Exempt personnel at project sites

mamhradm

What is the proper way to code timesheets for temporary exempt/salaried employees who work more than 40 hours per week, but one day is less than 8 hours. They are paid on a weekly basis.

Example: These site engineers are required to complete timesheets for billing purposes to a client. They may work 10-12 hour days early in the week, but come in for 3 hours on a Friday or Saturday.

Must we add additional hours to the Friday/Saturday to equal 8 hours? The total hours for the week may equal 50 or more.

Yes, they meet the qualifications to be classified as exempt, and no, the customer does not want to classify them as non-exempt because they cannot bill their clients at 1-1/2X the hourly rate.

NaeNae55

You are paying your exempt employee for a job, not by the hour. So it is the same amount regardless of whether they work 30 or 50 hours that week, or whether they work 12 hours one day and 4 the next. The pay is the same as if they worked 8 hours Mon-Fri.

You are charging your client by the hour. So if your exempt employee worked 50 hours I think you probably have a right to bill for 50 hours. Of course, it depends on your contract. Also, if it took the employee 50 hours but it would have taken the average worker 20, you might want to reconsider charging for 50. x:-)

Good luck.

mamhradm

Thank you for that clarification - however, we pay exempt personnel a straight time rate for hours worked over 40. Are you saying then, that, partial days (after the 40 hour criteria has been met)do not need to be added to in order to make an 8 hour day?

Don D

[font size="1" color="#FF0000"]LAST EDITED ON 09-16-02 AT 03:58PM (CST)[/font][p]There is no '40-hour criteria' regarding exempt employees. I think you may be violating the Fair Labor Standards Act's Wage-Hour policies with your policy. I'll let an FLSA expert join in.......x:-)

NaeNae55

If you are talking about coming in on Saturday after working a full week Mon-Fri, then I would say you don't have to add hours to make 8. However, when it comes to paying exempt employees by the hour, I am no expert (I would avoid like the plague). Maybe someone else will be able to help. Anyone out there have something to add?

Hatchetman

There's a lot of debate about whether or not an emplyer can compesnate an exempt employee for work in excess of what the salary is suppose to cover.

Take a look at 29CFR541.118(b). It specifically addresses the issue of the employer's ability to pay the salary plus extras. So, if the employee is paid a set $x dollars for hours beyond what the normal salary is suppose to cover then that seems to be acceptable.

I recall that several weeks ago and at other times, there has been discussion on this BB on the issue of whether or not an exmept employee can "get" overtime and, if so, in what type of compensation. You may want to research it for some addtional thoughts.

Don D

I think the post said that once the exempt ee reaches 40 hours, the system converts and tracks them hour by hour to determine an hourly rate. If I'm not mistaken, this might border on whether or not they are considered exempt. Paying them a bonus or set amount above and beyond their guaranteed salary is one thing....tracking them hour by hour (I think) is another. The classification may be jeopardized. Or perhaps not.

Don D

It may be entirely appropriate for an attorney to guide you through this maze. Afterall, they are exempt and are certainly magicians at charging. I am amazed by the number of billing summaries that can conclude everybody at the firm worked on the same issues for you at the same time. It is quite possible for law firms to show that the total number of hours worked equaled 50 while the billable hours equalled 90. Magical indeed. x:-)