Have you ever had an employee who thought being ‘exempt’ from overtime meant they could come and go as they pleased, working as much or as little as they wanted?
It is tempting to switch that employee to an hourly compensation plan, but try and restrain. This solution can cause more problems than it would solve, including the loss of exempt status.
First and foremost, for an employee to be considered 'exempt from overtime pay' the position must meet a job duties and salary basis test. According to the U.S. Department of Labor Fact Sheet No. 17G, “Being paid on a ‘salary basis’ means an employee regularly receives a predetermined amount of compensation each pay period on a weekly, or less frequently, basis. The predetermined amount cannot be reduced because of variations in the quality or quantity of the employee’s work.”
Employers do have the right to issue various ‘disciplinary actions’ such as unpaid suspensions for a violation of serious workplace misconduct, however the U. S. Department of Labor maintains this must not be for performance or attendance issues.
Do not fear there are choices for employers. First, does the job absolutely demand that it take place on a rigid timetable? If not, giving some flexible arrangements could be a great way to increase desired productivity while raising morale.
Make a habit of reviewing company policies. Do the established practices allow for some flex scheduling? Telecommuting can be an appealing option for employees with commuting problems.
Always check to see if your employees have a pre-arranged religious or Americans with Disabilities Act accommodations. That may help to explain some scheduling conflicts.
Most importantly, an ‘exempt’ status does not mean the employee is exempt from being held accountable. Your company policies apply to all employees no matter the status.
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