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HR Just let me know about changes to my status due to new FLSA laws

Posted on 7/6/16 at 12:56 pm
Posted by MrTwoBits
Member since Oct 2013
657 posts
Posted on 7/6/16 at 12:56 pm
that Obama signed that take affect nationwide 12/1. I think I understand everything but wanted to ask everyone here (who are all much smarter than me on these things) what y'all know about it or if you've been affected by it.

Currently I am salaried and make around $53K a year. He said that the new threshold where things will change up is around the $48K mark, but it will adjust every 3 years so HR figured that everyone who was close to that range would go ahead and be changed.

So basically, I'm getting reclassified from salary to hourly. Using my annual gross they came up with my hourly wage which is what I'll still make, no surpirse there. The biggest thing though is that I'll now be eligible for overtime (time and a half) which I never have before. In my industry, I rarely work less than 80 hours in a pay period. Sometimes way over. So ultimately I think this could/should be good for me, as I"ll now be able to take home more money.

The downsides, from what I can gather, are that I'll now have to clock in and out (and leaving for lunch, etc) and I'm no longer a "salaried" employee (which I don't really care about that 'status' anyway).

Has anyone else had to go through this before? Can I expect any major changes do you think? This is all new to me so I'm trying to get a handle on how I feel about it.
This post was edited on 7/6/16 at 1:02 pm
Posted by baldona
Florida
Member since Feb 2016
20384 posts
Posted on 7/6/16 at 1:00 pm to
I can tell you that your company is about to get very serious about your hours worked, your lunches, doc appts, everything else will be sure to be clocked out for. I will guess that you will also be held more accountable for your time.

Companies are not going to just be able to allow their avg. salaried employee that worked 45 hours a week to collect 5 hours of OT all the time. The budget is going to be affected in some manner.
Posted by MrTwoBits
Member since Oct 2013
657 posts
Posted on 7/6/16 at 1:04 pm to
So should I be worried? I'm a good employee and don't try to skirt the system, so I'm not worried about them putting a magnifying glass on my hours because I'm always on the up and up.

A lot of the times when I go way over 80 in a PP it's because we have big things going on over a weekend which I am responsible for, so there's honestly no way around me still having to work those.

As long as I don't take home any LESS money I guess I don't have any problems with this, but I'm just trying to fiture out if there's a big piece that I'm missing here.
Posted by LSUFanHouston
NOLA
Member since Jul 2009
37003 posts
Posted on 7/6/16 at 1:23 pm to
Yeah, you will be a lot more accountable now for your hours. That half hour you may leave one day every other week that you don't deduct from your PTO? Can't do that anymore.

Provided you work at least 40 hours a week (counting all the clock outs for breaks, lunch, etc) you should not see any downward pressure on your take home pay.

However, your raises may be less under the new program, because the money to pay OT has to come from somewhere.

A lot of companies will be going through this over the next few months.
Posted by hungryone
river parishes
Member since Sep 2010
11987 posts
Posted on 7/6/16 at 1:27 pm to
If it honestly takes you & others 80 hrs some weeks to get the essential work done, expect to see some big changes. It is likely that either additional employees will be required, or the company's labor costs are gonna go way way up (b/c it's paying you & others some serious overtime).

So expect to see some workload restructuring--the standard sort of things deployed to keep labor costs down. Expect to be told to delegate less skilled tasks to lower paid employees; expect management to review the kind of tasks you do & how efficiently you do them. Expect to see some outsourcing of specific tasks wherever possible (it will be cheaper to pay contractors than to pay you & others overtime). Expect to see some tech solutions (whether software or physical automation) replace humans.

You don't mention your industry, so it's hard to forecast with more specificity.
Posted by roadGator
Member since Feb 2009
139747 posts
Posted on 7/6/16 at 1:28 pm to
You are fine but I wouldn't expect a bunch of overtime.

My company is now farming out more functions because we had to change much of our admin from salary to hourly.

Those folks now disappear at 5pm when you used to see them until 7 or 8 when we were busy.
Posted by MrTwoBits
Member since Oct 2013
657 posts
Posted on 7/6/16 at 1:29 pm to
quote:

you will be a lot more accountable now for your hours. That half hour you may leave one day every other week that you don't deduct from your PTO? Can't do that anymore.



NOw that I really think hard, I guess I have taken a little advantage. Nothing egregious, but maybe a few extra minutes for lunch here, leaving a bit early on a Friday there. I guess ultimately it's not going to be that big of a deal to get in line though.

quote:

Provided you work at least 40 hours a week (counting all the clock outs for breaks, lunch, etc) you should not see any downward pressure on your take home pay.


That's good. And as mentioned it's probably one week a month that I defniitely go over due to working on a weekend or staying late.

quote:

your raises may be less under the new program, because the money to pay OT has to come from somewhere


Didn't think about that. Typically we get 3% each year at our review (I think it's 1.5 for performance and 1.5 COL, but I'm not sure). Is that a definite that they will be affected?

