Timekeeping for Exempt Personnel

We are a DOE contractor. We have an AWS (Alternate Work Schedule) We work (4) 9 hour days, and an 8 hour Friday. The next week, we work (4) nines and we are off the Friday. WE love it.

Two Questions:
1. Should Exempt supervisory/executive personnel record actual work hours on a time sheet, just as non-exempt personnel do? Does this not qualify them for overtime pay once their Supervisor signs to attest that they did, in fact, work hours in excess of 40-hours that week?

2. On vacation days used should Exempt employees record 8 hours vacation time used (if that was an 8 hour day), or 9 hours vacation time used if that was a 9-hour work day??

We currently record 8 hours vacation time for Exempt employees, with the understanding that Exempt employees are paid for a 40-hour work week, no matter how many hours they work.

Non exempt employees record 9 hours vacation time because they are paid by the number of hours worked, not by the week.

Which is legal?

Your quick response will be appreciated, and I welcome any expertise to help resolve this issue.

Thanks to all.

Comments

  • 4 Comments sorted by Votes Date Added
  • 1. You may record actual hours worked for the purpose of keeping attendance records or calculating additional compensation over 40 hours per week. Our company pays straight time after 44 hours to all exempt ee's below the director level. You cannot use the record keeping to pay less than 40 hours per week. Some will caution that even though this is legal, the absolute safest approach is to not keep records. But, it is legal if used properly.

    2. I would think either 8 or 9 hours of vacation would acceptable as long as they receive 40 hours total for the week. In the past when we had AWS, we paid just 8 hours for vacation or holiday and expected the ee's to make up the difference on other days worked. But, that effected primarily non-exempts.
  • [font size="1" color="#FF0000"]LAST EDITED ON 01-22-04 AT 06:34PM (CST)[/font][br][br]I agree with Ray on the first issue. DOL expressly acknowledges there are many legitimate reasons for record the actual work hours of exempt. The issue for them is that th ebase salary is not based upon the actual hours worked, exceptas reduced FMLA may apply, as long as deductions from the weekly salary are done in accordance with 29CFR541.118(a) -- full day absences.

    On the seocnd issue, DOL has expressed its formal Opinion that when docking salary for full day absences the docking is to be based upon the pro-rated share of the number of work days the weekly salary is intended to cover, not the particular hours worked.

    But what pro-rated share of the salary do you dock on the short week on the 9/80 schedule?

  • Here goes my record keeping speech: It is perfectly acceptable, legal and reasonable for a company to 'track' or 'record' the work hours of exempt employees. Tracking hours can never be illegal, only the use one might make of the tracking or what negative action might result from that tracking could be illegal.

    Some good reasons to track exempt hours on a time sheet are: FMLA reconciliation, for use in auditing vacation taken/reported, for use in assigning work activity codes, for purposes of administering a bonus-pay program, for billable hours purposes, to have a signed/defensible acknowledgement from the ee and supervisor that certain work activities were accomplished or certain types of leaves were taken. So, it is entirely up to the company. If it serves a legitimate business purpose, such as I have listed, go for it.

    To answer the second question in your first item, no, tracking hours does not qualify them for overtime pay. The company may have a bonus pay system in place if it likes, but none is required.

  • Thanks, I've never felt really comfortable with exempt recording actual hours. We do use time sheets for tracking absences, vacation days etc. I'm glad to know it doesn't jeopardize someone's status to record their actual hours, as long as they are paid on a salary basis.
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