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Can we pay exempt's hourly?

stretched2thinstretched2thin 15 Posts
in Compensation Vote Up0Vote Down
Under FLSA, can we pay an exempt employee on an hourly basis? I'd like to guarantee them a minimum salary, but pay them straight hourly pay for hours worked over 40. Is that allowable? Does that jeopardize their exempt status forcing us to pay them time and a half?

Why? The hours they work are billed to the client at a premium. This motivates them to work more hours, thus bill for more hours, therefore the client pays us more.
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  • 2 Comments sorted by Votes Date Added
  • pork1pork1 1,054 Posts
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    STRETCHED2THIN: You can pay an exempt employee by the hour, but when you do you are most likely destroying their EXEMPT status and time and one-half would always be required for all hours over 40. We choose to pay our supervisors, who supervise greater than two employees by the hour; they get time and one-half for all hours over 40. Thus, they are non-exempt resulting from our company practice and precedence.

    The supervisors would rather be EXEMPT and get a full expected salary, but they also want to keep their hours worked to 40. The work just simply can not get done in 40 hours a week and working no less than 6 or 7 days a week.

    Why can you not bill according to your actual expense regardless of hours worked?

    PORK

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  • marcmarc 3,126 Posts
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    Please do not post the same question in two different areas - it ruins the flow of the thread.

    See answers on your other post.
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