Reduction of Hours

Rockie · July 2001

In order to gain more flexibility in the workplace, we are thinking about letting employees reduce their hours to where they could have either 1/2 day off each week or a full day off every two weeks. To be fair, we would offer this to salaried individiuals as well as hourly individuals who would like to work less than the traditional five day work week. My question is how can we structure this as to not be in violation with Wage & Hour as it relates to exempt individuals. Instead of quoting a per hour rate, could we just say their annual salary would be reduced by 10%per year if they decided to work this schedule? Thanks!

Mikki H · July 2001

Hi Rockie! We are trying to implement something like this too. We are trying to figure out a schedule for non-exempt to work 4-10 hour days and get a friday off once a month and "stagger" the days off so that a department is still adequately covered. We are also trying to figure out how to treat our exempt employees under a plan like this too, but have been stumped.

Currently, when an exempt person is hired and salary negotiated, it is stated that they set a regular schedule of 8 hours a day, M-F only, between the hours of 7:30 and 5:30 (only speaking of in office medical and management staff after hours work is rare) and overall that they "average" 40 hours during the week. We do not track any time, we do not dock for partial days absence. Most exempt do work a regular 8 hour day and get out of here. Sometimes a special event will require weekend work and we allow those days to be substituted for any M-F during that week (if they choose too, not required, not tracked). The few hours taken here and there have been no problem, but to regularly schedule a full day off and still get paid has stumped us too.

For a few of the exempt we would have no problem because they probably already average 50 hours a week with no additional compensation, this would be a great little benefit for them. We thought that since the job was set as a 40-hour average week, we could still ask for the 40 hours averaged but in a 4-day week instead of the 5-day week and get by with it. However, I don't know if it is enforceable. What do you think?

Rockie · July 2001

This is a real tough call. I attended the SHRM Conference and we had an excellent speaker who spoke on Wage & Hour and addressed the exempt level employee in particular. She advised to stay away from ANY type statement dealing with hours on exempt level employees. We have employees who actually work less than the traditional (40) hour week and if they go below this traditional week, then their salary can be reduced by a percentage, but we cannot address it as a "per hour" rate. Any other language or treatment would constitute voiding their exempt status.

I would say on your exempt people, just let them work a schedule where they could take a day off a month without any type of formal arrangement on their part. It seems like any time you address hours concerning exempt level people you end up getting caught up in Wage & Hour issues.

I'm not sure this answers your questions, but just be cautious in dealing with exempt people's hours and pay.

Reduction of Hours

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