"Judge a man by his questions rather than his answers" - Voltaire
"There is nothing noble in being superior to your fellow men. True nobility lies in being superior to your former self" -Hemingway
Turns out I was wrong, on this piece (to make myself feel a little better: I am still correct that exempt employees typically have more flexibility from employers)
Based on this website - and these were a lot of the problems I saw with it, so I can't believe employers actually do it... It is just a bomb waiting to happen.
Why I Don’t Like “Non-Exempt Salaried” Arrangements | Payroll Experts
Don’t do it. It’s a trap. No, I’m not saying that your employees are trying to trap you. What I am saying is that sooner or later the nature of non-exempt salaried arrangements often leads employers to inadvertently violate the Fair Labor Standards Act (FLSA).
From my experience, working for various companies, in various fields, as a salaried worker for the last 15 years.
And restaurant management was even worse. 20 minute lunches would be a dream to many managers in food service.
This a response to an existing problem.
Employers cut payrolls during the recession. The amount of work that needed to be done was not reduced. It fell to the salaried employees (mostly managers, who, at the time, qualified for executive exemption) to take on that burden. The number of hours they worked increased exponentially. PLUS. They were doing the jobs of their hourlies...more than executive or administrative duties. Meaning, they now were no longer eligible for executive exemption of OT.
At first, no big deal. Everyone did their part to survive. It was understood that this was the needs of the business. But in recent years, as wages remain frozen, mid level bonuses still in hiatus, payrolls still slashed, and mid managers still burning the candle on both ends for their employer...but corporate profits and profit margins soaring, executive bonuses and other compensation setting records...the anger built. Lawsuits were filed. Class actions. All across America, managers are suing for lost OT compensation as a result of no longer being exempt due to not having any staff. My company alone is now facing it's THIRD class action in 5 years from mid managers over this same subject.
Frankly, most of us don't WANT to be made hourly...we just want our staff back. Pay them...or pay us.
This attempt by the current administration seems to be an effort to fix the issue on a broader scale without having to settle suit after suit after suit.
Sadly, it's not addressing the real. Which is, despite record busting profitability, companies are staying the course of slashed payrolls. I have my OPINIONS as to why this is, as I'm sure all of you do as well.