Part Time Exempt Employee

LindaS

We have an employee who is currently classified as Exempt. In all reality, she should not be classified as exempt as her actual job duties do not fall within the classification of exempt but upper management did not want to change her as she sees it as a "status" thing.

Due to a downward turn in business upper management is moving a number of individuals to PT and she is one of the ones on the list. I will be taking over some of her duties and the ones she will continue to have will be non-exempt.

Will we have a problem if we move her to hourly or even reduce her salary based on going to PT?

NaeNae55

Exempt or hourly is based on duties. You can explain that her changed duties change her classification.

I feel for you. I remember an employee (a nurse) who I had to tell was actually in an hourly position. She was insulted and told me in no uncertain terms that she was "a professional." I was able to reply that accountants were professionals too, but some of them were hourly too. The FSLA doesn't necessary regard professionals the same way the public does. Wish I could tell you my remarks made her feel better, but she remained insulted as long as the job remained hourly.

Good luck!

Nae

KSR6450

I have been following this thread because I recently went from an exempt position to an hourly part time position (my choice). My duties did not change; are we okay? We did not give it any thought since this was my choice and I would never make a fuss, but will the DOL?

joannie

I don't believe the DOL cares if an exempt is classifed non-exempt. The just want to be sure the people entitled to over-time get it.
That is, as long as the non-exempt is paid overtime at the prescribed rate.

NaeNae55

You could have gone to a part time exempt position, as long as the duties justified it (we have had those here too). Part time exempt can be tricky though, so it is much easier to just stay away from them.

Remember, you can always do more than the law requires, you just cannot do less. Therefore paying you hourly is acceptable, even if your position is an exempt position, as long as they pay you overtime if you ever work enough hours to qualify for it.

There is one concern. Sometimes it can look suspicious to the DOL that you are paid hourly for an exempt position. They may end up taking a closer look than you would like to all your jobs. This is especially true if several employees do the same job and they are classified as exempt. Keeping clear documention of why your job qualifies for exempt classification, and why you are choosing to be paid hourly, will help offset those dangers.

Good luck!

Nae

KSR6450

Thanks Jo, that is what I thought - the DOL is more concerned with a company trying to put someone in an 'exempt' classification to avoid paying OT rather than the other way - but best to err on the side of caution and ask the experts.
I may actually get OT this week.

KSR6450

[quote=NaeNae55;715390] There is one concern. Sometimes it can look suspicious to the DOL that you are paid hourly for an exempt position. They may end up taking a closer look than you would like to all your jobs. This is especially true if several employees do the same job and they are classified as exempt. Keeping clear documention of why your job qualifies for exempt classification, and why you are choosing to be paid hourly, will help offset those dangers.

Good luck!

Nae[/quote]

Thanks Nae, fortunately I am the only person who would qualify as exempt and is part time. I will definitely document as you suggested. Document, document, document - isn't that the HR creed?

System

About a year after I came into HR the DOL sent us a letter to let us know they were planning a visit and needed us to put together some very specific information. Working with our attorney I got everything together and held my breath until DOL day.

The auditor was fine with everything we were doing except that we had 6 or 7 positions misclassified as exempt. These positions affected about 15 EEs who, when informed that their positions were being re-classified as non-exempt, were not happy campers.

Some adjusted, getting OT helped, and some never really did. Folks equated being exempt with being "above" the riff-raff. I think one of them actually used that term in the middle of a whining spree in my office. As I recall, she got some tough love from HR that day.

One person conveyed that it wasn't that she thought she was better than everyone else, but not having to punch the clock made her feel as though the company trusted her more than the average bear. I tried to explain that it wasn't a matter of trust. It was a federal law. Not sure if it ever really stopped rankling with her.

The most difficult was one of the EEs that, even though she received a nice chunk of back OT pay, was incredibly insulted and repeatedly tried to get her position re-classified back to exempt.

Nobody really likes to punch the clock, if for no other reason than it's inconvenient. But, OT pay sure can be a nifty little addition to the savings account.

Sharon

KSR6450

I understand the professional (exempt) status appearing to be a higher 'status' because the duties required are less menial and people feel that they are more valued. But really, as long as they pay me they can call me Judy and make me punch a cow!

I love the avatar Nae! The twins are adorable =D>

NaeNae55

Thank you (hands behind back, head down, rubbing toe in the ground...NOT...lol)

ACU Frank

If they wanted to make me hourly, I'd sign off on it in a heartbeat.

KSR6450

[SIZE=4]It is great Frank, I am actually paid for all the hours I put in. Where I used to work from 6:30/7:00 til 5:00 with no lunch hour and get paid for 40 hours, I now work 6:30/7:00 til 2:00 with no lunch hour and get paid for @37.5/35 hours! I didn't lose any benefits either.[/SIZE]

FunHRBanker

Yes, Nae, they are beautiful! What are their names?

Anyone know how to "subscribe" to a thread so you get email notices when someone posts?

joannie

Go to User CP, then edit options.

NaeNae55

Addison Brianne (Addi) and Alyssa Morgan (Ally).

NaeNae55

[QUOTE=joannie;715477]Go to User CP, then edit options.[/QUOTE]

Hey! At the bottom of the CP - edition options I was able to find an area to change my default set up for replies. I now have [B]bold[/B], [I]italics[/I], [U]underline[/U] and can even see the paperclip. Woo-hoo!!!!!

[SIZE="4"]Looks like I have font sizes too![/SIZE]

joannie

Nae, you have the emoticon for the little guy doing the WhooHoo dance, too.\:D/

FunHRBanker

OOOOOOOOOOOHHHH Loving the Woo hoo dance!! I need to edit my options...