Professional Documents
Culture Documents
February 2010 A snapshot into the current issues affecting your people
The person you call office manager who has no direct reports and does mostly administrative work? The field supervisor who oversees a crew but also works alongside her crew? Computer techs at a company?
A business might consider these employees to be exempt, only to find that the FLSA calls them non-exempt and eligible for overtime pay. Determining who is exempt from overtime is a very complex process and has to be done on a job-by-job basis. Each job should have a job description that clearly outlines job duties, responsibilities, skills and professional requirements.
Please see Overtime, page 2
Overtime
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The information from the job description is what is used to test against the FLSA to determine whether the job is exempt or non-exempt. Remember, it is not the person but the job that determines overtime eligibility. Incorrectly classifying a job position as exempt usually happens when a company wants to give a valuable employee a promotion: The employee is given a raise is no longer consider an hourly employee but a salaried employee. While exempt status is considered to be a badge of honor and is hard to take away once given, it can turn into an even bigger problem down the road if the employees position should have been classified as non-exempt. If a company is caught with exempt employees who should be overtime eligible, the company must pay fines and projected back pay with interest. Although it may seem unlikely that a jobs exempt or non-exempt classification would surface, it can easily become known. Say, for example, a person you fire hires an attorney who figures out that the fired employee should have been overtime eligible. Or this same fired employee files an EEO or unfair labor practices claim. The labor board then conducts an audit as a result and any improperly classified employees would receive back pay even if they didnt ask for it. The back pay can go back up to three years, resulting in a substantial amount for an employer to pay. How should you fix this right now? Conduct a proper analysis of job descriptions versus the FLSA. Some employees will be exempt because of salary. Others will be exempt because of managing at least two employees more than 80 percent of the time. Another group of employees will be classified as exempt because their roles require a specific degree. Most employees are non-exempt. If you are the least bit unsure as to a job position's classification, seek professional help. It is better to pay your employees overtime now than to pay fines and back pay in the future.
Best Employees
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If you want to make sure your best stay with you, it may not be too late. There are several steps that you can take right now to increase your chance of keeping the ones you need as business gets better. Step One: The first step is a simple one: Tell them how important they are to you and your company. Some people may guess at how valued they are at work, especially in the present culture of layoffs and downsizing. But just because you have kept an employee on doesn't mean he doesn't need to hear positive feedback on the job he is doing. Hearing this feedback will also calm any anxiety an employee has that he is only one round of layoffs away from being out of a job. A big key is to reduce an employee's stress about the job and his security. Step Two: The next step is to give your best employees a bit more information about the direction in which the company is going, rather than giving them the standard company line. This insider information makes them feel like a part of the companys in crowd. The information you give them needs to be positive and show that the company has a long-term strategy is in place. One of the first reasons interviewing candidates give to potential new employers is that they are looking for stability in the new company. People will move for the same or slightly lower salary in search of stability. Next month we will discuss steps three through five on how you can keep your best employees.
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