Tip Tuesday! 3 awkward conversations DOL’s new overtime rule will spark

by Christian Schappel

Are you ready for the three most difficult conversations you’ve had in a while? 

The DOL’s changes to the FLSA white collar overtime exemption regulations aren’t just going to be a financial headache for employers; they’re also going to be a managerial dilemma.

If the final rule resembles anything close to the DOL’s proposal — which would crank up the minimum salary threshold for all exempt employees to $50K (or at least $47K) — large chunks of some companies’ workforces are about to go from exempt to non-exempt.

Financial implications aside, that creates a huge management problem: The change in classification could 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.

Odds are the average worker’s going to blame you, their employer. After all, not everyone keeps up to date with what the feds are doing. So, on its face, the shift from exempt to non-exempt status may come off looking like something your company did for its own benefit — unless you’re willing to set the record straight right now.

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