SAMPLE LANGUAGE TO USE WHEN COMMUNICATING WITH …

[Pages:4]Your Guide to complying with the revised Fair Labor Standards Regulations that go in to affect 12/1/2016

SAMPLE LANGUAGE TO USE WHEN COMMUNICATING WITH EMPLOYEES ABOUT UPCOMING FLSA CHANGES

TO : All Employees FROM: XYZ Company DATE: XX/XX/2016 SUBJECT: Overtime Threshold changes as of 12/1/2016 What we want employees to be aware of prior to 12/1/2016: As we are sure you have heard, effective 12/1/2016 the overtime threshold will change. This change may affect many employees' Fair Labor Standards position classification. Since the Company is currently analyzing each position and evaluating which positions are subject to the new FLSA rules and which positions are not, the Company is taking this opportunity to evaluate fair market pay for all positions and duties expected for each position. Through this analysis our objective is to get all employees in the correct position classification and pay range.

What is Next? As we head closer to December 1, 2016 we will start communicating with employees directly who may be affected by the change. We are projecting that many employees throughout the Company, in both hourly and salaried positions, may be affected by these changes. Your manager, along with Human Resources, will be contacting you directly within the next month or so to discuss how the changes will affect you. For now, we wanted you to know there is a significant shift that will occur on or around 12/1/2016 in the FLSA overtime threshold.

Employees whose positions are currently classified as exempt, that fall under the new threshold, may not be able to keep the salary exemption status. Therefore, their status would need to be changed to hourly (non-exempt).

All jobs contribute to the overall success of the Company. If you are an employee whose classification needs to change based on the newly revised FLSA rules, please know that this is a requirement that is being required of the Company, by the Department of Labor, to remain in compliance with FLSA. If your status is changed, the change is merely an effort to ensure continued compliance with the Department of Labor (DOL) and FLSA. The value that you provide to our team is still the same; the status changing will not change how we value our employees.

Why are these changes being implemented?

Changes to the overtime threshold have been an ongoing topic for our government for many years. The changes have been proposed because an increasing number of workers are working more hours and not being compensated for them. With the final ruling now announced, the intent is that it will help ensure that every worker is compensated fairly for their hard work.

What is the Overtime Threshold?

The overtime threshold is the threshold set by FLSA that determines when an employee makes a certain salary if that employee is required to be paid for overtime when they work over 40 regular hours in a workweek OR if due to position duties, the employee is not required to be paid overtime for hours worked over 40 in a work week.

Increase in threshold salary level for full time, salaried workers: The new rule increases the threshold for overtime pay for salaried, full-time workers from $23,600/annual ($11.35/hourly) to $47,476/annual ($22.83/hourly). This is an increase from $455 to $913 per week.

SAMPLE Break Language

Changes that will occur if status is changed to non-exempt from exempt

Employees will be required to clock in and out at the end of their work day. Additionally, employees may be required to clock out and back in for meal breaks. Rest breaks longer than 20 minutes will require employees to clock out and back in. If an employee leaves the facility for any reason, the non exempt employee is required to clock out and back on their return. At the time the employee's status is changed to non-exempt, training will be provided to the employee regarding clocking in and out through the record keeping system to ensure that employees know what is expected of them.

***********************************************************************

Below are recommended internal discussion topics for Senior managers to discuss as 12/1/2016 approaches and discussions start to occur with employees about their status changes.

When making changes, and determining how to make changes

I have an employee that works 50 hours a week on exempt status. He will be moved back to hourly, and will get a pay reduction. This will help us to maintain his current weekly wage. Is this something that we can do and be in compliance with FLSA.

A. Employers have a range of options for responding to the updated standard salary level. For each affected employee newly entitled to overtime pay, employers may:

increase the salary of an employee who meets the duties test to at least the new salary level to retain his or her exempt status;

pay an overtime premium of one and a half times the employee's regular rate of pay for any overtime hours worked;

reduce or eliminate overtime hours; reduce the amount of pay allocated to base salary (provided that the employee still earns at

least the applicable hourly minimum wage) and add pay to account for overtime for hours worked over 40 in the workweek, to hold total weekly pay constant at the 50 hours; or use some combination of these responses.

Flexibility

Determine who will be present when employee is advised their status is being changed. Meaning, will it just be the manager or will HR participate as well? (In person where possible and virtual when necessary)

Access to Senior managers Career advancement Managers should discuss with employees whose status is being changed to hourly that they may

need to adjust their daily work routines. o Example: Currently employee comes in early, does not take a lunch and stays after their scheduled end time. Employees will need to be coached that they need to work X schedule/be more efficient. Hours worked will be paid to employee but the Company does not want to just pay hours because the employee has always started earlier and stayed later.

Management will need to get a pulse on each employee's workload and help employees be efficient with their time.

o It is recommended that handbooks include language that employees will be paid for all hours worked but all overtime must be approved in advance before the hours are worked. Employees that work overtime without approval will be paid for their time worked but will be subject to disciplinary action based on policy violation. It is recommended that handbooks include a policy that pertains to non exempt employees working in the evening/weekends/after hours. For example, how will the Company handle the hours worked when an employee checks their email after work hours. Does the Company expect employees to check email / respond to emails after work hours? We are assuming the answer is "yes" for certain positions. Employees who have positions that are not considered "essential and on call" should be advised that they are relieved of their work duties when their shift ends and they should not check email until the next schedule work day. If a manager finds out that an employee is "working" and not submitting the time worked, it is recommended that the employee be warned.

How will cell phones/ calls/ texts be expected to be handled/ responded to? (Especially employees who will stop receiving their cell phone stipend. These employees will need to be communicated to that their stipend will stop as of X date and they are no longer expected to answer/ check email after work hours.)

Benefits of Exempt vs. Non Exempt employees o Will certain benefits change when someone's status is changed?

Recommended employee communication timeline up through 12/1/2016

First communication piece to employees notifying them about 12/1/2016 upcoming changes: McP recommends sending out 1 communication piece in Sept/ October 2016 that outlines the changes coming effective 12/1/2016.

Before 12/1/2016: Manager should provide employees whose statuses are changing with a Personnel Action Notice (PAN) to sign off on that includes their new FLSA classification, date their status will change and any compensation change occurring.

- If status is changing to non-exempt, it is recommended that the manager print out the record keeping section from the handbook for the employee to sign off on. Manager should review what is expected of employee from time and attendance etc.

- Additionally, we recommend that a copy of the annual Payroll Cycle Schedule be provided to any employees whose status is changing from exempt to non-exempt. Questions about this guide, please contact McCloskey Partners, LLC at 215-716-3035 x 700 or denise@

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download