Archive for the ‘Uncategorized’ Category

4 Ways Managers Can Help Improve Employee Performance

Tuesday, January 3rd, 2017

When a manager says “meet me halfway,” what do they mean?

Halfway is never the goal in our work or personal lives. We want 110 percent from each other, right?

In the workplace, meet-me-halfway is shorthand for “I have to decide if you are worth more investment of my time and energy, and if you do not meet me half way, I have my answer.”

Poor performers are so for a variety of reasons. Putting problems clearly on the table, along with solutions, is difficult. Meet-me-halfway can be a useful clarifying tool.

Managers may use these four questions to decide whether a poor-performer will meet them halfway:

Have you contributed in any way to these poor results? An employee who says they have no part to play in their poor work is unlikely to do the things needed to improve. Giving a chance to acknowledge fault is a good way to advance a stalled conversation about improvement. Surprisingly, there are poor performers who will deny any part in the problem. In that case, you have your answer and it may be time to move on.

What are you ready (and able) to do differently, starting now? This question allows a more detailed conversation around specific changes which must be made. Forcing an employee to generate their own list (rather than seeking yet another agreement to your list) is better at this stage. It shows you if they are listening if they understand what good work looks like and if they care. Answers such as “I guess I just need to do what you ask me to do” are not good. On the heels of several performance discussions, and this meet-me-halfway conversation, lazy or passive responses show you do not have their attention or commitment.

What can I do differently to help you succeed? If you get an admission of some fault, and that fault is reinforced by a thoughtful description of the ways behaviors must change starting today, it is time to seal the deal with a genuine offer of your help. The offer does two things. It firms up the commitment to change and gives you a measurement tool for the coming days/weeks.

How will we both know you are meeting performance goals? This is the time to clarify ultimate expectations and timelines. Performance cannot stay at half-way; that was just a place to meet and recommit to something much better. The timeline will depend on the performance gap, the failed efforts to date, the perceived chance for success and such. Whatever that timeline and performance definition, they should both be very clear.

Employees who know or sense their manager is dissatisfied with their work should bring it up. “How am I doing?”, “What can I do to get better at this role?”, “What do you see as the difference between my work and the very best work done in this area?” Make the topic of your performance a welcome and natural one for you both. You will both benefit.

Bruce Clarke serves as CAI’s President and CEO, and has been with CAI since 2001. Bruce practiced labor and employment law with the national labor law firm of Ogletree Deakins for 18 years. He is listed in The Best Lawyers in America and was selected as one of North Carolina’s Legal Elite by Business North Carolina Magazine. Bruce is 100% committed to helping companies maximize employee engagement and minimize workplace liabilities.

How Effective is Succession Planning in your Organization?

Wednesday, December 28th, 2016

Succession is defined as the right, act, or process, by which one person succeeds to the office or rank of another.

How is the succession of your organizations’ talent happening?  Do some of your employees have implied “rights” to specific positions? Does their “time in grade” entitle those who have “paid their dues” to simply move into a vacated senior position regardless whether or not they are the most qualified or possess the most potential?

Does your organization use the “replacement” method of succession whereby a successor is simply chosen from a ‘short list” of employees that a select group of managers have compiled behind closed doors?

Or does your HR organization provide a collaborative process that brings leaders together to discuss designated positions and relevant potential talent as possible candidates? This of course, is the most effective and desired state.

If your succession process is not of the “desired state” mentioned above, then you are missing out on an incredible opportunity to enable your
business as well as potentially putting your business at risk by not filling opportunities with the top talent within your organization.

How do you get started?  Here are the first 3 steps:

  • As an HR business partner, you first need to be sure you completely understand your business and its current / future strategy and goals.
  • You then need to understand your organization’s key positions that drive and impact your business.  This includes not only key leadership roles but also positions with specialized skills that are challenging to find and or develop.
  • Next, and most importantly, you need to get buy-in from your GM/CEO, key leaders, etc. in the development and implementation of a succession process for your business. Although HR should own this process, succession is not a standalone HR “project” and needs to be done collaboratively and with the support, understanding, and buy-in of senior leaders and other key stakeholders.

Many small and medium-sized businesses fall into the trap of not implementing a succession plan, just like many people put off creating a will. While there are many other key considerations and variables that go into a developing a succession plan, don’t look at the process as insurmountable. CAI can help bring order to the process and partner with you along the way.

