Exempt/non exempt Salaried employees

Ty · March 2004

We are in the medical field. We have just opened up a new company in our organization. When I received the final signed contracts that the Doctors received I noticed that 2 of the Doctors contracts were written with a salary but it also states the hours that they will work and then anytime over that they will be paid a designated hourly rate. They also hired a part-time pa and wrote in their contract that they would also receive a designated hourly rate if they worked over their scheduled 30 hours which is under the 40 rule for Florida. Is this going to cause DOL problems for me I have never had this happen before usually our contracts state the salary and fall under the salary exempt status.

drorlandoFla · March 2004

Ty, I work in the medical field as well and all of our physicians and mid levels are on contract and salaried exempt. We are bi weekly and only receive 80 hours per pay period. I'll have to look into this to give a better reply, but just off the cuff, if the employee signs an agreement I don't see where you could get into trouble with the DOL. Also as a side note. Where are you? Im in Central Florida. I have been trying to pull together other HR professionals in this location to start a monthly meeting to share ideas and experiences, especially those in the health care field. Would you be interested? Just email me at [email]drobertson@cffhc.org[/email]

Thank you.

Pork · March 2004

It reads to me as a salaried EXEMPT CONTRACT, which goes well beyond the FLSA and concerns for minimum wage. Your concerns are for the "time keeping element" which might cause any other employee to loose EXEMPT STATUS.

Call your Federal Wage and Hour folks in Florida, I think they will give you comfort that the signed contract for a PROFESSIONAL EXEMPT employee will take priority over any audit that they might conduct.

PORK

Ty · March 2004

Thank you both for the response. I guess what I am really questioning is that all our Doctors are salary/exempt and always has been. What I do not understand is can we single out a couple of doctors and write their contract to where it reads starting salary $$$$$$ annually, normal working hours are four days per week Monday throught Thursday. You will be paid an additional $$ (set amount) per hour for any additional hours worked. is this not making him hourly non exempt. Also I have another contract that reads annual base salary of $$$$$$ Then it states hours of employment are Mon thru Fri 7am to 3pm shall not require any evenig or night call and an additional pay of $$$(set hourly amt) for any additional hours worked, is this not making this Doctor hourly/non-exempt also. In the future will we be able to make them salary/exempt like the rest of our staff.

Hatchetman · March 2004

FLSA does not require physicians, along with licensed lawyers and teahcers who practice in their respective fields, to be salaried in order to be exempt.

Take a look at 29CFR541.314.

Thus, they could be paid hourly, for all their work time and be paid only for the hours they work and if they work more than 40 hours in a work week, still not be paid FLSA overtime (remember, they're exempt).

How the emplyer wants then to pay them, is really up to the employer or any contract that is negotiated with the employee.

Exempt/non exempt Salaried employees

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