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  • Indiana exempt question Indiana

    I work for a small company in Indiana. We have around 35 people. My company requires all employees to clock in/out. We are not compensated for hours over 40 or more hours, however, we get points for clocking in more than 5 minutes late, regardless of whether we work 40 hours or 90 hours.

    How does this work? Our handbook says we get 1/2 point for every time we are 5 or more minutes late. I could see if we were late and leave at exactly 5 o'clock (Hours for most salary are 8 to 5), but if we come in at 8:06 and stay until 6 or 7PM frequently, what does it matter? What are the laws on this?
    Frustrated!

  • #2
    You are sort of mixing up two very unrelated issues.

    - Exempt is a federal law (FLSA) term meaning that the employee is under statuary law (FLSA) exempt from minimum wage, overtime or both. There are something like 100 or so very specific Exempt exceptions in the FLSA law. Exempt basically alters the normal FLSA payment rules (including minimum wage and overtime). That is all Exempt does.

    - Exempt has nothing what-so-ever to do with attendance issues. If you think that being Exempt somehow makes you immune to attendance or other employer rules, you are almost certainly wrong. It is perfectly legal to make an Exempt employee use a time clock, get permission to go to the bathroom or wear a Rubber Chicken Suit. Exempt is how you pay the employee. Period. It is perfectly legal to have an attendance point system applicable to Exempt employees as long as the FLSA payment requirements are followed.
    "Reality is that which, when you stop believing in it, doesn't go away".
    Philip K. **** (1928-1982)

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    • #3
      You have a few separate issues here.

      Issue one: Late is late. There are no laws requiring any employer to allow any employee to be late, regardless of their status, regardless of how they are paid, regardless of how many hours they worked. If the employer wants you in at 8:00 and you clock in at 8:01, you are late. You are late even if you worked 100 hours that week. And if the employer wants to give you points for it, whatever his system of points may be, the law is not going to say he can't. Regardless. Even if. You and I may think that he is being petty if he does so, and we might even be right. But petty is not illegal.

      Issue two: Salaried is only a pay method and means nothing in and of itself. What matters is exempt or non-exempt. If you make less than $455 per week, you are automatically non-exempt. If you make $455 per week or more, then it depends on your job duties whether you are exempt or non-exempt. ONLY your job duties and possibly your industry. We do not have anything like enough information to determine if you are exempt or non-exempt.

      If you are exempt, then there are no circumstances whatsoever under which the employer has to pay you one single penny above your regular salary, regardless of how many hours you work (and regardless of whether he gives you points for being more than five minutes late -see above). If you are non-exempt, then you have to be paid overtime for any hours over 40 in the workweek, with only very limited exceptions.

      Note that not all salaried employees are exempt, and not all exempt employees are salaried.
      The above answer, whatever it is, assumes that no legally binding and enforceable contract or CBA says otherwise. If it does, then the terms of the contract or CBA apply.

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      • #4
        Thank you for the quick replies!

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