Rick Washburn leads the Advice & Resolution team at CAI. In his role, he advises executives and HR professionals on strategic and organizational issues, tackling subjects ranging from employee engagement to talent management. With his 25 years experience in HR management, Rick is uniquely poised to advice and lead businesses to successful HR strategies.

Avoid Workplace Drama and Spend More Time on Ideas

Thursday, September 1st, 2016

The following post is by Bruce Clarke, CAI’s CEO and President. The article originally appeared in Bruce’s News & Observer column, The View from HR.

“Management by walking around” is a time-tested method to stay connected with the real work of an organization. When you listen, learn and create unstructured conversations, everyone is better informed.  Sometimes problems are solved or confusion clarified on the spot.Workplace Communication and Gossip

There is another free-form type of conversation between managers and employees which is not productive: management by gossiping around.

Workplace gossip is generally rumor or exaggeration about others, especially about their behaviors. It can relieve stress, and deflect or assign blame.  It might just be a way to make the gossipers feel better about themselves.

I wish it was uncommon, but we see evidence that managers gossip with employees too often. Whether a misguided attempt to create a relationship, or just blowing off steam, gossip is harmful.

When managers gossip with employees, about employees, or about other managers, several bad things happen.

Loss of Respect

The gossiping manager loses every time. Employees hold managers to a higher standard of behavior than their own peers.  A manager who gossips cannot be trusted with personal details and private information.  A manager who gossips will gossip about you!  What does the manager know about you that could be embarrassing or misunderstood?

Loss of Influence

Managers get things done through a combination of formal authority and informal influence. Sometimes unilateral decisions must be made, but real advances and engagement happen in the influence zone.  Gossiping managers lose the high ground that provides a foundation for influence.  Managers who gossip trade a momentary rush for long-term loss of effectiveness.

Loss of Focus

Gossip is idle conversation, not problem solving or relationship-building. Gossiping managers would rather talk about an employee who may be part of a problem than resolve that problem.  Gossip is easier than real work and it prevents true progress.

Loss of Opportunity

Employees with real work problems will not come to gossiping managers for help. Why reach out to a manager who gossips about members of the team?  Managers trying to be “one of the peeps” by joining these high calorie/low nutrition conversations hurt their own chances to learn about real issues.

Future Limits

Finally, gossiping managers put a lid on their own careers. The only thing worse than a loose-lipped manager is a senior leader who talks trash.  A fish rots from the head down and senior leadership sets the tone.  Good leadership will not ask bad leadership to join its team.

Employees living with a gossiping manager have choices to make. Start by avoiding gossip.  Silence is a good response to inappropriate comments.  Even better is a question:  “If that is true, what can you and I do to make the situation better?”

Employees suffering with gossiping teammates might be even more proactive: “Gossip will not make anything better.  What positive steps can we take?”

An old proverb applies: “Great minds discuss ideas, average minds discuss events, small minds discuss people”. Spend more time on ideas and events.

CAI can help your organization grow and succeed by developing your most important asset…your people.  We offer an abundance of learning options and specialize in management development, HR and professional development.

Bruce Clarke c
Bruce Clarke serves as CAI’S President and CEO, and has been with CAI since 2001. Bruce practiced labor and employment law with the national labor law firm of Ogletree Deakins for 18 years. He is listed in The Best Lawyers in America and was selected as one of North Carolina’s Legal Elite by Business North Carolina Magazine. Bruce is 100% committed to helping companies maximize employee engagement and minimize workplace liabilities.

CAI Celebrates Big Move with Open House Bash

Tuesday, August 9th, 2016

CAI_Open_House_CollageCAI, Human Resources partner to 1,100+ North Carolina member companies, celebrated its new Raleigh location at 3150 Spring Forest Road, #116,
with a ribbon cutting and open house event. “After 32 years, we needed more parking for class participants, an open floor plan suitable for team collaboration and space for our state-of-the-art training facility,” stated Bruce Clarke, CAI’s CEO.

More than 220 CAI members, local business leaders, and special guests were in attendance for the big event which was held on August 8.  Guests mingled and enjoyed hors d’oeuvres, wine, and live jazz while touring the spacious, modern facility. Popular guest speaker and author of The Freak Factor, Dave Rendall, delivered a motivating message on “Initiating Change and Inventing the Future.”

Storr Office Environments, Vision Contractors, and Little Design were acknowledged for turning CAI’s vision into reality.  Included as an integral part of the office transformation team were CAI member companies: Precision Walls, Strategic Connections, Stephenson Millwork and Atcom Business Technology Solutions.

