Salaried Nonexempt II

Open1

Greetings All!

I read the previous thread. I've been the HR Mgr for almost a year for an employer that shortly before my arrival was audited by DOL and INSTRUCTED BY DOL to institute a "fluctuating" salaried nonexempt wage with the "half time" added after 40 hours when applicable.

My problem now is... when an employee has used up all PTO and worked less than 40 hours, or has a disciplinary suspension, if or how I can apply a salary deduction?

Everything I've read or heard implies "guaranteed" salary, yet the boss insists I can deduct per DOL.

Please help. Thanks!

Shadowfax

Well, having read the previous threat you know where I comje from on this, and I think you are stuck with the 'exempt' rules in your situation. Under the 'new' rules you can suspend for full days and other than seriouis safety violations but w/o pto to deduct, you will need full day absences for plersonal reasons to make it ligit. You might consider scrapping the 'salaried' non exempt classification for whatever time you would just as sooon treat ee as hourly - you need not be stuck with the designation if you don't want it - can always go to hourly. I'm not sure how ofter you could manipulate the change w/o getting into some trouble, but typically the exempt/non-exempt is looked at on a pay period basis.

HRLASS

Salaried non-exempt is a legitimate way to pay employees under the FLSA. If the DOL is calling the employees salaried nonexempt and saying pay overtime over 40 hours in a week ("half time added after 40 hours"), then they should be treated as nonexempt employees. I.e. you can deduct for suspensions, absences after running out of PTO, etc. Exempt employees are not determined by title or payment method, but by job duties. If they are nonexempt, salaried or not, they can be docked pay on an hourly basis.

Open1

Thank you very much!

How do I determine the hourly rate? Do I base it on a 40 hour work week?

HRLASS

Yes.

Open1

Thank you again! Have a great week!