hourly vs. exempt employee

[hugabearjo]

My boss asked me what I thought about going from hourly to exempt today. I really have no experience with exempt. I know overtime is forbidden now so that doesn't effect it. What is the good, the bad and the ugly truth about each.

What questions should I be asking?

Thanks

 

[swilshire]

The problem is you can work a lot of "free overtime" if you are exempt. I would ask the policy for personal time. In my job, for example, we are allowed to take four hours personal time without charging it to vacation or sick leave. That's supposed to make up for the extra time you work for nothing. In reality, you get maybe one hour back for probably 100 you work. Unless it comes with a substantial promotion or raise, I'd pass if I were you if you have the option.

On the other hand, if they have liberal personal leave policies, it's a great way to save up vacation and sick time. You don't have to use it when you need just a couple of hours for a doctor's appt or to pick up a kid from school.

Sheila

 

[eliza61]

My boss asked me what I thought about going from hourly to exempt today. I really have no experience with exempt. I know overtime is forbidden now so that doesn't effect it. What is the good, the bad and the ugly truth about each.

What questions should I be asking?

Thanks

At my job

exempts often work overtime but they have a greater ability to work from home, so on bad weather days, they don't worry about dealing with driving.

Non exempts get paid for any overtime but cannot work from home. Snow days or sick kids have to come out of personal time.

Bonuses are handled differently also.

Exempts get bonuses directly linked ot our groups performance. which imo is nicer because with a large company, some times the group will have a really profitable year while the company overall will not.

Non exempts bonuses are linked to the entire company, so my group could bust their hinies and still get way less because another division did poorly but salary wise, non exempts negotiate through collective barganing. so even with the recession hourly guys got cost of living raises.

 

[Allison]

Has there been a change in your job duties that would qualify you to be an exempt employee or do you meet the qualifications already?

 

[ancestry]

Usually exempt employees must have the ability to make decisions or have some type of authoritative role. Hourly employees do not.

Exempt employees are usually paid a salary rather than an hourly wage and are required to work as much as is necessary to get the job done. I.E. you could be forced to work 50 or 60 hours per week for the same amount of money you did when you were working 40.

There are strict governmental regulations on what positions can be consider exempt. You employer can't just decide to do this. The job description has to meet certain qualifications in order to qualify as exempt.

Check out this website. It might help. http://www.flsa.com/coverage.html

 

[sam_gordon]

Would your job responsibilities change? Assuming they don't (or some are added)...

Go to HR. See if you can pull your time sheets for the last year. Find out how much OT you worked in the last year. Presumably, that's what it takes to get your job done. You should ask for a raise to cover your "lost" OT pay. Yes, OT isn't allowed now. That doesn't mean it won't be allowed in a month or three from now.

What is the policy when you work "extra" hours? Do you get comp time? Do you have to work a certain amount of time before you qualify for "comp". For example, let's say you work 10 hours every day for a week. Can you take a comp day for that, or do you only qualify for comp time if you work a 6th day (and 'x' amount of hours)?

Since 'exempt' employees don't punch a clock, it's easier to take off for Dr's appts, sick kids, kid activities, etc.

There are benefits to both sides.

However, as Allison pointed out, you might want to make sure you qualify legally for being 'exempt'. The general rule is if you are a manager or work on commission, you qualify. If you do become exempt, I'd track your hours. It comes in handy when it's time for a review and you say 'I worked 'x' amount of hours and didn't get comp time or OT, I'd like a raise. Somewhere I have a spreadsheet I built that kept track of work time, comp time, holiday, and vacation time. Came in VERY handy when it was time to renegotiate.

 

[nunzia]

I tried to read the FLSA stuff but so fuzzy...we both have very not-normal job situations. DH works as a vet tech and our best friends own the business...even though there is no time clock everyone is paid hourly but that is really salaried. They all come in early and leave late as required with no extra pay and very often work through lunch (owners bring in burgers, pizza, etc) It is just part of the day at at a medical practice where things can and do happen. My DH gets extra tech time pay for scheduled extra work time, like when he's home and gets called in for emergency surgery, but having to stay an hour late at times isn't covered, nor is going in at night to give an animal fluids, etc..it's just how it is..At my job..a chuch, we get paid the same with no one really tracking anything much although they are trying that this year. The big issue where I work is the program people opposed to admin people. The program people pretty much work as they wish and as their ethics allow..or not..since they have nightly duties, camps, can say they are 'working form home' etc. some play fast and loose with 'work hours', Anyway....not sure what the legality is on this, but since if you lose your job at the church there is no unemployment I am guessing churches operate under different rules than regular businesses...

 

[seashoreCM]

Non-exempts must be paid time and a half for overtime or whatever the wage hour laws of the state require.

Exempt gives the employer all of the the flexibility and the choice and the say on overtime. Paying something for overtime is not out of the question.

In some states an exempt employee cannot be docked although that does not mean much since the tardiness can be written up as an infraction.

The aforementioned veterinary clinic and church are probably operating outside the law as far as labor and wages go.

 

[Arielle22]

Exempt status is based on your job duties as defined under the FSLA. What are your job duties and would you make at least $640 in salary a week?

 

[Ava]

Usually, exempt positions hold more responsibility than hourly positions. If you are already doing work that qualifies you to be exempt, it may be a good career move to take the offer. Just make sure the salary offered is comparable to what you were paid last year as hourly, including any overtime. Even if you aren't allowed to work overtime right now, that could change & with the added responsibility of an exempt position you will probably be working "overtime" anyway. Also compare the vacation/personal time in the exempt offer with the amount of paid-time-off/vacation you currently earn as hourly.

 

[JodiR]

My dh is a supervisor and is exempt. He is salary but paid for overtime.

