Hi,

This post is about employees at a commercial printing company in North Carolina.

We have two employees (receptionist and customer service rep) who are compensated as "salaried non-exempt". I'm confused about how they need to be handled as far as compensating for overtime, and dealing with undertime (if they don't work 40 hours).

I have poured over the NCDOL and USDOL sites for anything specific and can't pin down this issue...

I'm concerned specifically with two things:

If they work over 40 hours in a work week, can they earn comp time (my understanding is that since they are non-exempt, comp time is a no-no)? or do we have to pay them time and a half for the overtime?

If they work fewer than 40 hours in a work week, do we have to pay them their full weekly salary?

It seems like if they get 1-1/2 pay for overtime since they are non-exempt, and I can't reduce their pay for hours missed because they are salaried, there would be no good reason to not change them to straight non-exempt hourly employees...

Any council?

Thanks,

VP at Clarks

1. You are correct. Comp time is not permitted for non-exempt employees. If a non-exempt employee works over 40 hours in a week, they must be paid at time and a half for the hours over 40

2.) There is no such classification under the law as salaried non-exempt. The DOL does not recognize it. They don't care if you pay them on a salaried basis as long as they also get the OT when it is earned, but there are no laws about how to handle salaried non-exempt since technically there is no such classification.

Salaried non-exempt is great for the employees, but I have never seen a benefit for it to the employer, except possibly making it easy to calculate wages owed for an employee who always works the same hours. As such, there is nothing legally stopping you from changing the employees to hourly paid and that would be good for you.

You will, however, probably have to deal with disgruntled employees, who won't like not receiving the extra income when they work under 40 hours, particularly if they see being "salaried" as a status thing, which many do.

Thanks so much for your answer...will you please clarify your answer under #1 where you say exempt employees must be paid time and one half for hours worked over 40? I'm assuming this was a mistype? Isn't it true that exempt employees make no overtime by law for hours worked over 40, and that they can (at employers discretion) be given comp hours?

It was a typo. Exempt employees are never legally entitled to additional compensation or comp time no matter how many hours they work.

Typo has been corrected. There are no circumstances whatsoever in which an exempt employee is legally entitled to overtime or comp time, although either can be provided if the employer so chooses.

I'm really confused on the definintion of both of these. I for one do not know what catagory I fall under. My biggest concern is that I am a Salaried manager of an inventory counting company and I am being forced to work 5 days a week (even if there are no inventories..sitting in the office doing nothing) even if when I work 12+ hr days and go over 50 hrs in just 4 days of work.

For both Exempt and Non-Exempt

1.) Can my employer force me to work 5 days a week when I have worked over 50 hrs in 4 or less days?

2.) Am I due any sort of compensation (monutary or days off) for working anywhere from 70 hrs - 110 hrs a week?

And this is along the lines of military and work.

3.) For the days I participate in my military activities is it manditory for the company to dock my pay for the days I was on military leave if...

a.) I worked the 5 days prior to my 2 day tril and the 5 days after?

b.) I was on the military leave for 5 days and during those 5 days my office did not need me to function?

Thank you,
Robert

1. Yes, for both.

2. Not if you a truly exempt.

What type of military activities are you talking about? National Guard? Reserves annual training?

Reserves, 2 day Drills and that 5 day thing was in AT status

My understanding is that they can require that you use vacation or other personal paid time off to replace your salary while on that type of military training.