After Dept. of Labor Policy Change, Vanguard Moves 2,100 Workers From Salary to Hourly

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Vanguard
The Vanguard campus in Malvern.

images (11)A recent shakeup in job classifications at Vanguard Group has 2,100 “crew” members of the Malvern-based financial firm sifting through changes to see how much money will be left to take home.

Sparked by a government proposal to raise the floor of employees eligible for overtime pay and sweeping changes to Vanguard’s own employment structure, the 2,100 employees at Vanguard were switched from getting a salary to earning an hourly rate, according to a Philly.com report.

While “it’s not going to impact expense ratios,” spokeswoman Arianna Stefanoni Sherlock said in the article, there is some concern among employees that the bottom line will be less than they’re used to. “Will these workers lose their year-end bonuses, raises, partnership plan eligibility, work-from-home arrangements?” the article questioned. “Can they count on getting assigned overtime hours?”

On Philly.com here, read more about the new change at Vanguard and the underlying U.S. Department of Labor policy change aimed at granting overtime pay protection to almost 5 million new white-collar Americans caught in a loophole of the rule — last updated in 1975 — that prevents them from receiving overtime even though their salary is as little as $23,660 per year.

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