fustratedhuman
01-20-2008, 03:57 AM
I work for a very small company. I am a salary employee. One day they closed early, there choice. In my pay they cut me the four hours that they were not open. Is all of this allowed by nj labor laws? I work 730-5 with no overtime for hours over 40. I make over 500 a week but exempt was never brought up ever. Now they decided to cut me and the other office worker to 32 hours and only pay us for those hours for an undetermined time because it is slow. Legal?
salary?!
01-20-2008, 12:02 PM
Looking for the same answer, when i find it, i will pass it on to you.
Pattymd
01-20-2008, 12:19 PM
"Salaried" is merely a pay method. If you mean "exempt", then no, they cannot dock your pay for that reason.
http://www.dol.gov/esa/regs/compliance/whd/fairpay/fs17a_overview.pdf
http://www.dol.gov/dol/allcfr/ESA/Title_29/Part_541/29CFR541.602.htm
There are several different unrelated issues being raised here. I will look at federal rules only, since NJ is not my state.
- We need to make sure that federal law (FLSA) applies. It almost always does, but it is likely that the time I say that it always applies will turn out to be the time that it does not. The rest of the answer assumes that FLSA does indeed apply. (If not, then we are done to NJ laws, if any).
http://www.dol.gov/esa/regs/compliance/whd/whdfs14.htm
- Salaried is just a payment basis, and does not mean much by itself. Exempt Salaried employees are covered by the 29 CFR 541.602 rules, and Non-Exempt Salaried employee (mostly) are covered by the 29 CFR 778.113 rules. We need to find out if the employee is legally Exempt or Non-Exempt. The lack of paid overtime sounds Exempt, but the not paying for partial days worked does not. Assuming FLSA is applicable, something sounds wrong in the handling as described. Exempt status is a function of actual duties performed (not job title) and sometimes the nature of the employer's business. One of the Exempt Salaried rules is that the employee must be paid at least $455/week.
http://www.dol.gov/esa/regs/compliance/whd/fairpay/main.htm
http://www.dol.gov/dol/allcfr/ESA/Title_29/Part_541/29CFR541.602.htm
- Past that it gets complicated. If there is no contract or CBA, employers can generally legally change the conditions of employment on a go forward basis. Let's say that Bob historically is scheduled to work 5 days per week and is paid $1,000/week. It would be legal to change Bob to 4 days per week and pay him $800 (on a go forward basis). Worse, it would be legal in 48 states to reduce Bob's pay to $455/week and tell him to work 7 days per week. The fact that Bob has hired under a different compensation agreement does mean legally that (absent a contract or CBA), that things cannot change for the worse on go forward basis.
TheRed
01-20-2008, 09:16 PM
If the changes are too frequent, the salary basis could be busted. Especially in the third district.
Pattymd
01-21-2008, 06:07 AM
If the changes are too frequent, the salary basis could be busted. Especially in the third district.
Yep.
http://www.dol.gov/dol/allcfr/ESA/Title_29/Part_541/29CFR541.603.htm