Exempt Employees
KathyO
1 Post
We have several new managers in our organization who would like to set up several employees as salaried (ie: exempt). I would like to know if it is allowable under both federal and Florida state law to have our bookkeeper in this group. Also, several secretaries for our sales staff. Do these positions qualify to be exempt? Please let me know. Thank you.
Comments
Margaret Morford
theHRedge
615-371-8200
[email]mmorford@mleesmith.com[/email]
[url]http://www.thehredge.net[/url]
Good Luck!
If the positions are non-exempt, then pay them on a waged (hourly) basis, not a salaried one.
Don't go through the fluctuating salaried rigamarole. You don't need to.
I assume if the employees positions are non-exempt, they will not work more than 40 hours per week on a regular basis. If your managers are pushing you to make them salaried, non-exempt, which is possible, then use another method of calculation that FLSA provides at 29CFR778.113(a).
As salaried, the weekly salary is divided by the number of hours the employee is intended to work (assuming it's not over 40). That gives you the hourly rate for computing the overtime (over 40 in a week). So, if the employee, as the FLSA regulations note is suppose to work 35 hours then a weekly salary of $350 is divided by 35, or $10 an hour and $15 for each hour of overtime -- (above 40). If and when the employee works more than 40 hours in that week, the overtime hours are then paid at $15 per hour (time and a half of the hourly rate) in addition to the hourly rate for the first 40 hours (remember the employee's slary was only intended for 35 hours so you only half to pay straight time for the additional 5 hours -- $50 -- since time-and-a-half doesn't kick in until 40 plus).
Explain that to your managers. Then tell them that as salaried employees, they aren't to have deductions from their base salary for absences. As salaried, they get a set amount of pay for a fixed period of time without variation. But as non-exempts, they must be paid time-and-a-half for overtime. In essence they get the best of both worlds (exempt and non-exempt -- in fact, better!). An "undocked" salary for the entire week plus time and a half overtime if worked in that week. I'm sure they'll see how costly that is. And just decide to go with non-exempt, hourly.
If the positions turn out to be non-exmept, then make them hourly. If they turn out to be exempt (which I generally doubt), then make them salaried, in accordance with Section 541 of Title 29 of the Code of Federal Regulations and follow that regulation.
Remeber, the determination of "exempt" or "non-exmept" is based uon the duties they perform as described in Section 541 (either as professional or adminsitrative, most likely if applicable.).
James Sokolowski
Senior Editor
M. Lee Smith Publishers