Clarke and CAI board member, Randy Neuhaus, CEO of S&ME presided over the ribbon cutting ceremony and champagne toast.  After a warm round of applause, members congratulated CAI on their long-awaited new facility. “I love the new space,” said CAI member Sean Walsh of Red Hat, “it’s really great to see a company make this kind of investment in their members as well as their employees.”

CAI is a trusted resource for HR, compliance and people development. With locations in Raleigh and Greensboro, CAI is a membership-driven organization that helps North Carolina employers maximize employee engagement and minimize employer liability through human resources and management advice, training, survey data, public policy advocacy and consulting services. For more information, visit www.capital.org.

How to Develop Your Employees by Providing Feedback

Thursday, July 28th, 2016

Part of a manager’s job is to help grow and develop talent for the organization.  And, most employees want to know how they are doing.  When managers take the time and effort to comment on an employee’s work, they are helping shape not only that employee, but the organization as well. But, when managers fail to provide feedback, they actually impoverish the individual as well as the organization. Performance-Evaluation-Form-Feedback

Some managers hesitate to give feedback for a couple of reasons:

1 – They may feel that giving positive reinforcing feedback to employees will “spoil” them or that it is not necessary since the employees are just doing the job for which they are being paid.

2 – They may dread the awkward conversation that sometimes happens when they must give corrective or improvement feedback, so they say nothing and hope the situation will improve.

At CAI, part of our mission is to replace fear with action.  We share with our classroom participants a simple formula for doing so.  It’s called the BIT.  BIT stands for behavior, impact and tomorrow.  It’s a handy way to remember that feedback, regardless of whether it is reinforcing or corrective, should have three elements:

  • Behavior – talk to the employee about exactly what he or she has observed or overheard doing or saying.
  • Impact – let the employee know the impact (again, whether positive or negative) that his/her behavior has on the customer, their colleagues or other stakeholders.
  • Tomorrow – finally, explain that you wish for the employee to continue exhibiting the positive behavior and encourage him/her to do more of it OR let the employee know that a behavior change must take place within a given time period.

Examples:

Positive, reinforcing:

  • Jason, I heard you speaking to an upset customer in the lobby this morning.  He sounded pretty angry.  You kept calm and did not raise your voice.  Instead, you asked him for more details and just listened.
  • The impact of your composure was to not only calm our customer down, but to preserve his business with us.  I feel confident that he intended to close his account when he first came into the lobby.
  • Jason, we appreciate your professionalism immensely.  Next week, we have a new employee starting in Customer Service.  Would you please make some time to let her shadow you on some of your customer service calls?

Corrective, need for improvement:

  • Marcy, yesterday I saw you turn your back on our auditor who was waiting for the key to the conference room. It was clear you saw her standing there, but you ignored her until she had to ask you again for the key.
  • The impact of this behavior is that in addition to being impolite, you have sent a message of indifference to the auditing staff, who is here trying to help us.
  • From tomorrow on, please make it a point to greet the auditors when they arrive and ask them how you can assist them.  Please extend the same courtesy to them as you would to our customers.

The BIT statement is a powerful tool that does not diminish the employee in any way.  It does not judge someone’s character or intent; it merely states the facts and their impact and further clarifies the manager’s expectations.

Let CAI help you optimize your management skills.

lindataylor

Linda L. Taylor, MS, SPHR, CCP, is a Learning & Development Partner at CAI. She brings more than 20 years of human resource and organizational experience to her role as a trainer. Linda is responsible for teaching CAI’s various courses, including The Management Advantage™, to train and educate members and clients. Her extensive experience as manager, consultant, and educator provides her with a unique skill set that allows her to effectively partner with member organizations and work to positively impact their business results.

 

Fixing a Broken Performance Management System – Part I

Tuesday, July 5th, 2016

As a manager, few things are harder than delivering honest performance feedback to an employee.  Of course giving bad news isn’t supposed to be Performance-Review-Chalkboardfun.  Some managers avoid giving bad news altogether hoping performance improves on its own.  Others sugar coat the news to the point that the employee can’t see the problem.  Then there are those managers who just “tell it like it is” with no filters or tact.  They may succeed in getting their point across but at a cost.  

