On December 1st 2016 many middle managers will lose their exempt status and become hourly employees when the new Department of Labor’s overtime law becomes effective. Although the intent of the law is to protect middle-class workers, according to Janet Sloan, President of Seville Staffing, it comes with an emotional cost.
Many of the workers who will be affected are early career middle managers who have worked their way ‘up’ from hourly wage and bask in the knowledge that they are prized salaried employees. However, many companies are not able to bear the burden of increasing their base salary to $47,476. Therefore, many owners and HR managers are facing the task of informing employees that they must return to hourly worker status. It means keeping track of every minute that you work. That means time sheets or time clocks.
Both management and the individuals are reeling from the prospect.
So how should an owner or HR manager handle this change? One suggestion comes from HR experts at Kronos:
The morale impacts from the Employer can be mitigated by adding the proposed classification called “Salaried-NonExempt.” This solution would add a 3rd option to the current two classifications: “Salaried” & “Hourly.”
The link below is of an article that may also be of some help in handling this transition: