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Take It Or Lead It

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Monday, April 30, 2007

HR issues are us

Apr 30 2007 6:30AM | Permalink |Comments (1) |


Welcome to EDN.com’s HR blog! We live on the Business Center of EDN.com, but HR issues really have no boundaries, so we expect to have a lively community of members who visit from all areas of the site.

UKNY Consulting is a boutique HR, Change Management and Training firm based in New York City. We are The Changeologists, so called because our mission with UKNY is to help individuals and organizations overcome employee and company culture challenges to achieve significant, positive and often radical change. You can check us out at http://www.uknyc.com/.

In our blog, Take It or Lead It, we will bring you the quintessential guide to preventing and managing a wide variety of business issues related to people and performance. We want this blog to reflect the concerns of our readers, so please contact us with your conundrums and questions, no matter how challenging!

Recently, a reader submitted the following question:
"During a particularly busy time, a manager tells his staff that overtime is mandatory.  This includes working overtime on a day that is slated as a company holiday (such as the day after Thanksgiving or the day after Christmas).  The manager tells his staff that failure to work this overtime could be grounds for termination.  Is mandatory overtime legal according to today's labor laws?  Can an employee claim a hostile work environment over the threat of termination of one's employment if the employee is not able to work the overtime?"

Our response: Very simply stated, in the U.S., an employer has a legal right to ask employees to work overtime and to discipline those who refuse. However, most employers are facing a competitive labor market in which those who are unhappy about mandatory overtime may simply choose to work elsewhere. Although overtime may be welcome by hourly employees who want the extra income, for others it can be disruptive, particularly when it happens at the last minute, leaving them scrambling to find day care or rearrange personal plans.

Even in companies where overtime is part of the culture, employers who routinely rely on it to get the job done risk poor morale and higher staff turnover. In extreme cases overtime can cause fatigue and that can lead to accidents, mistakes or injuries.

In unionized environments there are further complications such as labor disputes, or worse -- strikes. Even with union contracts in place, employers often have a good deal of leeway in requesting their employees work overtime. Although the Fair Labor Standards Act of 1938 (FLSA) governs overtime pay it does not govern overtime hours. Many states have their own overtime laws patterned after and in many cases, identical to the FLSA. However, employers should always check state and local laws governing employment practices relating to overtime.

Employers must also be careful not to force mandatory overtime on an employee who may be unable to work overtime due to leave requirements of certain federal laws, such as the Family and Medical Leave Act or an employee who must attend doctors’ appointments or treatments due to a condition covered by the Americans with Disabilities Act.

If managers want to mitigate the negative impact of overtime, they should write a policy.  Then communicate it to all employees when – or before – they are hired. Put it in offer letters, job descriptions and employee handbooks. Making overtime part of the culture in this way creates transparency and fairness – making it less likely that employees will react negatively when you have to request it.

A close analysis of how overtime is allocated is also a smart – and fair -  thing to do. Finding the willing volunteers is an obvious start, and you could look at options based on seniority or rotation. Whenever possible, let people know in advance that extra hours might be needed, and give a cut-off time when you’ll let them know for sure one way or the other so they can make plans accordingly.

It may be impossible for certain businesses or work teams to avoid overtime entirely, but the best employers make every effort to reduce the need for overtime by addressing the underlying causes. If your people feel that you run an efficient operation and take their needs into consideration, you are more likely to be perceived as a fair employer. That in turn gives you a credit in the “emotional bank account” you have with them. Plenty of credit makes it easier to make an occasional withdrawal, like asking them for overtime on a public holiday. Companies and managers who play the “Because I said so” card may find they get what they want in the short term, but find that it comes at a high price in employee sickness, productivity and turnover costs.


Related entries in: Business Strategy | EDN | 

Reader Comments



at 5/9/2007 10:39:34 AM, Rick said:
Researching ways to reduce Workers Comp cost and provide affordable health insurance benefits, I looked into PEOs. By outsourcing human resources for your current employees,business owners can reduce employee overhead and administrative paperwork. Professional Employee Organizations removes the non-productive tasks from your business so that you can concentrate on growing your business. It’s like having your own personal staff of human resource experts to handle all of your employee hassles. I researched numerous PEO websites at www.onlinehrhelp.com. Good luck on your search!

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