Many managers struggle equally at giving good performance news.  Some pour on the kudos so much or so generically that employees aren’t sure what specific actions are being praised.  And then far too many other managers don’t take the time to give any feedback at all, usually because they are so “busy.”   It’s no wonder why HR professionals and executives alike regularly bemoan the state of their performance management process.  So it seems that the only people that like how performance management is practiced at many companies are those slackers who aren’t being appropriately addressed …

At what cost? Employee underperformance is at epidemic proportions in some companies.  On average, U.S. managers waste 34 days per year dealing with underperformance.  Tolerated underperformance is also a leading reason top performers, who have to work harder to cover the slack, leave for greener pastures.  Eventually this underperformance affects customers and that of course affects the top and bottom line.  Don’t believe me, think of how frustrated you are as a customer when you’re at the hands of an underperforming employee.  How does that employee’s behavior affect your future buying patterns? 

The Cure.  Fortunately the cure for poor performance management is simple to understand and it doesn’t hurt.  And to be clear, the problem isn’t with whatever appraisal form you use. I’ve never seen an appraisal form that makes up for poor hiring, unclear expectations, infrequent or non-existent 1:1 meetings with employees, poor managers, poor execution,  and so on.  More on the form in next week’s article.

First, most employee performance problems are really hiring problems.  We regularly hire people that don’t fit our culture and then we waste valuable time trying to “fix” them.  I heard it put once, you’re hired [too quickly] for what you know and fired [too slowly] for who you are.  The cure: only hire people that fit your culture.   At this point I normally see executive eye rolling when I speak on this subject.  I realize that “defining your culture” seems like another “squishy” HR thing to a busy executive but the process really can be quite simple.  Minimally take your company values and find people that possess those values.  Of course this assumes we have values, and that we live those values daily.  Applicants either possess the values or they don’t.  This isn’t a 1 – 10 rating kind of thing.  If they posses the value, then take Gino Wickman’s advice in his book Traction and ask yourself for each applicant:  Do they Get it [the role], Want it [to work with you], and have the Capacity [knowledge, skill and capability] to do it (GWC).  I could add twenty more steps for defining your culture, and they probably won’t get you any farther than your values and GWC.

Second, there should be no disagreement over what successful performance looks like at your company. Instead of using out dated and/or generic job descriptions, consider setting clear expectations and measures for each employee that are directly or at least indirectly tied to organizational priorities.  So for example, a typical CFO job description might say “Assure optimum utilization of financial resources through sound forecasting and cash management.”  Alternatively, a success profile would say:

  • Reduce costs by 10% across-the-board to achieve EBIT objectives for the next fiscal year. 
  • Establish cross functional cost reduction teams within three months completing work in 12 months.
  • Within nine months, achieve a 15% price reduction in raw materials.
  • Develop a back-up sourcing plan to ensure cost reduction of $700,000 in year one.

Now imagine you’ve taken the time to establish annual performance objectives like that with each of your employees.  I realize it takes time for the manager.  But think how much easier it would be to measure performance, to deliver feedback.  Think of how much ownership the employee would have over the results.  And think of how much better your company performance would be if all employees were working a similar plan.  Unfortunately, without such specificity, the responsibility rests on each manager to subjectively determine if someone’s performance is satisfactory.  And that is a very uncomfortable place to be and is one explanation for why typical performance ratings don’t reflect reality.

So, hire people that fit your culture and provide crystal clear expectations of success for each employee and you’re well on the way to fixing your broken performance management system.  Tune in next week when I cover more secrets to fixing your broken system.

If you have employees in North Carolina and need help implementing or fine-tuning your Performance Management system, CAI can help with advice, information, tools, templates and more.

HR Lessons From the Garden

Thursday, June 9th, 2016

I enjoy gardening, beautiful flowers, and being in the fresh air outdoors.  As I was weeding my flower bed this weekend, I thought about how the principles relate to HR.  At the time I planted the flowers I bought, they looked beautiful (although they were small and just beginning to bloom).  Over time, instead of growing and prospering, they began to look weak and like they were struggling to survive.  Weeds had crept in the garden, and were draining the nutrients from the flowers.  That is when I thought about the analogy to what can happen in business.  Take a look at what happens from a different perspective.

Recruitment and Selection

Talent_ManagmentWhen you go to the garden shop or farmers market, there are so many beautiful flowers that it is hard to decide which to buy.  What should be considered?   At garden shops, plants have tags that identify what environment they need to thrive: amount of sun, amount of water, heat or cold tolerance.  If you don’t consider the needs of the plant and the environment you will put it in, you won’t get the results you desire.  The same for employees.  It is important in recruitment and selection to understand the needs of the person and what environment works best for them, and to share honestly what your expectations and culture are for optimal results.

