I have been working as a Salary employee for 3 years now. I work from home in the health care field, doing data analysis. Now they say we have to be hourly.

My company has told us that "New Jersey State Law allows salary positions for professionals or management only. " I can't find this anywhere and the employer has yet to tell me where he found it. I am looking for some clarrification. A point in the right direction would help.

Both Federal and state law limit who can be considered an exempt employee, the the majority (though not exclusively) of positions that do so qualify are either management or professional positions. If you do not meet one of the definitions of exempt status, then you cannot be paid exclusively on a salaried basis. While an employer can legally pay a non-exempt employee on a salaried basis as long as they work 40 hours a week or less, if they work more they have to pay overtime anyway, so many companies don't find it worthwhile to create a salaried non-exempt position. Nor are they required to by law.

The law was recently (August 2004) updated and tightened, so less people qualify as exempt than before.

The law in question is the Fair Labor Standards Act, which is the primary Federal law governing how employees are paid.

This should help you determine whether you qualify for exempt status:
http://www.dol.gov/esa/regs/compliance/whd/fairpay/fs17a_overview.htm

thanks for the replies and the links.

From my understanding and reading of information, they could make me a "salary" employee if they want to? but under the FLSA, I don't qualify as one, so is there a benefit that the employer gets out of having me as a exempt employee vs a non-exempt?

No, let me try to explain. "Salary" and "hourly" are not FLSA classifications. They are pay methods. "Exempt" and "Nonexempt" are the FLSA classifications.

All employees are deemed nonexempt, unless they qualify under one of the exemptions the link I gave you defines. If nonexempt, you can be paid either "hourly" or "salary", but you still must be paid at least minimum wage, and must receive overtime pay for all hours worked in excess of the 7-consecutive day period defined by the employer as the workweek.

If you qualify as an exempt employee, with very few exceptions, you must be paid a fixed salary of at least $455/week (NJ may be higher, I'm not sure). You are not legally required to receive any overtime pay or other additional compensation, no matter how many hours you work.

Having said this, however, it is never illegal to treat an employee who qualifies for exempt status as a nonexempt employee; that is the employer's option. It is only illegal to treat a nonexempt employee as exempt.

Pattymd's FLSA analysis is right on.

The New Jersey Wage and Hour law basically mirrors the FLSA but is a bit more protective (ie less people will be exempt).

You can find all the info you need in Subchapter 7 of the New Jersey Wage and Hour Law Regulations (NJAC 12:56-7.1, et seq).

GOOD LUCK!!

sorry to drag this up again. Just looking for a specific clarrification. It is in my best interest. I you probably think i am crazy.

I will try to be as specific as possible:

Is it NJ law that a employer MUST pay his "non-exempt" employees hourly? or can he pay them salary if he chooses?

I do understand this refers to method of payment, but looking to see if this is a law or violation of a regulation. It is assumed that we work 40 hours in a week. If so, please let me know where i can find this information.

i think i found it:

29 CFR 776.5 - Coverage not dependent on method of compensation.


Section Number: 776.5
Section Name: Coverage not dependent on method of compensation.

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The Act's individual employee coverage is not limited to employees
working on an hourly wage. The requirements of section 6 as to minimum
wages are that ``each'' employee described therein shall be paid wages
at a rate not less than a specified rate ``an hour''. 15
This does not mean that employees cannot be paid on a piecework basis or
on a salary, commission, or other basis; it merely means that whatever
the basis on which the workers are paid, whether it be monthly, weekly,
or on a piecework basis, they must receive at least the equivalent of
the minimum hourly rate. ``Each'' and ``any'' employee obviously and
necessarily includes one compensated by a unit of time, by the piece, or
by any other measurement. 16 Regulations prescribed by the
Administrator (part 516 of this chapter) provide for the keeping of
records in such form as to enable compensation on a piecework or other
basis to be translated into an hourly rate. 17