Exempt vs non-exempt

GLC

I work for a counseling center. We are wanting to go more toward a pay for performance system. Right now all of our therapist are classified as Exempt. We are wanting to pay any therapist who does not meet productivity expectations to hourly instead of salaried. Would that pose any problems with Wage and Hour laws if we have some salaried and some hourly therapist. They would be doing the same job. If we paid some of these therapist on an hourly basis, would they now be considered non-exempt or could they stay Exempt but just paid on an houly basis?

Pork

GLC: READS TO ME LIKE YOU NEED TO CHECK OUT YOUR CLASSIFICATION OF EXEMPT THEARPIST. THEY MUST EITHER BE EXEMPT OR NOT EXEMPT. I suggest you get a copy of Regulations Part 541, a DOL free publication that covers the difinition and terms pertaining to EXEMPT verse NON EXEMPT. Given that they are truly exempt then you can do both, but then you set precedence set reasons for paying one differently than another and you must be consistent in how you determine who is paid hourly and who is paid on a salary. If you set-up and follow the rules of FLSA in pay, then you must be able to prove that you are consistent in your actions. In our company supervisors fall under the category of EXEMPT but we choose to be competitive with our neighbor companys and they are all paid overtime. Therefore, we are doing better than the required by law. Since we have chosen to do this we must do it for all of the supervisors in that sector of our business. In another sector, supervisors are paid on a salary basis and are expected to work whatever hours are necessary to get the job done. They go home when they deem it appropriate. They also come to work when the job needs them to be there, of course in concert with their bosses thoughts on their need to be at the work site. Check it out before you act! Pork

NaeNae55

Sounds to me as if this should be handled as a performance issue. One thing you don't want to do is mess up your exempt status because of one therapist who is not meeting your expectations. If you really feel this should be handled monetarily instead of counseling, try reducing the salary of this therapist. But be prepared for an upset employee.