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Short paying Exempt employees
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Short paying Exempt employees
Discuss employment-law issues such as family leave, overtime, disabilities law, harassment, immigration and termination.
I work for a construction company our field superintendents are exempt employees. Recently we have experienced a downturn in business and do not have enough work to keep all of our superintendents wor
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Forums » Topic Forums » Legal Forum » Short paying Exempt employees
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Short paying Exempt employees
posted at 9/14/2011 8:55 AM EDT
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Posts: 3
First: 4/10/2009 Last: 9/14/2011 |
I work for a construction company our field superintendents are exempt employees. Recently we have experienced a downturn in business and do not have enough work to keep all of our superintendents working 5 days a week. My CFO has instructed me to only pay for the hours worked. This is against everything I know about paying exempt employees. I have advised the CFO and he said we'll take our chances. What should I do? |
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Short paying Exempt employees
posted at 9/14/2011 9:05 AM EDT
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Posts: 2442
First: 2/12/2000 Last: 9/14/2011 |
I would do a few things.
1. First advise your CRO of the specific law and send him/her a copy. That would explain your current situation. 2. Consider the option of converting the field superintendents to non exempt and then pay them an hourly rate for hours worked. Just make sure that this is fully communicated to the affected employees and understand that this is a one way trip. That is, the IRS may not accept your changing them back to exempt when you are able to employ them full time. 3. Review all your benefit programs regarding eligibilty rules because you may find that if the hoiurs drop too much some of them will become ineligible for benefits including Health Care. |
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Short paying Exempt employees
posted at 9/14/2011 11:10 AM EDT
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Posts: 3
First: 4/10/2009 Last: 9/14/2011 |
Thank you, I figured you meant CFO. I have informed him and gave him copies of documents stating such and I have kept copies. We cannot change the men to non-exempt because when they start working full time again they work sometimes 50 - 60 hours weeks. And I KNOW they would not want to pay overtime, especially in those amounts. |
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Short paying Exempt employees
posted at 9/14/2011 11:57 AM EDT
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Posts: 2146
First: 2/15/2006 Last: 9/14/2011 |
Agreed...the employer can not change from exempt to non and back to suit their whims.
However there is nothing illegal about decreasing their pay/salary, keeping them exempt and having them work fewer hours. However, that pay should not directly tie back to hours worked and it should not change week to week. The only caveat is that it still has to stay above the federal weekly rate of $455 AND whatever state rate you might have, if any. You can not pro-rate the basic minimum weekly rate. |
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