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  • Question About Salaried Employees, & Insurance

    1) In Massachusetts, are there any regulations regarding how many salaried employees an employer is permitted? In this particular workplace all employees are paid a flat weekly rate (salary), so no one is paid overtime regardless of hours worked.

    2) Also, regarding health insurance - I know an employer is not required to pay for an employees health insurance, BUT, aren't there guidelines requiring employers to have some form of health insurance available for the option of enrollment and paying of pocket?

  • #2
    There is no law requiring employers to provide health insurance in MA (although there are many tax incentives and other "carrot" type programs).

    But that may change very soon.

    There are at least 3 major bills pending before the House and Senate here (plus a Governor's version) that are designed to deal with exactly that issue. The House version proposes that any employer with at least 10 employees must offer it. Then the questions come up about full-time vs. part-time, probabtionary periods, etc. These are very complicated issues many of us are working on, but nothing yet.

    As for the "No one gets overtime here...we're all in the same boat" type rules, they typically don't work under the law, because the reasoning is flawed. The law does not examine the employer (save for some very limited exceptions). Rather, it looks to each employee separately and asks whether each employee is exempt or non-exempt (some limited exceptions here, too).

    Does everyone in your firm meet the "exempt" definition or some other exception? Or does the employer meet some other special purpose test?
    This post is by Philip Gordon, a Massachusetts employment attorney (www.gordonllp.com).

    This post is NOT legal advice. It is for general/educational information purposes only. You should not rely on this post if you are making decisions, and it does not create an attorney-client relationship. This post may be considered "advertising" under the MA professional rules for attorneys.

    Comment


    • #3
      Thanks!

      Is there someplace where I can find out what constitutes "exempt" and "non- exempt"?
      I have reason to suspect that this former employer of mine is in violation regarding what I mentioned in the above post.
      For example, and I may be incorrect, but I thought that salaried positions in a workplace were limited to 'mangagement type " personnel.
      What I guess I'm trying to determine is if it is legal to have all employees be paid a flat salary in order to eliminate overtime pay , as well as taxes paid on that. I this particular environment, all employees (9 in all,with the exception of two part - timers) are currently working at least 45 hours a week and sometimes over 50 and getting paid the same amount week after week.

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      • #4
        It is *probably* not legal to have all employees in the workplace paid on a salaried basis, but not for the reason you suggest. Whether an employee can be paid on straight salary or not depends on their exempt/non-exempt status (which is to say depends on their job duties) and it is unlikely, but not impossible, that each and every employee in any given workplace will qualify as exempt.

        You can research exempt and non-exempt status on the US DOL website.
        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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        • #5
          http://www.dol.gov/esa/regs/complian...a_overview.htm
          I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.

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          • #6
            In addition to the Federal laws, you might also take a look at state laws. Start with, MGL c.151, sec.1A (http://www.mass.gov/legis/laws/mgl/151-1a.htm). We evaluate both state and federal law when we're litigating overtime questions in MA.

            Good luck, Phil
            This post is by Philip Gordon, a Massachusetts employment attorney (www.gordonllp.com).

            This post is NOT legal advice. It is for general/educational information purposes only. You should not rely on this post if you are making decisions, and it does not create an attorney-client relationship. This post may be considered "advertising" under the MA professional rules for attorneys.

            Comment

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