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May 24, 2016In the News

Quick quoted in "Newly Nonexempt May Embrace Overtime Rule"

SHRM

Partner Mitchell W. Quick was quoted in the Society of Human Resource Management (SHRM) article "Newly Nonexempt May Embrace Overtime Rule " on May 24, 2016.


Newly Nonexempt May Embrace Overtime Rule
Updated regulation could mean either more pay or fewer hours for millions of workers

Load-Shifting

Formerly exempt employees who were accustomed to working as many hours as needed to finish a job may find that they can’t get all their work done in a 40-hour week. The work that’s left undone, then, may fall to those who remain exempt.

“Employers and managers are in an especially precarious situation here,” Lindquist said. “They’ll still be held accountable for maintaining prior work output without a material impact on cost. So it’s likely that work shifts to those who can do it without extra pay. That’s likely to result in animosity, but the victims of that animosity probably won’t be the newly made nonexempt employees, but rather the organization. People tend to criminalize the faceless organization, rather than the person they sit next to.”

Brantner said managers will simply have to start making choices.

“Employers will have to figure out whether it’s better to burn out their exempt staff, pay some current nonexempt workers overtime, or hire new exempt or nonexempt workers,” she said. “The companies that figure out this mix to empower their employees … will thrive. Those that shift unreasonable work burdens to a different set of humans will not.”

Mitchell W. Quick, an attorney with Michael Best & Friedrich LLP in Milwaukee, Wisc., said managers should consider rewarding exempt workers who pick up extra work, perhaps with small raises, productivity bonuses, more time off or recognition.

"If exempt workers are clearly working more hours due to the company not wanting non-exempt workers to work overtime, then the company could offer exempt employees bonuses or other additional compensation on top of their salary," he said. "As long the company pays the required minimum weekly salary, then paying additional compensation does not cause an exempt employees to lose their exempt status."

To read the full article, click here.

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