Culture

Just as you need to determine the conditions that will help a plant to thrive, applicants need to understand the culture of your company, the management style, opportunities for growth, and communication flow within the company.  Culture fit is very important, and many argue it is most important.  You can teach employees many things but you can’t teach fit.  You can take a thriving plant and put it in a toxic environment and it will wilt and falter.  Interviews should include questions about the position/company/manager thus far that the employee has considered the best and why.  Assessments can also help in determining culture fit.  Someone who is an idea person and wants to contribute and share ideas for process/product improvement will not be happy in a company that is top down management unreceptive to employee input.

Orientation

Once you know the needs of the plant and have purchased it, place it where it can bloom best.  That means providing proper orientation.  It needs proper soil, water, plant food and more attention as it gets oriented to the new surroundings.  Likewise with new employees.  It may be helpful to have an employee assigned to help orient them to where things are, who to go to for various issues, and just to orient them to the day-to-day.  We sometimes forget that things we take for granted everyday will be new and strange and take time to absorb for new employees.  Identify expectations early on.  Employees, like plants, that get off to a good start are more likely to thrive.

Coaching/Training

The work doesn’t end after orientation.  Plants need ongoing attention.  Sometimes plants may need pruning to help them grow better.  Others may flourish and need a trellis to support their growth. Each is unique, just like employees. Supervisors need to be trained to recognize that one size doesn’t fit all.  Some employees may need more guidance in their development.  We need to help supervisors understand the important role they have in recognizing the uniqueness of each employee and giving appropriate feedback, coaching, training, development and pruning.  Sometimes, employee failure can be attributed to supervisor failure; and in those cases, the supervisor should be held accountable as well.

Diversity

Have you noticed that gardens that have different types of plants– various sizes, shapes, textures, and a variety of colors and leaf structure, are more pleasing to the eye than those that are all the same?  Diversity can inspire new ideas.  And since our customers and our world are diverse, we need diversity to thrive.

Life Cycle

Some plants (perennials) come back year after year.  Annuals only last one season, even with the best of care.  Hopefully you have more perennials in your workplace than annuals. But we all have some annuals (sometimes quarters).  Sometimes they just don’t thrive in the environment.  Sometimes we only hire them for a season for projects and then they move on.  In other cases, they grow stronger, develop new branches and flowers and someone else admires the attributes and wants to acquire them.  There is a life cycle for employees.  For some, you may make the decision that despite your best efforts, they are not a fit for your company.  Sometimes, even with your best efforts at describing the job and your culture, and trying to ascertain what the employee has to offer, what they need, and under what conditions they thrive; you determine it was a bad decision.  It happens. Sometimes the beautiful plant that looks healthy and has the most blooms can have underlying aphids (pests) that you can’t see that will eventually destroy the plant.

Keep in mind that even perennials that come back every year need attention: fresh soil, weeding, water, mulch.  Don’t take your perennial employees for granted.  They still need nurturing and opportunities for growth, as well as recognition for jobs well done.

Weeding

And lastly, we all know that a garden will not flourish if is overrun by weeds.  As hard as I try to prevent weeds from even starting, they eventually creep in to the garden starting small.  If I don’t deal with the weeds, or wait too long to start dealing with them, I will have lost many beautiful flowers.  The same holds true at work.  Whether your “weeds” are bad fits, or can’t do the jobs you’re asking them to do, or have lousy attitudes, they will slowly take over and drive out your good employees, much like kudzu.  Don’t let the kudzu take over your thriving workplace.  Avoid the many reasons we find to not deal with weeds at work…lack of time, fear of a suit, trying to be “too consistent,” poor managers, etc.

I hope taking a look from a fresh perspective gives you some inspiration to work in your garden…at home and at work.  For over 50 years North Carolina employers have trusted CAI to be their #1 HR partner.  Learn how we can help you too!

What Employers Should Know About Section 1411 Certifications

Tuesday, May 24th, 2016

The post below is a guest blog from Jay Lowe who serves as Principal, Health & Welfare Consultant for CAI’s employee benefits partner Hill, Chesson & Woody.

The Employer Mandate is perhaps one of the most nerve-wracking parts of the Affordable Care Act (ACA) for large employers: those employing morehcw than 50 full-time equivalent employees, or FTEs. (What’s an FTE? Find out here!) Many large employers understand that they can be fined with a tax penalty if they don’t provide coverage that meets the minimum requirements or is deemed unaffordable for their employees. In the event that coverage does not meet these requirements and is not affordable, employees may be eligible for a premium subsidy when purchasing individual coverage through the government’s healthcare marketplace (the Exchange). This subsidy eligibility is what triggers the penalty back to the employer.