Posted by castorinho
13623 posts
Member since Nov 2010
82010 posts
Posted on 7/6/16 at 1:30 pm to
quote:

if there's a big piece that I'm missing here.
The big piece is that you'll probably be watched more closely and might lose some of the flexibility you had (e.g if I have a doctor's appointment, being salaried, I don't try to make that time up by staying later in the day because I know in the course of the year there'll be a situation that I work more).
Also depending on what you do, your job security % might have taken a small hit.
Posted by The Spleen
Member since Dec 2010
38865 posts
Posted on 7/6/16 at 1:31 pm to
quote:

The downsides, from what I can gather, are that I'll now have to clock in and out (and leaving for lunch, etc)



This is the biggest change, and it may impact you severely. In almost every salaried position I've had, I was rarely charged time for quick errands, longer lunches, doctor's appointments, etc. Random things you can't always plan for, but always pop up. I'd just leave, take care of it, and get back to the office. Same with ducking out an hour or two early on Fridays or days before holidays. Now you're going to have to clock out for those things most likely. You may make up for those hours through overtime, so it won't be a huge deal.
Posted by Epic Cajun
Lafayette, LA
Member since Feb 2013
32351 posts
Posted on 7/6/16 at 1:38 pm to
quote:

If it honestly takes you & others 80 hrs some weeks


He mentioned 80 hours per pay period, which is probably not weekly.
Posted by LSUFanHouston
NOLA
Member since Jul 2009
37003 posts
Posted on 7/6/16 at 2:06 pm to
quote:

Didn't think about that. Typically we get 3% each year at our review (I think it's 1.5 for performance and 1.5 COL, but I'm not sure). Is that a definite that they will be affected?


There is no law that says you have to get a raise or what it must be, it's totally up to the company. So no, it's not at all definite that it would be affected.

But the whole point of these new regs is to increase the OT that is paid out, all other things being in a vaccum. This is where the Obama administration completely shows how out of touch they are. The idea that this will cause companies to limit hours, cut employees, or cut raises, never crosses their mind.

If a company nets $500,000 a year before this new reg, you can bet your rear that they will do everything they can to get at least the same after the regs. So if you are increases costs in one area, you have to decrease them in another, or raise revenue, to make it work.
Posted by MrTwoBits
Member since Oct 2013
657 posts
Posted on 7/6/16 at 2:09 pm to
I work in a municipal setting, so I've considered myself very lucky in teh obama administration that I haven't really felt much of his actions unlike other people. My insurance costs and other things never directly affected my personally as my company has always absorbed that.

I guess the time has come now though.
Posted by baldona
Florida
Member since Feb 2016
20384 posts
Posted on 7/6/16 at 2:11 pm to
In general I think the rules are good for good employees and bad for bad employees and owners/ managers.

It's going to become a lot more apparent who gets their work done and additionally how long everything takes. Overall as long as you are a decent employee I would not sweat it, just expect some small changes.
Posted by TthomasJR
Houston, TX
Member since Sep 2006
17274 posts
Posted on 7/6/16 at 2:55 pm to
The new regulations are to help out the lower paid employees by bumping up that OT threshold.

I personally feel that it is great for employees like you who work extra hours. They will probably be monitoring your hours though. I know my company puts a statement in our policy manual that OT is paid for time over 40, but employees may only work over 40 is authorized.
Posted by LSURussian
Member since Feb 2005
126929 posts
Posted on 7/6/16 at 2:56 pm to
quote:

I rarely work less than 80 hours in a pay period.
Is your pay period weekly, bi-weekly or semi-monthly?

quote:

Can I expect any major changes do you think?
You probably won't be allowed to post on TigerDroppings any more while at work....
Posted by hungryone
river parishes
Member since Sep 2010
11987 posts
Posted on 7/6/16 at 3:01 pm to
quote:

You probably won't be allowed to post on TigerDroppings any more while at work....


I LOL'd at that one, esp since he's admitted to being a municipal employee.
Posted by LSURussian
Member since Feb 2005
126929 posts
Posted on 7/6/16 at 4:20 pm to
quote:

esp since he's admitted to being a municipal employee.
I admit I didn't read the entire thread before I replied to him.

If he is a local governmental employee, the Fair Labor Standards Act does not apply to him like it does to private industry employees.

There are special rules regarding overtime for governmental employees involving giving compensatory time off in lieu of paying for overtime worked.
quote:

Special rules apply to state and local government employment involving fire protection and law enforcement activities, volunteer services, and compensatory time off (instead of cash overtime pay).

United States Department of Labor website
Posted by elposter
Member since Dec 2010
24836 posts
Posted on 7/6/16 at 5:31 pm to
Companies will do what it takes to make this FLSA change essentially cost neutral for them. I doubt you will be seeing a big increase in compensation but you will likely be seeing an increase in scrutiny of your start time / end time, breaks, doctor's appointments, days off, etc.

I think this is a classic example of the government thinking it is going to accomplish one thing but is actually going to have unintended consequences that hurt more than help.

What number did they divide your annual gross by? That information would be telling.
Posted by Porker Face
Midnight
Member since Feb 2012
15312 posts
Posted on 7/6/16 at 5:45 pm to
quote:

The idea that this will cause companies to limit hours, cut employees, or cut raises, never crosses their mind.


Never? It never crossed their mind?

Which seat did you have in the Oval for these discussions?
Posted by BACONisMEATcandy
Member since Dec 2007
46643 posts
Posted on 7/6/16 at 7:29 pm to
Which private business did President Obama successfully run?

Since you view speculation as a negative, where is your outrage over that? confused:
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