Question: What should employers do to prepare for the anticipated January 1, 2020, effective date of new DOL white-collar exemptions?

Answer: On March 7, 2019, the U.S. Department of Labor (DOL) announced a proposed rule to update and revise Fair Labor Standards Act (FLSA) white collar exemptions by raising the salary level for an exemption from $455 per week ($23,660 annually) to $679 per week ($35,308 annually, among other changes.

The rule is expected to be adopted and become effective January 1, 2020. While it’s too early to make any actual changes in response to the proposal, it’s a good idea to start preparing now so you’ll be ready if it becomes law, as experts anticipate it will.

• Analyze cost impacts. You can begin to determing which employees are classified as exempt and ear $35,308 per year or less. Estimate the increased costs of either increasing their salaries to $35,308 per year or reclassifying the employees as nonexempt and paying overtime when they work more than 40 hours per week (or overtime hours worked based on your state’s overtime laws.) Again, hold off on any actual changes until the proposal becomes effective.
• Review job descriptions. Take a look at your organization’s job descriptions to ensure that they are accurate for the work that the employees actually perform. Update as needed. Review the classifications as exempt or nonexempt based on the “job duties test” as defined by the DOL.
• Forecast overtime. Talk with the impacted employees and their managers to get an estimate of how much overtime per week they actually work.
• Review your overtime policies. While employers must pay overtime per federal and state laws even if the overtime is not authorized, employers can limit the amount of overtime allowed and provide disciplinary action to employees who fail to follow policy.
• Measure productivity. Now that some exempt employees may be reclassified as nonexempt, ensure that the extra hours worked result in measurable productivity. Many exempt employees did not track hours worked previously and may have worked longer hours when not absolutely necessary. Since that time will now be compensable time, employers should ensure that the overtime is warratned based on business demand.
• Review meal and rest break rules. Those employees who will be reclassified as nonexempt will be required to comply with state or company mandated meal and rest break requirements.
• Review employee communications regarding plocies, the enforcement of such policies, and how you will communicate these changes to those employees who will be affected by the change in status.

Q&A provided by ThinkHR, powering the UST HR Workplace for nonprofit HR teams. Have HR questions? Sign your nonprofit up for a free 30-day trial here.

Nonprofit employers have been dealing with employee burnout for some time now but knowing what factors to focus on can go a long way in prevention. It’s a crisis that can trigger a downward spiral in both the individual’s performance as well as the organizations’ and can end up costing thousands of wasted dollars.  

Job burnout is a special type of work-related stress and one that has long been lacking official recognition even though it has nearly become an epidemic—until now. The World Health Organization (WHO), recently identified workplace burnout as an “occupational phenomenon” that may require medical attention. They state, that burnout is a syndrome conceptualized as resulting from chronic workplace stress that has not been successfully managed and characterize by three dimensions: feelings of energy depletion or exhaustion, increased mental distance from one’s job or feelings of negativism or cynicism related to one’s job, and reduced professional efficacy.  

Employees experiencing burnout at work are often physically, mentally and emotionally exhausted from the job. They are more likely to take frequent sick days, exude more negativity, reduce team moral and worse, start looking elsewhere for employment opportunities. They become fixated on problems rather than growth opportunities or development. Now, more than ever before, we’re doing more with less, working longer hours, taking fewer breaks and less vacation days. Burnout is a serious workplace concern and is detrimental to the health of everyone involved—managers, co-workers, loved ones and friends.

There are often many factors that cause job fatigue but managers play an important role in helping to avoid this occupational phenomenon. Employees who trust their managers are more likely to experience meaningful work. Below are some key strategies for building that relationship and reducing employee burnout:

1. Check-in daily – we’re not talking about a daily 30-minute meeting but a simple “Good Morning”, “How was the school play last night” or “Any plans for the weekend”. These brief interactions can make a huge impact on someone who may be struggling.

2. Listen actively – being a good listener when an employee comes to you with an issue is a critical step in earning their trust and developing a solid bond.

3. Make time for team-building – creating a team that is unified provides another line of emotional support for an employee who is struggling. Co-workers often understand better than anyone else the struggle of being burnt out.

4. Encourage break time – everyone needs to take a break to stay connected and focused so ensure your employees are taking the time to recharge.

5. Make work purposeful – being connected to your mission isn’t enough so give your employees more reasons for making their job feel important.

6. Always say please and thank you – two very simple terms that are extremely underused in the workplace. Showing appreciation and respect can go a long way.

7. Put the right people in the right place – make sure your employees have the opportunity to do what they do best so you get the best of what they have to offer and they feel fulfilled.

If you don’t address the causes of employee burnout in your nonprofit, you’re missing the opportunity to create a workplace environment that empowers employees to feel and perform their best. Employee burnout is no longer just an HR issue, it’s a public health issue and one that can be managed before it even hits. Develop healthy workplace habits that begin with managers who foster positive experiences and ensure you have policies in place that help recognize the triggers before they get out of control.

Question: We hire interns (generally students in their junior and senior years) to do professional work for clients alongside, and under the supervision of, our professionals. They earn at least twice the salary test wage of $455 per week and are paid on a salary basis. Are they eligible for overtime pay?

Answer: Maybe. The Fair Labor Standards Act (FLSA) and state wage and hour laws exempt certain categories of employees from overtime. These interns may qualify as exempt employees under the “learned professional” employee exemption.

To meet for the learned professional employee exemption and be exempt from both minimum wage and overtime pay, all of the following criteria must be met:

1. The employee must be compensated on a salary or fee basis (as defined in the regulations) at a rate not less than $455 per week.
2. The employee’s primary duty must be the performance of work requiring advanced knowledge.
3. The advanced knowledge must be in a field of science or learning.
4. The advanced knowledge must be customarily acquired by a prolonged course of specialized intellectual instruction.

See WHD Fact Sheet #17D: Exemption for Professional Employees Under the Fair Labor Standards Act (FSLA) for additional information explaining the learned professional exemption.

If the employees meet the exemption requirements, they would not be entitled to overtime. If the employees do not meet the requirements, it still may be possible that they qualify under one of the other white collar exemptions.

Q&A provided by ThinkHR, powering the UST HR Workplace for nonprofit HR teams. Get your free 30-day trial here.