518-373-4111
With the updates to the FLSA salary level for executive, professional, and administrative exempt employees, some positions will need to be changed to hourly, non-exempt positions. Failure to properly estimate an employee’s hours worked may lead to shocking results when you reclassify them as hourly. For instance, assuming that an employee is working 40 hours per week and calculating their new hourly rate based on this could lead to a huge amount of unexpected overtime payout if the employee has been working more than 40 hours per week on a regular basis.
In order to get the information you need, you’ll have to ask your exempt employees to do something new: track their time. However, asking exempt employees to begin tracking hours worked without providing detailed reasoning may cause confusion. You’ll want to clearly communicate with employees that this is for tracking and preparation purposes only and will have no effect on their current salary. The sole purpose is to prepare for compliance with the new laws – not micromanagement.
Download our Time Tracking Memo to Exempt Employees to notify your affected staff of the new rule and the need to start tracking their hours. You can customize the memo to add your company’s logo and any other information you need to include.
GTM has advanced time and attendance solutions to help you manage this transition, including web-based time clocks and mobile applications. See more information here or contact us at (518) 373-4111 to learn how we can help.
