UPDATE: More in my Oct. 25, 2015 Philadelphia Inquirer column here. EARLIER: Vanguard Group on Thursday told around 2,100 U.S. staff -- 15% of the Malvern-based investment giant's global 14,200 "Crew" -- that they are now non-exempt hourly (not "exempt" salaried) employees, and this may affect their take-home pay.
Vanguard "reclassified certain jobs as overtime eligible, due in part to the anticipated Department of Labor regulatory changes, along with broader changes to our job classification structure," Vanguard spokeswoman Arianna Stefanoni Sherlock told me. Vanguard, which has more than $3 trillion in assets, is the largest private employer in Chester County. More on Labor Department overtime proposals here.
Will this result in Vanguard actually increasing pay and boosting costs? "It's not going to impact expense ratios," Sherlock said in an email. Will these workers lose their year-end bonuses, raises, Partnership plan eligibility, work-from-home arrangements? Can they count on getting assigned overtime hours, will many of those 2,100 employees end up making less money? Sherlock said the company won't comment on compensation, but will continue, she added, to offer competitive packages..
"It's good if it's something Vanguard employees want," said Dan Wiener, publisher of the Independent Adviser for Vanguard Investors newsletter. "If it's something they don't like, that's bad for customers," he added.