proposes a new salary level for purposes of exemption from overtime, there is also a possibility that the “duties” test may be revised as well. Such a change would require extensive analysis for its justification and that makes it less likely that a change would be proposed. There are obviously more significant issues confronting the Trump administration on all fronts. However as noted, once a rule is proposed but not yet effective, it might be quite beneficial for employers to carefully review the job functions of all their salaried employees. This review should be more substantial than simply identifying which exempt employees currently make less than $33,000 per year or whatever the new salary threshold may ultimately be. Considerations that should also be examined include the number of hours potentially affected exempt employees routinely work, possible salary compression issues (comparison with other salaried positions) if the salary is increased, and the potential effect on incentive payments or similar bonus arrangements. Employers should be
About the Author
Richard D. Alaniz is a partner at Cruickshank & Alaniz, a labor and employment firm based in Houston. He has been at the forefront of labor and employment law for over forty years, including stints with the U.S. Department of Labor and the National Labor Relations Board. Rick is a prolific writer on labor and employment law and
conducts frequent seminars
to client companies and trade associations across the country.
Questions about this article, or requests to subscribe to receive Rick’s monthly articles, can be addressed to Rick at (281) 833-2200 or
ralaniz@a-c-law.com.
equally cognizant of workplace morale. Simply re-designating previously exempt employees as non-exempt to avoid a salary increase can have serious negative workplace effects. First, it is likely that some employees will view this as a demotion. Second, previously exempt employees could lose work schedule flexibility, benefits that are
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December 2018 ❘ 43 ®
provided only to exempt employees, and perhaps equally important to many, their perceived status in the workplace. By carefully considering all these factors, you may be able to avoid the misclassification challenges that some employers face when an exempt status is questioned, or a new salary threshold is implemented.
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