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Due to financial constraints this year, our highly compensated employees, of which there are many, will be taking 10% cuts in pay. All of our employees are exempt. Will this result in a problem with e
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change in status

posted at 3/25/2009 5:15 AM EDT
Posts: 17
First: 2/23/2009
Last: 7/13/2009
Due to financial constraints this year, our highly compensated employees, of which there are many, will be taking 10% cuts in pay. All of our employees are exempt. Will this result in a problem with exempt status. although none of them will be hitting the $455 salary....
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change in status

posted at 3/25/2009 5:20 AM EDT
Posts: 41
First: 2/16/2009
Last: 4/26/2009
Not necessarily. However, I struggle with the idea that 100% of your workforce is exempt.
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change in status

posted at 3/25/2009 7:31 AM EDT
Posts: 1771
First: 10/24/2002
Last: 9/14/2011
I agree - how can this be possible? I've been trying to imagine a 100% exempt org chart, and I just can't picture it...
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change in status

posted at 3/25/2009 11:59 AM EDT
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First: 2/15/2006
Last: 9/14/2011
Sounds farfetched to be 100% exempt, but possibly in a high tech computer company that has little to no "admin" positions? Or other such weird combination?

I know that we have laid off most of our admin positions or transferred them to other lines of business such that our corporate office is now staffed with just exempts (Other lines of business are still 90% nonexempt).
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change in status

posted at 3/25/2009 12:07 PM EDT
Posts: 79
First: 3/19/2008
Last: 10/15/2009
Possibly the non-exempt positions are contracted or outsourced?
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change in status

posted at 3/26/2009 3:41 AM EDT
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First: 2/23/2009
Last: 7/13/2009
Our entire company is made up of engineers. We are a computer forensics company
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change in status

posted at 3/26/2009 8:56 AM EDT
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First: 2/12/2002
Last: 11/2/2009
You have no people in a mailroom? No help desk PC technicians? Computer operators?
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change in status

posted at 3/26/2009 9:02 AM EDT
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First: 10/24/2002
Last: 9/14/2011
Receptionists? Accounting clerks? Admin assistants?
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change in status

posted at 3/26/2009 10:00 AM EDT
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First: 2/23/2009
Last: 7/13/2009
yes we do, but, once again, they everyone on salary despite my arguments against. PC support, receptionist etc
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change in status

posted at 3/26/2009 10:21 AM EDT
Posts: 1771
First: 10/24/2002
Last: 9/14/2011
Nothing wrong with those jobs being on salary...but legally they ARE non-exempt.
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