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Determine Exempt versus non Exempt Arizona

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  • Determine Exempt versus non Exempt Arizona

    Where do I go to determine if I am correctly calssified as exempt or non-exempt? I am a salaried employee in a engineering firm trying to determine if I should be hourly or not.
    Any help counts.
    Thanks!
    MH

  • #2
    "Hourly" and "salaried" are just payment methods that mean next to nothing by itself. It is the Exempt status that is important. Any employee without exception can legally be non-exempt, and any non-exempt employee can be paid on either a hourly or salaried basis (plus a few others).

    Not every employee can be Exempt however. There are something like 100 or so Exempt classifications defined in law (FLSA). Qualifying for one of the Exempt classification is a function of looking at the actual job duties (not just the title), and sometimes the industry. You mentioned that you work for an engineering company which might mean that you are an engineer, but could mean that you are the janitor. I am going to include a pointer to the so-called White Collar exceptions, which are some of the more common Exempt classifications. Assuming that you are an engineer, take a look at the Professional exception. Just to be clear, that is only one exception among the many. Unless we know your actual job duties, and industry (if there is something more specific that an engineering company). For example, railroads and airlines to name a few have some industry specific exceptions.

    http://www.dol.gov/esa/whd/regs/comp...irpay/main.htm
    "Reality is that which, when you stop believing in it, doesn't go away".
    Philip K. **** (1928-1982)

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    • #3
      DAW:
      Thanks for the link. I determined that I would be considered exempt under the executive portion as all the rules apply. There for I am an exempt-salaried.

      Follow up quesiton: What would the rules be, if any, regarding reducing an exempt-salaried workers pay based on lack of work?

      The situation here is that the owner has reduce ALL salaried and hourly employees wages. Hourly by 10% and salaried by 10%, 30% or 40%. The reduction is due to less work in the consulting engineering industry. We have been told that when "things pick up" we might get our salary restored. Since we have no control over the actual financial health of the company (IE: All the "books" are closed over here), we are expected to take the owners word on the health of the company. He claims he is taking a cut as well, but no one really knows. Although he has made some substanially large purchases he is trying to keep quiet.

      I guess I am trying to determine if we are at the mercy of the single owner or if there are some rules our guidlines that he has to abide by.

      Any insight is greatly appreciated.
      PHX-MPE

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      • #4
        Basically, for exempt-salaried, there ARE no limitations except the salary floor of $455/week. Now, this is relative only to your cutting the salary by XX percent question. If we're talking docking the stated salary based on hours not worked due to business conditions, that is NOT allowed.

        I hope I'm explaining this correctly. Not impugning your intelligence, but did the above paragraph explain the difference so you understand?
        I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.

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        • #5
          I wanted to clarify something. You may qualify for the exempt category but the employee is not required to treat you as exempt. They may continue to treat you as an hourly employee as long as they pay you OT.

          Technically, a President or VP could be classified as non-exempt. However the reason most companies dont do that is because of the huge cost of OT.
          I find that the harder I work, the more luck I seem to have.
          Thomas Jefferson

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          • #6
            I didn't interpret the statement as meaning that the exempt employees were now being paid on an hourly basis. Did I misunderstand?
            I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.

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            • #7
              No, I was just trying to make the point that even tho he qualified for exempt, he could still be treated as non-exempt..if he got OT.
              I find that the harder I work, the more luck I seem to have.
              Thomas Jefferson

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              • #8
                All:
                What a great forum, first of all..!! So thanks to everyones timely responses!!

                Mgmt does not get any OT, or comp time etc. We are expected to work our normal hours even though we have been cut by XX%

                So it sounds like the owner has the ability to make these kind of cuts and the employee/Mgr has to "take it or leave it" and hope that someday we get it back. The fear is that they will cry poor for months/years all the while collecting a tidy profit while we try to make due with 2/3 of our pay.


                Thanks again!!
                PHX-MPE

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                • #9
                  That's pretty much it, yeah.
                  I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.

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