I am always skeptical of employers who insist on paying a salary for a particular position when the position will invariably be required to work over 40 hours/week or, even worse, if the salary is for a ‘part time’ position. Some employers (small business) will even insist that they went through the process of having the position qualified and state that they are not required to pay an hourly rate if the position is ‘part time’ or overtime over 40 hours due to the fact that the position they are offering you is ‘exempt’. If this is a situation that an employee encounters, it is best to have the employer confirm the qualification. As an employer, it will be best for overall morale if this is explained and proven at the hiring process. Please note that most large businesses will have sufficient Human Resources’ personnel to insure that all positions in question have been tested.
I’ve had the unfortunate circumstance of having worked for two employers over the years who did not want to pay for actual hours worked. One of my employers decided that they would pay hourly over the designated number of hours that my salary covered once the employer was making enough money to cover their personal bills. I was part time salaried and received my salary for a specific number of hours worked. If I worked less (which only occurred once in the three year period in which I worked for them) than the required hours, I was to receive the designated salary. If I worked more than the number of hours designated, I was also to receive the salary, however, the owners knew that I was technically a salaried non-exempt employee because the owners would choose to pay ‘hourly’ when business was better. They, however, never deviated from the amount of money they took from the business…they had to pay their bills (personal) and it did not matter what the employees had to pay.
Another situation was working for a retail establishment which the owner stated during the hiring process that the position was ‘exempt’ and he had already gone through the details of qualifying the position, however, it turns out that he never qualified the position and I should have been paid overtime after 40 hours/week. Being in Human Resources, I questioned the wisdom of each of these situations but they were both periods of my life where I needed the income. For all the laws protecting an average employee, there are employers out there that will exploit those laws, therefore, I feel that employees need to be proactive in obtaining all the information needed for self-preservation in a particular position.
Basically, the following are examples of exempt, non-exempt and salaried non-exempt. Please insure that you know which category you fall into and if you are an employer, please insure that your employees are categorized properly.
***An hourly worker making $10.00 per hour is considered a non-exempt employee and would be paid $10.00/hour for each hour worked through 40 hours per week and paid time and a half for any hours worked over 40 hours.
***An exempt employee is a salaried employee who makes $455.00/week or over and meets an Executive, Professional or Administrative criteria. This person will basically work until the ‘job is done’ and not receive any additional monies for their work.
***A salaried non-exempt employee is basically paid a salary per week for convenience for the employer. This individual may work 35 hours/week for a specific amount of money but the position does not fit the criteria for an exempt Executive, Professional or Administrative position. The position is paid salary but is basically an hourly position. If the employee works 39 hours per week, the employee is entitled to be paid an additional four hours’ wages at a regular hourly rate. If the employee works 41 hours per week, the employee is paid the additional five hours at the designated hourly rate and an additional hour at a rate of time and a half their regular hourly rate.
The criteria utilized for an Executive, Professional or Administrative exemption is listed under the federal Department of Labor website: http://www.dol.gov