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Reclassifying position
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Reclassifying position
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We are in the process of evaluating positions in our organization. One position in particular will need to be reclassified from Exempt to Non-exempt. (This is due to some recent DOL postings and inter
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Reclassifying position
posted at 6/14/2010 7:27 AM EDT
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Posts: 57
First: 6/16/2006 Last: 7/20/2010 |
We are in the process of evaluating positions in our organization. One position in particular will need to be reclassified from Exempt to Non-exempt. (This is due to some recent DOL postings and interpretative rulings)This position is currently salary plus commission. When we change to Non-Exempt we are considering an hourly rate of above minimum wage; however, less than what current salary translated to hourly wage would be.We will allow at least a 30 day transition period for this change. Do you see any issues with this? |
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Reclassifying position
posted at 6/14/2010 11:47 AM EDT
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Posts: 2146
First: 2/15/2006 Last: 9/14/2011 |
I'd just have a good logical explanation on why it is changing...if you don't, the affected employees will assume the worst and actually start to wonder if they shouldn't have been getting overtime before. So I would be able to explain the difference in the positions clearly.
That, and I think there is some type of magic halo on being exempt. Seriously, employees seem to see being taken from exempt to non-exempt as a LARGE demotion, even if in the end their pay increases. With the pay also decreasing, you are knocking them twice. Will you be keeping the commission part? If so, you need to check into how it affects your regular rate of pay and any overtime calculations you might have. |
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Reclassifying position
posted at 6/14/2010 11:51 AM EDT
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Posts: 562
First: 11/12/2009 Last: 9/14/2011 |
Reducing their salary won't go over well. If you're taking into account past overtime hours worked that will make up the shortfall, explain that to them and show how their income won't take a major hit. You don't say it, but are you keeping the commission plan in place?
If these folks are going to be taking a major income hit, be prepared for them to walk. |
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Reclassifying position
posted at 6/15/2010 7:42 AM EDT
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Posts: 57
First: 6/16/2006 Last: 7/20/2010 |
Commission will continue to be a part of this employee's wages. The change from salary to hourly is something we need to do. We are prepared for employee to 'walk'. Thanks for all the input - appreciate it. |
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Reclassifying position
posted at 6/20/2010 7:18 PM EDT
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Posts: 43
First: 10/14/2000 Last: 8/18/2011 |
Are you factoring in the cost of replacing and training new employees for the ones who walk? I suspect it would be more economical to raise the pay enough to keep the pay about the same as before rather than take this hit. |
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