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#2078362 - 05/12/16 04:30 PM New Overtime Rules
hatman Offline
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Curious how others are going to handle the upcoming overtime rule changes. For this example, let's assume all the duty requirements are met. In deciding who now has to "punch a time clock", will you base it on title or job function? (I think this would be hard because some "branch managers" may be above the limit while others would be below). Will it simply be, "You make over the limit, you don't punch" vs "You make under the limit, you punch"? Granted people are allowed to talk about their salary, but most don't. Going strictly by limits, some will get an idea of what their co-workers make. Is anyone concerned about the, "Sally makes more than me but she plays on the internet all day; I do all the work!" comments?

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#2078385 - 05/12/16 05:15 PM Re: New Overtime Rules hatman
HR Banker Offline
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It looks to me as if anyone (no matter the title or function) making under the limit will have to punch. If you can't meet the salary test then keeping a record would be required and the easiest way would be have them actually punch the time clock. We plan to handle it that way.

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#2078453 - 05/12/16 08:05 PM Re: New Overtime Rules hatman
CindyS Offline
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When do the new rules go into effect?

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#2078506 - 05/13/16 12:32 PM Re: New Overtime Rules hatman
hatman Offline
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The new rule has not been finalized. I'm just trying to get a plan in place.

The point I'm trying to make is if you have two employees setting side by side, doing the same thing, all things being equal, and one has to punch while the other doesn't - couldn't that cause some friction? I'm just wondering if we should base the punch/not punch rule on something other than the salary limit. For example, Reg O officers don't have to punch, everybody else has to punch. Or, VPs and above don't have to punch (assuming they ALL meet the minimum salary). I'm just wondering if there is a way to follow the rule but keep the peace.....or maybe I'm just overthinking the whole thing!

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#2078509 - 05/13/16 12:51 PM Re: New Overtime Rules hatman
rlcarey Online
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I would fathom a guess that if you have exempt employees making less than $50,000 a year, they are probably already misclassified.
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#2078517 - 05/13/16 01:05 PM Re: New Overtime Rules hatman
hatman Offline
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That may be true in Texas, but not in my neighborhood. Paying overtime will not be an issue for us, my goal is just to keep the peace among coworkers.

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#2078522 - 05/13/16 01:27 PM Re: New Overtime Rules hatman
rlcarey Online
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if you have two employees setting side by side, doing the same thing, all things being equal,

Then you already have pay inequities and those should be rectified before you get sued by the one making less. That scenario has little to do with an overtime issue.

There are plenty of articles on the internet explaining the strategies that employers can use to make the crossing of this threshold the least painful for employers and employees.

And this suggestion: "VPs and above don't have to punch". Just because someone has a VP title doesn't make them exempt. It all has to do with job responsibilities. For example, most loan officers (many that may have VP titles) would not be exempt employees under the current labor laws.

https://www.dol.gov/WHD/opinion/adminIntrprtn/FLSA/2010/FLSAAI2010_1.pdf
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#2079319 - 05/19/16 02:27 PM Re: New Overtime Rules hatman
SWFLBanker Offline
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I have a question to add. If you have a salaried employee making less then the minimum, but is responsible for managing 3 or more employees? Do the punch or not punch? They don't meet the salary test but to meet the duties test?

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#2079331 - 05/19/16 02:41 PM Re: New Overtime Rules hatman
HR Banker Offline
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From the DOL's Q&A:

3. Q. What determines if an employee falls within one of the white collar exemptions?
To qualify for exemption, a white collar employee generally must:
be salaried, meaning that they are paid a predetermined and fixed salary that is not subject to reduction because of variations in the quality or quantity of work performed (the "salary basis test");
be paid more than a specified weekly salary level, which is $913 per week (the equivalent of $47,476 annually for a full-year worker) under this Final Rule (the "salary level test"); and
primarily perform executive, administrative, or professional duties, as defined in the Department's regulations (the "duties test").
Certain employees are not subject to either the salary basis or salary level tests (for example, doctors, teachers, and lawyers). The Department's regulations also provide an exemption for certain highly compensated employees ("HCE") who earn above a higher total annual compensation level ($134,004 under this Final Rule) and satisfy a minimal duties test.

So they would have to meet ALL tests in order to be exempt.

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#2079336 - 05/19/16 02:51 PM Re: New Overtime Rules hatman
SWFLBanker Offline
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Thanks for the clarification!

