another non exempt salary question

dcastaneda · August 2004

We have loa with our ee that state they will be given $xx a year with a work week of 37.5 hours each week. My questions is, if the ee works 40 hours, are they entitled to differential pay for the additional 2.5 hours worked.

I read somewhere that the hourly rate needed to be calculated and paid for the additional time but not quite sure where I read that. Anyone dealt with this issue no anything?

pork1 · August 2004

First what does your "letter of agreement" say about how you will handle O/T hours? If it does not say, then my next question will be is this position EXEMPT or NON_EXEMPT?

I need more information inorder to give you a clear answer.

PORK

dcastaneda · August 2004

This position has been classified as exempt until the new regs which will now be non-exempt. Our loa states that the annual salary will be $xx; our policies define our work week as 37.5 hours a week. If further states that all ee are considered full-time salaried ee and therefore are not entitled to overtime. (I did not make these, they were here when I started.)

AJ SPHR · August 2004

I'm confused -
1. what's an LOA? I only know it as Leave of ABsence, but that's probably not right.:-?
2. if a position is declared non-exempt, there's nothing in company policies, procedures or agreements that can nullify the overtime requirements dictated by FLSA (and applicable state law). So, what is it that "further states all ees are not entitled to overtime?".x:-/ If it's referring to a non-exempt position/employee, then it's in violation of FLSA.x:o

pork1 · August 2004

Is the $XXX amount over or below $455.00 gross per week? If it is under $455.00 per week then you would be in violation of the FLSA if you do not pay overtime, which means you would have to calculate what your hourly rate of pay for 37.5 hours per week and that establishes your hourly rate of pay. Now, is that greater than $minimum wage. Since they never reach 40 hours for a work week there would not be any need for the O/T provision but you must have reached minimum wage while being paid a salary. Now, does the 37.5 hold true or did the company look the otherway when ees did work during the lunch break; did they ever come to work early or leave late, did we allow them to take work home that they could not get done in the 37.5 hours?

Just because these provisions were set up before you got there does not releave you of your responsibility to get the situation corrected!

PORK

bsa · August 2004

[i]"...are they entitled to differential pay for the additional 2.5 hours worked."[/i] ---What has the company's past practice been? If this was not addressed in the agreement then it is a company decision, but it is not required by law.

[i]"I read somewhere that the hourly rate needed to be calculated and paid for the additional time..."[/i] ---You may be thinking of the pay method related to salaried non-exempt.

If your executives decide that they want to continue to pay these ee's on a salaried basis as non-exempts, the ee's would be eligible for OT for any hours worked over 40 at 1/2 time of that weeks' hourly rate. Your workweek can be defined at 37.5 hours/week, and if they work 40, the "salary" would be the same.

This explanation is way to simple, I know. I will defer to the experts in salaried non-exempt pay to give a precise explanation (or do a search for past threads on this subject). In my world, I would fight against making anyone salaried non-exempt because of the complication of calculating their overtime.

another non exempt salary question

Comments