Changing salary class

During our initial conversion into Lawson, our consultant told us we should set all of our positions as an Hourly Salary Class, and use the Exempt from Overtime flag and pay plans to pay overtime or not. Now, one of our process levels is considering moving most of its employees to the Salaried Salary Class.

I don't see a huge issue with the move (although it will require careful planning), but to complicate things, they also want to start using a Salaried Non-Exempt pay plan.

Of course, the PL has been promised that I can get this set up and working by January 1, forgetting of course that Open Enrollment/new benefit set up, our upgrade to V10, and the new ACA forms/requirements are also happening right now. So.

Does anyone have any experience with or advice on changing large employee groups from hourly to salaried? And is anyone else using a Salaried Non-Exempt pay class? Did you run into any issues?

Thank you in advance!

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Comments

edwin-valle

I only have experience in a project we did to move people from SALARY to HOURLY and using the EXEMPT. This sounds like where you started. I have steps we took to do that if it would be any help. But it sounds backwards.

marty

Backwards is great. If you would be willing to share you can email me at Jennifer.baumgartner@life-scienceinnovations.com

Does anyone out there have a Salaried Non-Exempt pay plan/pay code set up?

Thank you Deb!

unknown

I work with Deb Roberts and was involved in the project to change our salaried employees to hourly. I don't recommend changing employees to salaried unless you have to. If they have less than a full pay check (new hire or termination) or if you need to pay out leave plans on retirement it's a big issue and difficult to process. We also have salaried employees that are public safety officers that receive special pay and I had to manually calculate the pay for each date worked. Our benefit statements we produce annually are a lot easier, as well as are queries for departments. I wish we had never went live with exempt employees with a salary; we should have had all employees as hourly. Hope this helps!

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edwin-valle

I agree with Jennifer that said that she had issues with SALARY employees. However, I will look at my notes at how we changed from SALARY to HOURLY and share with you in case you need to go forward. Give me a day. Deb

marty

Thank you Jennifer and Deb. I've successfully talked them out of the change. They do, however, want to pursue Salaried Non-Exempt. Does anyone else have this classification, and tips/strategies to share?

Thanks!

edwin-valle

I really don't have any experience with Salaried, Non-Exempt

unknown

I was wondering how other Lawson users are dealing with position set up in regards to the new salary threshold? We currently have position where one employee meets the threshold, but the other does not due to the years of service and experience. We are not wanting to reclassify the position. Curious to see if two positions are being set up one hourly one salary?

cockrell

We are also trying to develop a solution for these types of situations given the new FLSA rules. I would be very interested in learning how other organizations are addressing this.

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marty

Hi Monica - we use position management, and have historically set up exempt and non-exempt job codes/positions for these types of scenarios. Our HR Director and Compensation Analyst are looking right now at whether or not we should continue to do this, or come up with a new strategy. I will share with this thread if they (along with our employment law attorney) come up with a different solution.

unknown

I haven't had a chance to respond to this thread, but I'm thinking it would probably be in the best interest of your organization to have one position rather than 2, especially if salary is the only differentiating factor. First, it's hard to keep up with; second, the DOL may frown on that (and unfortunately, I'm speaking from some relatively recent experience of having to "voluntarily" audit every single exempt position).

We have used PA02 for years and drive all default fields from the PAPOSITION table. We have created audits that we run prior to every payroll to ensure that anyone in an exempt position (whether full time or part time) is making at least the minimum weekly threshold. If they do not, we override their HR11 record with the hourly fields and ask them to start clocking in and out. If we get to a point that almost everyone is hourly in an exempt position, the organization looks at if the position really should stay exempt and may change the position from exempt to non-exempt.

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