Dive Brief:
- The Department of Labor’s final, and controversial, overtime regulations are around the corner, and HR leaders will face the unenviable task of keeping employee morale from dropping. According to HR.blr.com, exempt employees, for example, will react to a nonexempt reclassification in a variety of ways – some good and some, not so much.
- There is not a single answer about how the OT classification rules will affect an organization. But the article explains that employers who ignore workforce assessments to ensure that employees are correctly classified do so at their own peril. They could potentially face costly employee class action lawsuits and Labor Dept. audits.
- To combat it, HR needs to be proactive and create a communication plan now, as the Labor Dept. overtime classification rule could be here sooner than expected. Prepare a document that explains the what/why/how/when of the changes to share with affected employees. Most of all, be transparent.
Dive Insight:
Employees are sure to have a range of concerns over the new standards for exemption, including whether they will be demoted or earn less income as a result of the reclassification.
To manage those concerns and others, employers can take several steps, including training managers and supervisors about the rule; clearly explaining why the change is taking place; paying for every hour worked (the rule mandates it for newly classified nonexempt workers); conducting and using regular communications efforts; appointing someone other than the employee’s manager as a point person for communication, and last but not least, being proactive.
Finally, it makes sense to figure out which jobs are likely to shift categories. That way, HR can zero in on employees in those jobs to ensure the changes are communicated properly. Review job descriptions for accuracy, including actual job duties to ensure that they still fall within the proper categories (administrative, executive, professional, computer, or outside sales exemptions).