Hello, Evil HR Lady!
I was wondering if you could explain something to me. My job was recently reclassified from exempt to non-exempt. I understand the technicalities of it. What I don’t understand is the real implication.
I’ve never been classified as non-exempt, not even years ago when I was entry level (well, as a kid in summer jobs, but you know what I mean). My perception was that it was essentially for non-professional positions. If it was a positive classification, I have no doubt management would include themselves. I’ve hunted online, but everything I’m finding discusses the issue from the employer’s point of view. I want the big picture. What are the pros and cons of this from the employee’s perspective?
First of all, whether or are exempt or non-exempt is based on the Fair Labor Standards Act. For whatever reasons, your company feels like your job doesn’t meet the requirements to be classified as exempt.
You didn’t mention what you do, so I’m going to assume that your classification is correctly identified as non-exempt. For jobs that are on the border between the two classifications (which yours probably is, since it went from exempt to non-exempt), the company is wise to classify the job as non-exempt. There are no punishments for incorrectly labeling a job non-exempt, but you can get yourself in big trouble for incorrectly classifying a job as exempt.
I’m just going to list one pro and one con of being non-exempt.
- Overtime. Any work more than 40 hours a week and they have to pay you overtime. You take your laptop on vacation and spend an hour working? They have to compensate you for that time. Your boss calls you at home and asks you work questions? They have to pay you. If you are exempt, forget it.
- Mobility. In my experience, it is much harder to get promoted from a non-exempt position into an exempt position than it is to get promoted from a low level exempt job into a higher level exempt job. There is a perception that you lack higher level skills.
What does this mean for you? Hard to say, since I don’t know anything about your job. I do recommend sitting down with your boss and asking to see the criteria that were used to classify your job. If you want to be considered exempt, ask what responsibilities you can take on to be re-classified. It’s doubtful your boss will have a clue, at which time you might want to make an appointment with HR. Keep in mind that your employee relations person might not have a clue either. In that case, you need to find out the person in compensation who made the decision.
Of course, if you work for a small company, that may well be the same person.