- As the Department of Labor considers changes to the FLSA overtime exemption rules, managers may need to prepare for shifting employees' hours and pay – and the fallout from potentially disgruntled employees.
- According to HR Morning, the No. 1 question employers will need to ask themselves is whether newly non-exempt employees will be as productive working 40-hour workweeks (if you decide to limit the amount of overtime). If not, employers will need to consider if they will decrease pay and allow OT pay to catch up or overall lessen their workloads.
- 67% of HR pros said if the new rules lead to increases in OT eligibility and OT pay, it's likely that employees will have decreased flexibility and autonomy, according to a recent SHRM survey.
The new rule may create some bureaucratic headaches for employers who will need to begin tracking employee hours, including telecommuters.
Employees, too, may feel burnt from the changes, HR Morning reports. They may feel "demoted" by having to clock in hours, largely an issue of perception. Employers can try to ease the issue by presenting it as a way for an employee to have more structure in their hours and, perhaps, improved work-life balance, especially if hours are limited.