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#2079893 - 05/23/16 06:28 PM Re: New Overtime Rules hatman
Aggie_Grad Offline
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Oklahoma
At what point in time do you take a measurement of what people are making? At the end of the year when you have the complete figures for salaries, bonuses, all commissions earned, etc? Example: I can pull this info for the year 2015 and say, "Okay, these 3 people did not make the cut." But, officers (exempt, salaried) get their yearly bonuses in February of each year, so there may be 1 or 2 that could now be up above the threshold. So someone who was a clock-puncher for 2 months is now exempt again. Is it a fluctuating list? Any ideas would be appreciated.
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#2079963 - 05/24/16 12:23 PM Re: New Overtime Rules hatman
rlcarey Online
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https://www.dol.gov/whd/overtime/final2016/overtime-factsheet.htm

Unless they meet the normal salary requirements, bonuses don't count.
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#2082460 - 06/08/16 05:05 PM Re: New Overtime Rules hatman
LFontanille Offline
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We are currently examining our Bank to determine which employees should be exempt and which employees should be nonexempt. If an employee meets the salary threshold and duties test, are we required to make them an exempt employee?

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#2082467 - 06/08/16 05:20 PM Re: New Overtime Rules hatman
rlcarey Online
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You are never required to make them an exempt employee. The lawsuits go in the other direction, i.e., treated as exempt when they do not qualify.
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#2082508 - 06/08/16 07:01 PM Re: New Overtime Rules rlcarey
LFontanille Offline
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Thank you!

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#2100189 - 09/23/16 07:43 PM Re: New Overtime Rules hatman
slicehead Offline
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I understand the purpose of the new law that will go into effect on 12/1. I am at a very small financial institution (1 location & 8 employees). For simplicity, all employees were considered exempt and receive a salary. We are paid twice a month. Payroll never changes, so it is easy for our CFO to do payroll. Under the new law, I assume I can change our employees to non exempt but continue to pay them a salary? We have a policy that overtime must be authorized prior and I do not ever see a case for overtime to occur. Our employees average between 35 - 37.5 hours. NEVER hit 40 hours. I know we would have to track hours in case questioned and determine an hourly wage in case someone would go over 40. Are we OK?

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#2100248 - 09/24/16 01:13 PM Re: New Overtime Rules hatman
rlcarey Online
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For simplicity, all employees were considered exempt and receive a salary.

You most likely already have violations regardless of the new laws. It is very important that you properly classify your employees and have a proper recordkeeping system. You need to get with an employment attorney to get this straightened out.
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#2100280 - 09/26/16 01:14 PM Re: New Overtime Rules rlcarey
swiggles Offline
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Quote:
Our employees average between 35 - 37.5 hours. NEVER hit 40 hours.


Do you have any job openings? smile
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#2100307 - 09/26/16 03:14 PM Re: New Overtime Rules hatman
HappyGilmore Offline
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Pulling people out of the ditc...
Quote:
For simplicity, all employees were considered exempt and receive a salary. We are paid twice a month. Payroll never changes, so it is easy for our CFO to do payroll. Under the new law, I assume I can change our employees to non exempt but continue to pay them a salary


whether they ever work overtime or not does not come into this equation (although it would be great if it did). the law as passed requires you to review each exempt position and determine if it falls into exempt or non-exempt based on duties and current pay structure. they also don't care if this makes life more difficult for your CFO. also, if you choose to allow them to remain exempt, you have a minimum pay scale they need to achieve, likely anyone on the teller line would be thrilled to hit that minimum amount.

way too much to discuss in a short response, you should seek professional guidance from an HR attorney, as previously suggested.
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#2103258 - 10/17/16 04:41 PM Re: New Overtime Rules hatman
Lori01 Offline
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VT
you also need to keep in mind (your new) non-exempt employees must be paid for time they spend answering work emails from home. That's going to be a hard one for many...either they have to stop looking at emails or you have to track the time and pay them.

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#2103285 - 10/17/16 05:58 PM Re: New Overtime Rules hatman
rlcarey Online
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rlcarey
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Galveston, TX
Or you don't give them remote access.
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#2108461 - 11/23/16 02:22 PM Re: New Overtime Rules hatman
ComplyGuy Offline
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Now the rule has been blocked by a judge. We already made the changes to get into compliance, so we can't really go back now. .

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#2108510 - 11/23/16 04:10 PM Re: New Overtime Rules hatman
rlcarey Online
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rlcarey
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There are going to be a lot of pissed off employers - that is for sure.
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#2108826 - 11/28/16 09:46 PM Re: New Overtime Rules hatman
HappyGilmore Offline
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Pulling people out of the ditc...
I believe only 21 states have joined the lawsuit, leaving 29 free to implement, or is it 37 free to implement? we are planning on implementing as well, already have communicated with employees, feel it is the right thing to do.
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#2108845 - 11/28/16 10:25 PM Re: New Overtime Rules hatman
rlcarey Online
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rlcarey
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Galveston, TX
The injunction is not just for the States involved in the suit. Of course you are always free to pay anyone overtime - whether qualified as exempt or not.
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