ASM Hourly Conversion

A previous thread mentioned that all ASMs were to be converted to hourly associates NLT January 1, 2017 in response to the new federal salaried/overtime executive order. For Kmart locations, this change is NOT absolute. My store has three salaried ASMs who are to remain salaried after January 1st. The hiring terms for these personnel include that they will work a maximum of 48 hours/week; perhaps due to this stipulation - that the employees voluntarily signed paperwork agreeing to a set compensation package that requires their working above 40 hours/wk - makes them exempt from the new federal overtime rules?

(I'm no federal law/tax expert...I'm merely reporting the facts as given by the ASMs in question.)

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I am in auto and commission is for sure going away. I am an the AACM so I know because I have it in writing. I don't think it affects anyone in full line.

@K1zaY0g-2ggv, when and where did you hear commission is going away, and for which departments (I'm in HA)? Do you know how many stores they plan to roll this out to?

Is this just for Kmart managers? Is it a national order?

That has been my question because I am SNE. The terms seem to have changed. When you try to research it things are about as clear as mud. All I can say is that commission is going away and I am getting base pay raise, plus what looks like actual time and half. This is my last week to make any straight commission. The bonus pay looks like it will be based on store performance.

I just have to wait to see a paycheck to see what they are really doing. It actually could be good for me but I am auto so it is not all the same. I will let you all know what happens.

We were told that all ASM's in the Kmart format were changing to non-exempt status regardless of their salary rate. I guess that was a lie.

It depends on their salaries. If they make over 47,800, then they are exempt. What they are doing is prorating the pay so the same salary they make now is divided into 40 hours plus 8 hrs of OT. They are telling them that they are still full managers but they have to punch the clock, have personal days, paid holidays, time and a half on holidays, and switching their pay weeks to the same ones that the rest of the hourly employees have. Basically, they are becoming hourly employees. What the company is not telling them is that when most of them are laid off next year, they now are capped at 8 weeks severance, the same as all other hourlies. They won't receive the 20 weeks that the ASMs laid off this year got. Most, if not all, the Kmarts will be closing next year and they will be gone. Any stores that don't close will probably lose their ASMs and be replaced with cheaper HL and SL floor supervisors.

Of course the new Overtime rules take effect on December 1, 2016 - Not January 1, 2017.

Curious to see what that compensation package looks like

Thread regarding Sears layoffs

ASM Hourly Conversion

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