Tag: Non Exempt

PA Mistake #7—Gaming the System

[Go here for sins 1 to 6.] Sin #7. Gaming the system “John’s work is just OK, to be sure, but I need to give him a big raise to keep him, so he gets an ‘excellent.’” “I can’t stand Sandy, but I can’t transfer him unless he has a high rating; let his next […]

Performance Appraisals—10 Most Common Sins

Sin #1. Failure to set meaningful goals “Well, Sandy, I think we did fairly well this year, eh?” “Tracy, I was sort of hoping you’d make more progress this year.” Evaluation is difficult when there aren’t clear, measurable goals. Many experts recommend the S-M-A-R-T approach to setting goals. That means goals should be: Specific Measurable […]

Sixth Circuit Addresses Salary Basis Test under FLSA

Wage and hour claims remain a hot topic in employment litigation. The Sixth U.S. Circuit Court of Appeals recently addressed a case involving pay deductions. While the court rejected some of the employees’ arguments, it ultimately agreed with the district court that the employer violated the Fair Labor Standards Act (FLSA) by making certain deductions […]

Recent Opinion Letters from the DOL’s Wage and Hour Division

Alexander Passantino’s advice to the lovelorn may not be the makings of the next Sex and the City show, but his pen holds serious sway with hipsters of the payroll specialist in crowd. Alex is the acting administrator of the U.S. Department of Labor’s (DOL) Wage and Hour Division (WHD). As the grand oracle of […]

Furloughs and Reduced-Hour Schedules As Alternatives to Layoffs

Layoffs have many downsides. Employee morale is guaranteed to drop. A company’s unemployment insurance premiums will rise, perhaps steeply. And if an employer provides severance packages and/or outplacement services, they could get very expensive. If layoffs are significant in number, a business may not be able to adequately compete once the economy turns around. And […]

DOL Issues Opinion Letter on Wage and Hour Issues for Mandatory Unpaid Time Off

In today’s economic climate, companies are continually looking for ways to cut costs without cutting jobs and resorting to layoffs. One option many companies are considering is mandatory unpaid time off, sometimes referred to as an employee furlough. By requiring mandatory unpaid time off, companies can reduce payroll expenses by reducing the number of hours […]

Cutting Corners When Cutting Employee’s Hours Can Cost Employers

As surely as the word “layoffs” have become part of nervous break room conversations in companies across the country, enterprising employers have sought out creative alternatives to the standard layoff regime of cost-cutting. Using tactics such as hiring freezes, offers of unpaid leave, shortened workweeks, and even pay cuts, employers may be able to avoid […]

Correctly Classifying IT Employees As Exempt or Non-exempt

by Kara Shea I’m often asked to give advice about whether employees are exempt from the overtime requirements of federal law. I have to say that it’s a pretty easy call about 70 percent of the time. But then there’s that troubling 30 percent of jobs that give my clients (and, truth be told, yours […]

Primer on Travel Time Pay for Workers

by Leslie Sammon When does an employee’s drive to work become paid time? The Fair Labor Standards Act provides the federal rules governing pay for travel time. Employees covered by the minimum wage and overtime requirements (non-exempt employees) under federal law must be paid for all hours worked. Some states also have laws addressing travel […]

Legal Issues When Reducing Employees’ Hours, Wages

by Kara Shea We’ve received many questions lately from employers facing tremendous pressure to reduce their operating expenses. Some proposed cost-cutting efforts implicate various employment laws. Since things may get worse before they get better, I’m undertaking a series of articles to address some of the issues you may encounter in the months ahead. I’ll […]