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FOXBusiness.com's Kate Rogers on how to legally protect your company when giving title promotions to employees without raising their salary.
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How specifically if you're out there and you are on running a business and you give some of your employees promotions but you don't have the money.
To give them raises can you still give them a title only promotion and will that be appreciated only your employees say well what good is more work.
If I'm not gonna get more pay well to help us navigate these tricky waters we have got Kate Rogers hear from foxbusiness.com.
Thank you for being with us being for having me somewhere where people -- doing this now companies.
In this situation that's playing out at businesses of all sizes across the country -- -- economy they don't have the money to give people a full promotion.
-- raised six salary but they'll get a title only promotion and that helps to boost the point around and also rewards workers who are doing well.
But there's definitely some situations where businesses -- -- the -- can get into some hot water legally if they don't do things right.
Well for example in your article you note that if the person was up paid by the hour.
And they get a promotion into what might be considered a managerial position and now they would be getting paid by salary -- you keep them on an hourly wage there are problems with the labor report.
Exactly see you have to sell meet those Department of Labor standard is whether it seems clear is is exempt or not exact -- call someone manager but if they are not actually managing people.
You can find yourself allowing them.
Potential back okay if you haven't classified as exempt from overtime for example and they're really not -- -- need to really carefully read those of permanently -- fair labor standards act.
Classifications for every employee and make -- their job description -- -- proper classifications.
-- good for morale because you know somebody Gibson bigger -- -- along the bigger -- come more responsibility -- heavier workload does everybody appreciate.
Doing more work for the same tank like these it's on the way that it's package that we talked to that national federation of in his business and also to trips got lawyers in Miami so they say.
That if the employer presents this -- their worker in a way where they say.
Maybe we're not giving raises rate now -- weren't salary freeze for six months but we can talk about this again in six months -- See what you're doing.
Then I think that's definitely something.
You know.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- A bonus around the holidays -- couple -- the -- -- -- a little something extra to make them feel good make you feel good and also keep everyone happy as far as legalities can turn right because only 70% of a person's salary you a person's total compensation is salary at a 30% despite these other things -- If you can do something in those areas of at least make -- -- I'm happy all of it better.
But you know you mentioned that you kinda tricky area where you say we can't give you a reason now.
But we'll talk about it again in six months.
That you -- -- talk about it but your article you quote people are saying but don't promise because -- can't -- the Marines in six months and then you don't deliver.
You've got a big problem you have a major problems seen ETU.
Leave the door open but never put anything in -- in writing army anything in the verbal promise here employee because any come back and say that you promise them something that you didn't deliver on and you can't velocity on your hands and one last area I think is.
Pretty blatant but also very important is discrimination.
Act to look at the logistics of -- you're giving raises to.
For what type of promotion over X amount of years and cover your own -- to so that.
When it comes to you up a possible -- this -- politically you don't have discrimination case your hand so we're not giving raises right now here's why here's what we can talk about it again has nothing to you it.
Race gender or anything like brand has so it has to be across the board if you're giving -- title only promotion actually have to give those to everybody not some people get the raise and others just get the title back it's one of the other across the board.
All right so for those steps and a lot more you can read Kate Rogers article on enough foxbusiness.com.
Kate Rogers thanks as always be joining me.
