days, or even a week! We currently pay 40 hours for a 37.5 hour work schedule and NEVER pay overtime. The county is talking about changing to 37.5 hours worked and 37.5 hours paid. We'll have to deal with overtime...on a system that is set up for salaries???? We really need to convert to every other week and hold back a pay-period. I'm in WAY over my head. Any help, guidance or prayers would be greatly appreciated! I've already suggested they hire a REAL HR person.

Don D · March 2005

I disagree with your attorney that your department heads are not exempt. If they manage a department and regularly hire or fire or give recommendations for those activities they very likely are exempt. Otherwise, why are they titled Department Head?

marc · March 2005

Check your job descriptions closely. As Don said, it is likely the Department heads are exempt. As for those under them, degree or not, it is possible that many are non-exempt. Perhaps your research staff might rise to the level of professional exempt, but those that are checking books in and out and placing them on the shelves will likely face an uphill battle.

You can pay non-exempt twice a month, but the stub periods (the beginning and end of the week) will need to be compared for OT purposes. And you can pay non-exempt staff a salary, you do have to track the OT as previosly discussed.

You have valid concerns about your pay periods, but it is ok to make adjustments in the following pay periods. I would recommend you draft a policy that describes this so all EEs will know that is how you handle that.

Now, take a deep breath - this can all be handled. You can make the recommendations you suggest, but garner support from your direct report - share your concerns and logistical nightmares with them and see what happens.

Good luck.

Pacer · March 2005

Thanks for the advice, Marc. I'm checking job descriptions now. We have 13 professional librarians of whom 7 are Department Heads including myself. The other employees who do the routine, clerical or non-professional work like checking books in and out are all non-exempt. We still treat them as salaried and pay for 40 hours while scheduling them at 37.5. They know they are NEVER to go over 40 hours, but it gives us a buffer if someone gets sick, or someone has to stay late for some reason. With a total of 101 employees consisting of 35 part-time, 13 professional and the rest FT, we are stretched a little thin. The main library has 3 floors and is open 70 hours a week, including Saturdays and Sundays. We try to save money on staff so we can buy books, CD's, DVD's, databases, etc., but there is a limit! I'll start working on a policy that explains paying overtime in the next payperiod. Thanks for the help. Sometimes I feel just a little overwhelmed. My position may lose its' exempt status since I have no clerical help and do that part also. I'm hoping that since I exercise some professional judgment in book selection in the area I purchase for, and I do advise the director and Department Heads, and represent the library at hearings etc., I'll be able to stay exempt. Without that flexibility, I have no idea how I'll get it all done. Part of my job involves serving as the President of one of the Local Rotary Clubs this year. Library and County administration are all encouraged to be involved in community affairs. OK, OK...I'm going to stop babbling and take a deep breath. Venting is not the same as accomplishing something! Thank y'all so much!

Pacer · March 2005

My point exactly! They are librarians and they don't have as much management training as I'd like, but they DO give recommendations and their recommendations carry a great deal of weight. Thanks! I'm encouraged.

crawfod · March 2005

Welcome to the forum. Marc's advice is excellent. To learn more about the complicated world of Exempt vs Non-exempt, you may also just need to spend time reading. Here is a web site to help.

[url]www.dol.gov/dol/allcfr/ESA/Title_29/Part_541/toc.htm[/url]

You mentioned you do have an attorney who hopefully could sit down with you and go over the major issues and explain his/her reasoning. Understand too that job titles or degrees alone are insufficient to establish the exempt status of an employee. Salary and actual job duties (a job description duty that is not actually performed doesn't count) are the keys.

Shadowfax · April 2005

I'm gonna throw in a little word of caution here:forget the job descriptions, they won't help you much in determining whether your department heads are exempt or not - analyze what they actually do. If they don't really supervise, manage, use discretion etc, they are, in all liklehood NOT exempt no matter what you call them nor how many degrees they have. When you say ' we rely on them to "run the library" with a minimum of non exempt...' that makes me suspicious that you are not properly assessing their actual duties. Good luck, sounds like a handfull.

pork1 · April 2005

[font size="1" color="#FF0000"]LAST EDITED ON 04-05-05 AT 02:55PM (CST)[/font][br][br]PACER: I can just picture you as one of my very fine and highly qualified librarians getting the job done and worrying yourself to death. As I read through several of your postings here a little bit more of the picture comes out. I, like most, would suggest the starting place for you is the Attorney. You need to meet with him and get more information from him which will tell you he/she has his act together or is he/she one of those attorney's that likes to turn the "sand clock" upside down with every issue and over and over again he/she marks time to increase his/her own personal income. After all he is the SUBJECT MATTER EXPERT and there is no one there to question his position on how this fan is to turn! Little does he know that you are now armed with multi-years of experience and attorneys that will not cost you a dime. So bring it on, may I suggest one question at a time and you should NOT try to respond to every single post. Get the belief that the words are leaning one way or another, then cap this question and post another.

The starting place for consideration of EXEMPT AND NON-EXEMPT is the weekly minimum of $455.00 gross. Anyone not making that amount in gross pay is non-exempt regarless of their job task, yours included.

Next is the physical list of task performed by these individuals. Basically, if one does 80 to 90 percent of their functions using their mind instead of their fingers, you could be looking at a "learned professional" who very possibily could be EXEMPT and salaried. This is not referencing a job description, it is a physical list of activities expected to be accomplished by a person on behalf of the organization. It is this list of activities that one can then develop a "job description".

I look forward to reading more post as this situation comes along to us. Your day has been Blessed for you have found the library that will respond to your issues and help you to understand and provide you with the swords to fight off the world crashing down upon you. we are here to help and we love to do it!

PORK

Gillian3 · April 2005

And don't let a labor attorney decree anything. They give advice, nothing more or less, and there are good attorneys and bad ones. Listen to what they say and question their opinions, just as you would any other business advisor.

Exempt Status/payroll - losing my mind.

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