Assignment Task:
A review of the various jobs at Level 2 indicates that some of the jobs are classified as non-exempt (eligible for overtime pay), while others are classified as exempt. In the last few months, you've received several complaints from individuals in some of the positions classified as "exempt" that they've been working a significant amount of overtime. They've complained that some colleagues in other departments received compensation for the overtime they work.
When you check the job descriptions of some of those who are complaining and examine the regulatory guidelines for exempt status, you decide that the jobs should be classified as non-exempt. However, you also calculate that the employees would be owed approximately $10,000 in overtime pay for the last year alone. You see several options for how to proceed:
Reclassify the positions retroactively: Pay the employees $10,000 for overtime worked in the past year.
Reclassify the positions going forward: Tell the employees they will now start getting overtime pay for hours over 40 per week.
Keep the positions "exempt": Tell the employees, that as Level 2 employees, they are not considered hourly employees. As supervisors, they have greater responsibilities as well as rights and privileges that make their "salaried" positions exempt from overtime pay.
Ignore the complaints: They'll go away or start complaining about something else next week.
What should you do? You may select only one option from those given below.
Watch Video:
1. Reclassify the positions, and pay $10,000 in back overtime.
2. Reclassify the positions, and pay overtime going forward.
3. Keep the positions exempt.
4. Ignore the complaints.