HELP

We have a law intern working with us. He is being paid $200 per week. Our work week is 35 hours. Last week he worked 41 hours. My position is that he is not qualified to be considered a salaried person and therefore we must pay him for all time he worked including 1 hour over time. (His position is partially funded by a grant of $1,000 which we match with $1,000. His employment is for 10 weeks, thus the $200 per week figure.) My managers are arguing that because he is a funded intern he can be considered salaried. What do you all think?

Comments

  • 3 Comments sorted by Votes Date Added
  • The FLSA regs allow you to pay a salary even to non-exempts. I think your question is really whether this person is exempt or non-exempt, not whether salaried or hourly. Non-exempts on a guaranteed salary also must be paid overtime as appropriate, at their computed hourly rate. Paying an exempt a salary by no means allows the employer to avoid the payment of overtime. I feel that this employee is salaried, non-exempt. The salaried guarantee agreement with the intern will allow you to pay the same weekly pay for weeks of 35 hours or weeks of 40 hours, however, that additional hour you mention should be compensated at 1.5 times the computed hourly rate.
  • >The FLSA regs allow you to pay a salary even to non-exempts. I think
    >your question is really whether this person is exempt or non-exempt,
    >not whether salaried or hourly. Non-exempts on a guaranteed salary
    >also must be paid overtime as appropriate, at their computed hourly
    >rate. Paying an exempt a salary by no means allows the employer to
    >avoid the payment of overtime. I feel that this employee is salaried,
    >non-exempt. The salaried guarantee agreement with the intern will
    >allow you to pay the same weekly pay for weeks of 35 hours or weeks of
    >40 hours, however, that additional hour you mention should be
    >compensated at 1.5 times the computed hourly rate.



    Don,

    Would this apply even though it is an intern situation? I don't know, but am asking the question for my future reference. I know many internships while a person is still officially a student are even unpaid as they are a requirement to graduate, etc.

  • Given that this is a granted position, you should be okay for the 40hrs, unfortunately the one hour of OT should be paid at the OT rate. Don is right about the difference between exempt vs salaried. We are several paid summer interns, all are salaried, none are exempt. You may want to counsel him about working OT that is not approved.
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