stupid

globex

Gentlemen and Ladies:

I know this is a stupid question but I have never been shy about that. I presently have a non-exempt hourly person that would seem to qualify, now, as exempt. Do I have to change them to exempt if that would result in less pay (because of OT)?

Thanks in advance

crawfod

My philosophy has always been "The only stupid question is the one that you didn't bother to ask." Anyway, No, you are not required to classify someone as Exempt, even if they meet the rules. However, not doing so subjects your employer to possible extra expense from the OT, thus affecting profits. Plus you would not want to be treating some employees differently. Plus, Exempt employees do gain the privilege of being salaried, having more freedom to do their jobs on their schedule rather than a clock, and a few other benefits.

That being said, you also can reclassify an employee to Exempt and still pay them overtime, but this approach has drawbacks, and in my opinion is not advisable.

Can we help you in clarifying why this person's situation has changed to now make them exempt?

globex

In fact, not much has changed except two things. First, the ee is no longer receiving child support (which is NOT our problem) EXCEPT the ee stated to me that now she must work more OT. This concerns me as I am acquitely sensitive to sandbagging. Second, the ee approached ME as to the possible change in her status to exempt. Technically, she HAS qualified as exempt but I kept her as non-exempt to "help" her some with her finances. My wife and I own the company so I am everything she is not!

Thanks for all help.

System

It's really a business decision whether you want her exempt or not. $$$ Another option: Give her a raise and make her exempt.

James Sokolowski
HRhero.com

pork1

GLOBEX: No question is ever stupid; some of our responses maybe considered as stupid from time to time! Given your employee's position is correctly identified as an EXEMPT employee. You may pay the employee as a hourly rate of pay and include overtime. Once you start out on that path, then all provisions of the FLSA applies and your company should execute the ee's compensation package, accordingly. We have several positions that are paid based on FLSA as hourly plus overtime, even though they meet ever aspect of the provisions to be classified as EXEMPT. We and your company are doing better than the FLSA on behalf of our employee and that is good for the company and the employee.

PORK