The disadvantages that will be inevitable for the company are incurring regulatory familiarization costs, adjustments costs and managerial costs just like the Department of Labor anticipates. We will incur regulatory familiarization costs since our Human Resource department along with managers need to become familiar with the requirements of the rule. It will take time for everyone to become familiar and adjust to these new changes. Providing a training for the whole Human Resource department will very beneficial because HR can then train managers that way when employees have any concerns, their managers are able to help them. The adjustment costs the Company will suffer are based on notifying employees of the policy changes, determining worker’s new exemption statuses, and updating our payroll system. These adjustments costs are not only costly, but they can be time consuming for the Company. Lastly, we will incur managerial costs because “hours of workers who are newly entitled to overtime may be more closely scheduled and monitored to minimize or avoid paying the overtime premium” . If we want to keep costs down for overtime, it would be a good idea for managers to closely supervise that all employees are doing their work productively. Besides the monetary drawbacks, this will affect our employee morale. Our employees are going to be worried about their hours and possibly layoffs. They will also be concerned of whether they are classified correctly. Low employee morale can be destructive to our company’s setting and can lead to dissatisfaction, poor productivity, absenteeism and even turnover. That is why I can’t stress enough how important is for the whole management team to know about these changes and be ready to answer the questions of the
The disadvantages that will be inevitable for the company are incurring regulatory familiarization costs, adjustments costs and managerial costs just like the Department of Labor anticipates. We will incur regulatory familiarization costs since our Human Resource department along with managers need to become familiar with the requirements of the rule. It will take time for everyone to become familiar and adjust to these new changes. Providing a training for the whole Human Resource department will very beneficial because HR can then train managers that way when employees have any concerns, their managers are able to help them. The adjustment costs the Company will suffer are based on notifying employees of the policy changes, determining worker’s new exemption statuses, and updating our payroll system. These adjustments costs are not only costly, but they can be time consuming for the Company. Lastly, we will incur managerial costs because “hours of workers who are newly entitled to overtime may be more closely scheduled and monitored to minimize or avoid paying the overtime premium” . If we want to keep costs down for overtime, it would be a good idea for managers to closely supervise that all employees are doing their work productively. Besides the monetary drawbacks, this will affect our employee morale. Our employees are going to be worried about their hours and possibly layoffs. They will also be concerned of whether they are classified correctly. Low employee morale can be destructive to our company’s setting and can lead to dissatisfaction, poor productivity, absenteeism and even turnover. That is why I can’t stress enough how important is for the whole management team to know about these changes and be ready to answer the questions of the