Pub.1 2019-2020 Issue 2

Florence Miller, or “Flo”, grew up in Utah County, attended Brigham Young University and later transferred to University of Utah. She graduated with a Bachelor’s of Science in Nurs- ing and practiced as a Registered Nurse for 5 years. Ms. Miller loved being a nurse, but always had the goal of studying law. In 2000, Ms. Miller attended law school at the University of Toledo College of Law and graduated in the top 10 of her class. Ms. Miller started her career as a lawyer at a Clark Hill, PLC, in Detroit, Michigan. For the past 13 years, Ms. Miller has practiced in Utah. She has been a shareholder at Van Cott, Bagley, Cornwall & McCarthy and Prince, Yeates & Geldzahler. with fewer than 25 employees have to pay overtime to employees earning more than $49,920. Companies with more than 25 employees have to pay overtime to employees earning more than $54,080. Other states that have their different limits than the federal one include Alaska, Colorado, Maine and Nevada. New York not only has different rules for the state than the federal government; three of its counties also have different rules than the rules for the state as a whole. Utah, unsurpris- ingly, adopts the federal law and stops there. As an employer, what are your options if you have newly nonexempt employees because of the increase? You can: • Give them a raise to make them exempt again. If their wages are close to $35,568, a raise might be cheaper than hiring more employees or paying them overtime. • Limit or ban overtime. However, doing either is likely to make anyone angry who has been relying on overtime pay. • Pay overtime; that is, pay employees who work overtime 1.5 times their regular rate of pay for any hours worked beyond the 40 hours in a week. If you decide to give nonexempt employees a raise, the best way to do that (if you can afford it) is to give everyone a raise. Across-the-board raises would be an especially practical solution for companies that will be spending substan- tially more money paying for overtime or hiring additional people to do the work that still needs to be done once overtime has been restricted. After all, everyone benefits from a pay raise and nobody will be angry about being passed over. It will also close the wage gap and help you avoid violating wage-related restrictions. You have probably talked with employees about these changes already. If you haven’t, then you need to do so as soon as possible, preferably as a group. Include a question-and-answer period. Communication is a key way to keep the transition as smooth as possible. During the meeting, talk to employees about the following: • Job flexibility (that is, where and when they are allowed to work) • Procedures for implementing overtime • Redistribution of tasks to make compliance with the new rules possible • The overtime policy Nonexempt employees generally have less flexibility in their work because flexibility makes it harder to track their time. Irregular hours at multiple locations are a challenge. That challenge is something to keep in mind as you consider how to adjust the rules at your place of work. If employees have become nonexempt, you will also need to train them about how to track their time worked. Doing so might involve buying a technology package to track time and attendance. Being positive is also an important part of making the change. Just as some people get attached to overtime pay, other people consider being exempt to be something that gives them higher status. They need to understand that the changes are federally mandated, do not affect your perception of their importance, and (if you’ve decided to pay overtime) do not mean that they’ve been demoted if they can now earn overtime pay for their extra hours worked. They may feel less upset once they realize the change could mean more money in their paycheck. The most complicated aspect of the new rule, of course, is determining whether an employee is exempt or nonexempt. If you have any questions about that or other issues related to the change, this would be a good time to talk to your attorney or to find a legal professional to consult. Innovation, Leadership, Performance. At Occidental, our top-performing teams use innovative techniques and technologies to maximize oil and gas production. Visit Oxy.com to learn more. Utah_Petroleum_Association_Quarterly_7.5x4.6.25_Dec2019.indd 1 12/5/2019 10:42:53 AM 21 UP DATE