Here’s What Happens When Salaried Employees Become Hourly Essay Example

established non-discriminatory rules and regulations, which may require employers to reclassify their employees' eligibility from exempt to non-exempt status. As a result, this could potentially impact employee benefits including ancillary benefits. It is worth noting that whether an employee is designated as salaried or hourly can have implications on benefits such as vacation accrual, disability insurance, or life insurance; however, each employer sets its own policies which ultimately determine the final outcome.

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How Changes Affect Employee Benefits

When contemplating employee reclassification, it's crucial to consider the diverse benefits tied to different employment statuses. Salaried staff members may enjoy greater paid time off and vacation accrual, while hourly workers might be privy to more favorable regulations regarding bonuses and sick leave allowances. Instead of reclassifying employees, revising benefit policies could prove more effective, such as establishing universal guidelines for paid time off or providing it based on job level and tenure rather than employment status.

When Finalizing Reclassifications, Consider Benefits and Flexibility

It is crucial to evaluate the benefits and make a wise decision when finalizing reclassifications. Salaried employees may be impacted, especially those who are used to having flexible work arrangements. A report from GlobalWorkplaceAnalytics.com that was released in January reveals an increase of 103% in regular at-home work since 2005. Around 20-25% of the workforce teleworks with some frequency, and this includes approximately 3.7 million remote workers.

At present, a significant number of employees at S. work remotely for 50% of their time. However, if they are classified as hourly workers, this arrangement will have to change. Despite this, the company will still retain flexibility in its work arrangements albeit through different means. For example, hourly workers who need

to put in extra hours to meet critical project or deadline objectives could start work later on subsequent days. With this approach, even hourly workers can complete all necessary tasks and maintain a 40-hour working week.

One way to ease the transition is by providing training to both employees and managers regarding time-keeping procedures. This should include a detailed explanation of wage and hour policies, including what qualifies as compensable work. Additionally, new policies can be implemented to restrict work outside of the office, and HR software can be used to more precisely track time. While some employers may opt to eliminate flexible work entirely to mitigate risks, this is a severe measure that may lead to employee dissatisfaction.

Instead of unilaterally implementing changes, collaborate with employees and managers to establish adaptable work arrangements that meet everyone's needs and fulfill business requirements. Considering the workers' viewpoint is critical, particularly when adjusting compensation structures, since it can have a significant impact on how they perceive their employment. Alterations may be seen as a regression or stumbling block in a worker's career by some individuals.

Reminding employees that reclassification is a matter of compliance rather than a reflection of their work performance or status is crucial. Ensuring eligibility for overtime pay guarantees fair compensation for their hard work when they exceed their regular working hours. Furthermore, reclassification can enhance employees’ work-life balance by enabling them to take necessary breaks without hindering career advancement. However, even after mitigating concerns about reclassification being a punitive measure, it is important to acknowledge the substantial change involved. Exempt employees are accustomed to working beyond standard hours.

According to a study published in

the Journal of Occupational Health Psychology , the urge to quickly respond to emails and other messages, known as "telepressure," has employees answering emails at all times, including nights and weekends, and always being available. However, reclassified employees will have to break these habits and adjust to working within the 40-hour workweek. Employees who are accustomed to the flexibility of working off the clock to complete their work will need to adapt accordingly. Related:

Employees who have been reclassified can deal with new policies and manage their workload with help from their managers and employers. This includes reviewing policies on overtime and logging hours, as well as working with employees to shift their priorities and responsibilities.