Change from exempt to hourly - how to determine if OT pay is owed
tt3286
1 Post
An employee was changed from exempt salary to hourly approximately 3 months ago, when the job description was up-dated. The manager never commmunicated this change. Since the change was not communicated, should the original change date be honored, or just change going forward? If the original change date is to be honored, how should we determine OT hours worked and OT earnings owed when a time sheet has never been completed?
Comments
If that is the case you do need to go back to the update and make the change. That means without any time records, you'd have to rely on the employee's records, if any -- this could even be notes the employee kept. You're basically on the "employee's playing field" in this situation. And if the employee doesn't have any notes or recores at the time, a joint recollection to insure overtime is paid out in accordance with FLSA with which the employee agrees would probably be sufficient.
Remember, the non-exempt status is the "preferred" status under the law.
If the position can still be justified as exempt, then make the change current since you didn't tell the employee back then and I assume there is no other impact in changing the FLSA status either effective 3 months ago or currently. It will make "life" much simpler.
Once you open this door, you may find the resolution more complex. I strongly recommend in preparing to discussi the matter with the employee, you discuss it first with legal counsel.