Section 1411 of the ACA establishes the procedures for determining an individual’s eligibility for subsidies from the Exchange. A Section 1411 Certification is the notice to an employer that an employee has enrolled in a qualified health plan through the Exchange and been provided a subsidy. If you are an Applicable Large Employer (more than 50 full-time equivalent employees) that receives one or more of these notices, this could mean that you are facing a penalty from the IRS as part of the Employer Mandate provision of the ACA.

Employers should be prepared to see these certifications and have a plan of action in place once they do. For more details on the Section 1411 Certification, see here.

Dealing, Appealing, and Other Important Things to Know About 1411 Certifications

First, remember that these certifications are not penalty notifications from the IRS. They are simply informational, letting you know that an employee has received a tax credit and named you as the employer as part of their application process. You can expect a formal penalty notice from the IRS to follow; however, the notice will give you the ability to appeal if your health plan does meet all of the Employer Mandate requirements. By appealing, you can potentially stop the penalty process from the IRS.

It is important to educate the employees who will be handling these notices within your organization. This is a new form and something that most will not be familiar with. They need to know what to look out for and be prepared for what to do. If your health plan does meet minimum essential ACA requirements, make sure the employees in question understand that they will need to act quickly to appeal these notices; you will only have 90 days from the date of the notice to file your appeal.

In the event that your plan is not meeting all of the requirements of the Employer Mandate, look out! You’ll probably have to pay a fine. The Section 1411 Certification will alert you to your penalty liability. Only employees who receive a subsidy in the Exchange can trigger a penalty for you, and these notices will tell you exactly who those people are. As a best practice, employers should keep track of what their total exposure could be prior to receiving the notices. Their final liability could be less than what they are expecting.

With the delay of the Employer Mandate reporting requirements, it is likely that employers will not begin to see Section 1411 Certifications until late 3rd quarter or 4th quarter of 2016. That gives you plenty of time to educate your people, prepare an action plan, and learn all about 1411 Certifications!

New Location for CAI Raleigh Office

Tuesday, May 10th, 2016

After 32 years, we have moved our Raleigh office to 3150 Spring Forest Road, Suite 116.  This is 1.2 miles south of I-540, just off Capital Blvd., and cai raleigh office movenear Triangle Town Center.

This move is exciting for us and for you!  We will have plenty of parking for class participants, expanded modern training facilities, and a collegial open floor plan for our staff.  I-540 provides easier access for our guests from the west and east.  The interior layout was designed to meet our growing member service needs and to improve your experience.

We welcome your visit to get a sense how we will serve your class participants.  They will enjoy better break and lunch service options, including outdoor patio areas.  We plan an open house event later this summer.  Watch for details!

Call us at 919-878-9222, should you have any questions.  We look forward to showing you our new headquarters and introducing you to staff!

If you’re not yet a member of CAI, now is a great time!  Find out more about how we can help you at CAI Membership Benefits.

 

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What North Carolina Employers Need to Know About the Proposed Overtime Rule

Thursday, May 5th, 2016

The Department of Labor’s proposed overtime rule would expand overtime pay and raise the standard salary threshold for exempt employees toOvertime Rule $50,440 a year.  Recently, however, there have been rumors that the figure may be even less than that.  When the rule goes into effect, any exempt employee who makes below that threshold (or whatever amount is in the final rule) will no longer qualify as an exempt employee. Retail, manufacturing, warehousing, distribution, hospitality, healthcare and banking:  no industry is untouched. The budgetary impact of converting all these managers to overtime eligible, or meeting the anticipated doubled salary threshold, is enormous.

CAI and the Employers Coalition of North Carolina (ECNC) are formally supporting efforts in Congress to halt the planned federal overtime rules changes.  Most recently, we signed on to a letter sent to congress urging it to block the Department of Labor’s proposed rule expanding overtime pay.  In all, 340 organizations signed the letter in support of the Protecting Workplace Advancement and Opportunity Act. The bill would force the Department of Labor to conduct a comprehensive analysis on how its proposed changes to overtime rules would affect small businesses, nonprofit organizations and local governments.

While we are hoping our actions in delaying the rule are successful, we still believe the new rule will be in effect before summer’s end.  The course of action for a prudent company to take will be to fully understand what is being proposed and to prepare in advance.   CAI members will be continuously updated on the most current information regarding the Overtime Rule on myCAI in “Overtime Central.”  Read more about how this may impact your company.