The agency’s changes to the FLSA overtime exemption rules aren’t just going to be a financial headache for employers; they’re also going to be a managerial dilemma.
If the final rules resemble anything close to the DOL’s proposal — which would crank up the minimum salary threshold for all exempt employees to $50,440 — large chunks of companies’ workforces are about to go from exempt to non-exempt.
Financial implications aside, that creates a huge management problem: The change in classification will feel like a demotion to employees.
They’ll blame the DOL, right?
If you think employees will curse the Obama Administration for what could essentially be an overnight change in their work arrangements/classifications, you’re in for disappointment.
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