© 2024 Seyfarth Shaw LLP | www.seyfarth.com Classification Guidebook | 57 Sample FAQs A. FAQ for Questions from Managers of Reclassified Workers What do managers of employees being reclassified need to know? For previously exempt employees being reclassified as non-exempt, managers will need to start approving timesheets in the time entry system in order for the reclassified employees to be paid. Going forward, they will have to approve any hours over 40 that these reclassified employees work, as any additional time worked will incur a cost to the business. What hours constitute overtime will differ by locality. For example, if a manager supervises employees in California, the manager needs to know that any hours over 8 per day and up to 12 per day, as well as the first 8 hours worked on the seventh consecutive workday are considered overtime hours for which time and one-half pay is owed. If a California employee works more than 12 hours per day or works more than 8 hours on the seventh consecutive workday, the employee is owed overtime pay at twice the employee’s regular rate of pay. Note: In addition to California, there are potentially applicable daily overtime requirements in Alaska, California, Colorado, Florida (for manual labor), Nevada, Oregon (for mill, factory, or manufacturing employers), or Puerto Rico. Seyfarth can advise on the particulars of these laws if needed. What methods can managers use to help control overtime costs for employees moving from exempt to non-exempt (i.e., reclassified employees)? Non-exempt employees are required to obtain authorization before working any overtime. Recently reclassified employees may need to be reminded of this fact from time to time until they get into the habit of monitoring their work hours and forecasting when overtime hours may be necessary. If a non-exempt employee works unauthorized overtime, this time must be paid. However, the employee may be disciplined for failing to follow company policies requiring pre-authorization before working overtime. It is important to make clear to the employee that, according to company policy, it is their responsibility to obtain prior approval to work overtime and to accurately record all hours they work, including overtime hours that they work without pre-authorization. If a manager finds that there are still concerns about controlling overtime costs and ensuring accurate timekeeping habits after implementing these suggestions, they should consult with HR and/or Legal to determine whether there are other solutions. A manager may never instruct an employee not to record hours worked. If a manager were to instruct an employee not to record time, or merely suggest it, that manager would be subject to discipline, up to and including termination, for such conduct. Further, the company prohibits retaliation against an employee who reports such a violation.
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