A few weeks away from the new FSLA Overtime Regulation going into effect December 1, and employers are still scratching their heads. The law does not state that salaried employees earning less than $913 per week be changed to hourly. It does state that these employees must be paid overtime. Before reclassifying these employees from exempt (salaried) to nonexempt (hourly), there are a few things to consider.
Regardless of salaried versus hourly, any employee making less than $913 per week will have “to punch a clock”. This alone will cause a culture change. Affected employees are probably not used to tracking start and end times, meal times, or after-hour phone calls and emails. These workers may see this as an inconvenience, or feel “big brother” is watching them.
Many companies have benefits and policies that differ by employee classification, such as exempt and nonexempt. This may disrupt vacation and sick time accrual or PTO (Paid Time Off). Company benefits such as matching 401(k) plans, or other health plan offerings can be affected as well. Policies may exist concerning company property such as cell phones or laptop computers.
Also, consider time worked outside of the office. How are working hours computed during business trips? After hour emails, phone calls, and other types of work must also be tracked. Employees may feel that they can’t get their job done in 40 hours per week. This may be a good time to look for efficiencies or restructuring of job duties.
Regardless of how these new regulations will play out at your company, be empathetic to employees caught up in this transition. Some may feel keeping track of time is a demotion--reassure them it is not. Think through all the aspects of the job that may change and have a plan ready to discuss. Communicate it clearly using common language, not HR or regulation jargon. In the end, the employee is the same person, regardless of how work time is calculated.
UniqueHR is expertly equipped to answer your questions concerning this new regulation and the affects it could have on your employees. Contact us at 361-852-6392.
