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Overtime Stipend for Exempt Production Supervisors

RuskanenRuskanen 183 Posts
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Do any of you offer any sort of overtime stipend (i.e. straight hourly pay for anything over 40 hours, or time and a half for anything over 48) to your salaried, exempt supervisors that are working in a warehouse or production/assembly setting?
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  • 9 Comments sorted by Votes Date Added
  • PixiePixie 72 Posts
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    Yes! Our factory foremen get staight time o.t. for all hours worked over 8 in a day.
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  • ShadowfaxShadowfax 910 Posts
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    Lisa, I have been watching this thread to see if anyone had comments, and I see Pixie says they do it. My question though is why? And particularly the way Pixie is doing it probably destroys the exemption, so they are not paying correct ot rate and now responsible for double damages.
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  • RuskanenRuskanen 183 Posts
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    Our company pays straight time for anything over 40 hours in a work week. I think the logic when they set it up was, if a team lead that had been with the company for a long time and therefore earning good pay moved up to a supervisor position, they may be earning less per hour when adding in all the overtime hours. The VP and operations manager would like to do away with it and we were wondering how other companies handle this situation.
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  • PaigePaige 153 Posts
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    I think Shadowfax is going in the right direction with this. Offering an hourly stipend for anything over 40, could destroy the exemption. What happens if a particularly efficient supervisor completes his or her work in less than 40 hours? They are, in a sense, punished for being efficient. In the same manner, perhaps the ones working OVER 40 hours are less efficient (don't know if this is necessarily true as I don't know the exact business we're talking about, but it's just something that came to mind).

    In addition, the ability to classify a position as exempt holds that the time it takes a person to do the work is not a factor--it is the type of work that they are responsible for doing.

    Perhaps another route to take--offer these production managers a bonus tied to meeting or exceeding certain company protocols.
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  • Don DDon D 9,834 Posts
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    We have a bonus program which applies to production supervisors. We frequently work unscheduled Saturdays at our plants. The formula allows for bonus payments to be made to shift supervisors who work at least two Saturdays per month. The bonus is a percentage of their monthly salary based on the total number of additional Saturday hours they work. There is no additional pay for the many, many times they come in two hours before shift or stay 3 and 4 hours after their shift or work without lunch break. You can't run a horse constantly without some rub-downs and periodic sugar. If you do, he will eventually either lay down on you or jump the fence.
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  • dmeyerdmeyer 2 Posts
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    Our organization offers a $175 stipend to Production Supervisors if they work an additional shift of at least 4 hours or more. They are not compensated additionally for any OT that is required as a normal course of their role during the week, unless they work an additional shift of 4+ hours. Generall this is for their time on Saturday. We felt that since they had to be with their team members on Saturday, a fair way to recognize this effort was with a stipend. It is not based on # of hours they work or calculated as time and a half. It is a straight flat rate.
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  • DanDan 63 Posts
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    We have an Extended Work Week Policy. If salaried exempt employees are scheduled to work more then 48 hours a week for more then four weeks in a row, they are paid a flat rate for all hours over 48 per week. It does have to be scheduled and approved ahead of time. I work on a start-up project with many audits prior to production beginning so there can be some extensive hours worked.
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  • marcmarc 3,126 Posts
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    This topic seems to come up regularly. The fact is, exempt staff can be paid in a variety of fashions. The method of pay does not destroy nor give merit to the tests associated with a positions status as exempt. If that were the case, just paying a non-exempt person a salary would give rise to consideration for that position being exempt. It just does not work that way.
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  • 22841032284103 56 Posts
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    Then, what is your view of the parameters surrounding how you pay your people, whether they are exempt or non-exempt?
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