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Five Issues in Your Back Office That Need Your Attention As We Start this New Year!

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Melissa Knowles, VP of Gym HQ, a ClubReady CompanyMelissa Knowles, VP of Gym HQ, a ClubReady Company

Many of you may well be several weeks into your New Year's resolutions when you read this. Much like the start of a new year presents a good time to set new goals and work toward your best you, it also offers the opportunity to review your business, look for the gaps and work toward bridging them. Due to its complexity and direct impact on legal risk, a review of your human resources and pay practices is a great place to begin. We've gathered the top five areas in which we receive the most questions or have spent the most time coaching and have presented them here with appropriate comments that should help you as a club owner, general manager or back office staff member and others.

Issue #1: Employee Misclassification - We start with an issue that should be relatively fresh in most owners' minds. Preparing for the salary base increase that was set to go into effect on December 1, 2016 led most businesses to take a hard look at the team members being paid salary and being treated as exempt. While the proposed changes only impacted the minimum salary requirements, many owners noted that they may also need to make some changes based on the existing duties requirements. Below are the three categories for exemption based on duties:

Executive:

  • Regularly supervises two or more other employees; and also,
  • Has management as the primary duty of the position; and also,
  • Has some genuine input into the job status of other employees (such as hiring, firing, promotions or assignments).

Supervision means what it implies. The supervision must be a regular part of the employee's job, and it must be of other employees. Supervision of non-employees does not meet the standard. The "two employees" requirement may be met by supervising two full-time employees or the equivalent number of part-time employees (two half-time employees equals one full-time employee).

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