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PDF Editor FAQ

What's a rule your employer implemented that backfired terribly?

My company at one point implemented an electronic time clock and non-exempt employees were required to punch in and out via our computers every day. We’re office workers who manage our own time, so this caused some consternation. We had to run to our desks in the morning, boot up the computer, and clock in by the appointed time. If our computers took 5 or 10 minutes to boot up (a real issue), that was on us. Well, we complained, of course, because we’re professionals who had previously not had any issues managing our time and this system was a solution to a non-existent problem. Anyhow, what the company didn’t know was that all non-exempt employees put in extra time here and there and don’t put in for it on the time sheets, staying a few extra minutes to finish something, taking a shorter lunch because something is going on, etc. Well, when they began making us clock in and out, all those extra minutes here and there started showing up as overtime in our paychecks. They had a choice….they could either strictly enforce a 5pm departure and a 60 minute lunch break or they’d be paying massive amounts of overtime to the staff. The managers were up in arms because they depended on the staff to “walk the extra mile” but the company didn’t want to pay for that. The time clocks were gone in short order and things went back to normal.

Why do top consulting firms like McKinsey, Bain, and BCG not pay overtime?

1. Professional employees of management consulting firms are considered to be exempt employees. For such employees employers are not required to pay the time and one half pay rate for all hours exceeding the standard work week of 40 hours.2. Professional employees of management consulting firms are expected to work until the job is done, regardless of how long it takes. In return professional employees are typically not asked to account for every hour, like taking 2 hours during the work week to go to the doctor.3. Professional employees of management consulting firms are typically paid very good salaries. The three mentioned in the question pay extremely well. High salaried employees are expected to work more than the standard work week of 40 hours, w/o extra pay, in order to accomplish the required work. Think about it. Employees earning a salary up in the 6 figures should not expect to be compensated for overtime as non exempt hourly personnel are.4. In addition to very good salaries, professional employees of management consulting firms often earn good bonuses and retirement contributions. It seems hard to justify overtime pay for such employees.I am not an HR or compensation consultant. I would welcome review and possible corrections in any of the above.

How are wealthy executives allowed to pay themselves a $1 salary when the minimum wage is much higher than that?

CEOs can pay themselves $1 because they are exempt from the Minimum Wage rules. Those rules only cover non-exempt employees. There are many possible exemptions, including commissioned salespeople, IT professionals, executives, and others.

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