 

[usnuzuloose]

I used to manage a major gas station and the co labeled us as exempt we worked 60 hrs or more a week and work all kinds of hours if people called in sick. Then one day the co said assist managers would get salary plus over time as they did cashiering,. I thought huh? What about when managers work other shifts and did not get anything extra. One day a manager got fired they sought an atty. Long story short they ended up going back 5 yrs for all managers and had to pay for all the overtime because we were not exempt. So I hope the co knows for sure if they can do this.

 

[LisaTC]

Usually exempt employees must have the ability to make decisions or have some type of authoritative role. Hourly employees do not. Exempt employees are usually paid a salary rather than an hourly wage and are required to work as much as is necessary to get the job done. I.E. you could be forced to work 50 or 60 hours per week for the same amount of money you did when you were working 40. There are strict governmental regulations on what positions can be consider exempt. You employer can't just decide to do this. The job description has to meet certain qualifications in order to qualify as exempt. Check out this website. It might help. http://www.flsa.com/coverage.html

As an HR Admin Assoc that is excellent advice!! You didn't say what your role or title is. You may not be eligible to be exempt even if your boss wants you to be, that's the caveat. There are criteria that absolutely have to be met.

In addition to the site above, here is another good reference:

http://www.hrhero.com/topics/exempt.html

Classifying employees as either exempt or non-exempt is neither exact nor easy. The decision cannot be made arbitrarily, nor should it be made based solely on the job title or the way the employee is paid (i.e., hourly or salaried). Instead, the determination must be made based on the job duties associated with the position. Generally, the employee must be paid on a salaried basis and must meet the salary level as prescribed in the Act. An up-to-date job description is a good starting point. Generally, non-exempt employees’ work is routine with set standards and rules. Depending on the individual’s job duties, examples of non-exempt positions may include: bank teller, bookkeeper, and shipping/receiving clerk. Exempt employees may have some sort of supervisory capacity, but not always dependent on their job duties description.

Good Luck!

 

[KS_Disney_Dad]

IMO it comes down to the manager (and company) you will be working for. How do THEY see your exempt status? Will they be the kind that will work you 50 hours one week but require you to use vacation time when you need to leave an hour early the next week? Or will they not hesitate to let you go to appointments, etc when they arise without burning vacation?

I've been exempt status for about 13 years and that has been the number one determining factor in my happiness (or lack of) in this status throughout my career with various companies.

 

[nunzia]

Non-exempts must be paid time and a half for overtime or whatever the wage hour laws of the state require.

Exempt gives the employer all of the the flexibility and the choice and the say on overtime. Paying something for overtime is not out of the question.

In some states an exempt employee cannot be docked although that does not mean much since the tardiness can be written up as an infraction.

The aforementioned veterinary clinic and church are probably operating outside the law as far as labor and wages go.

Well.. I don't know..very small businesses are often exempt from alot of these rules.., and churches do have have all kinds of different rules as well...as I look over my job description, I see that I am 'non-exempt"...and the no unemployment thing is legit since a former employee tried to collect and it didn't happen.
I guess people could push for things at DH job..but really, they all do the best they can with a job that has medical emergencies, overbooking, longer appointments than scheduled, etc.

 

[cocodog]

My boss asked me what I thought about going from hourly to exempt today. I really have no experience with exempt. I know overtime is forbidden now so that doesn't effect it. What is the good, the bad and the ugly truth about each.

What questions should I be asking?

Thanks

I would definitely NOT do it! He might know something you don't (such as the 'no overtime' will be ending soon). If you are hourly, you cannot be 'made' to work OT without pay. Exempt... you can work 80 hours a week and get paid for 40. I belive he is trying to save money, at least in the long run. JMHO....

 

[3darlings]

You may want to ask your boss what he means by "exempt". That is a term of art used in the FLSA world but that may not be what he is talking about. I am a lawyer who has been involved (unfortunately!) in many federal FLSA issues. Non-federal rules are determined by DOL and they are a bit different. I know there is an interstate commerce component requirement on the non-federal level (and a certain dollar amount level). So your employer may not be covered by the FLSA but your employer will definitely know if they are! If they are covered, the exemptions are pretty specific and are not very broad so most people are non-exempt. As PP said, that is totally dependent on your job duties and you can't "choose" to be exempt (or non-exempt for that matter) - it totally depends on your job duties. The FLSA arena is pretty complicated with lots of court action so don't feel bad about being confused! If you want further guidance, I would go to DOL's website.

 

[sillylily]

My employer has a whopping TEN days additional vacation time available to salaried employees, along with an additional eight paid holidays and an incredible amount of flexibility for doctor's appointments, school functions, etc. for salaried employees that hourly employees are not available for. If your employer is pretty good about the hours an exempt employee keeps, and has even half of the policies of my company, by all means do it. If your job carries a lot less flexibility, rewards and, most of all, if you see salaried people always there before and after their normal shifts, just say no.

 

[windycitymom]

May I piggy-back on your post and ask a question? I currently work as an administrative asst. for a company through a temp agency. I am paid hourly and was told by my company to only work 40 hours as they don't want to pay overtime. However, if I become an employee, they want to make me "salaried" which means I would be paid a salary and I assume, be eligible to work extra hours without additional pay.

I currently work 8.5 hours a day (and take a 30 minute lunch) so the company is truly getting a solid 8 hours of work from me. If I become an employee, I don't mind working overtime as long as I'm paid for it, but as a salaried employee, I think they would want me to long the long hours that they do (let me just say their salary is alot more than mine!). I'm the only admin. in this office.

 

[quentina]

I LOVE IT!! It works great, sometimes many hours, others less. As long as the job gets done, it is usually acceptable. I would never want to be hourly again (I have been salaried for 16 years).