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Managers: Hourly vs Salaried Ohio

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  • Managers: Hourly vs Salaried Ohio

    Just curious if there are any "opinions" out there as to whether or not a Manager (meets all the definitions to be considered a manager), should be paid on an hourly basis or should be considered salaried. I understand if they are salaried, they can be asked to work any amount of hours the company asks them to work.

    I'm trying to analyze the advantages and disadvantages for it.
    Thanks in advanced for any feedback..

  • #2
    "Manager" is just a word with no special legal meaning. And hourly/salaried are just payment methods, which mean very little legally by themselves. When most people throw those words around they are generally talking about the federal FLSA law which defines concepts such as "Exempt". The default is non-exempt, meaning subject to the normal minimum wage and overtime rules. But FLSA is "exceptions-R-us". There are something like 100 or so Exempt classication exceptions in the FLSA. These exceptions are based on job duties and sometimes industry. When we say someone is Exempt, that means that under FLSA they are exempt from MW, OT or both. An example is a sheepherder, who is exempt from OT but not from MW. We generally do not think of sheepherders as being exempt, but under law, they are. That is an example of an industry specific exception. And one of the hundred or so FLSA exceptions.

    The most common exceptions are the so-called White Collar exceptions, such as Executive and Administrative. Again, a lot of people do not really understand these. Some guy selling brushes door-to-door is exempt under the Outside Sales exception, but there not only is no salaried requirement, the poor guy/gal is also exempt from both MW/OT requirements.

    Calling someone a Manager is legally meaningless, because job titles are legally meaningless. But if we say that someone supervises at least two lull time employees and is paid under the salary basis rules and follow all other related rules, then we can say that the employee is Exempt under the Executive exception.

    But not all Exempt are salaried (most are not) and not all hourly are non-exempt. If an employee is Exempt it is because they follow each and every rule associated with one of the 100 or so Exempt classifications. And only 4 of those classifications even have a salaried basis requirement (Admin, Exec, IT Prof, Prof) and the last two do not always have a salaried basis requirement. I will include a pointer to the White Collar exceptions.
    http://www.dol.gov/whd/regs/complian...a_overview.pdf
    "Reality is that which, when you stop believing in it, doesn't go away".
    Philip K. **** (1928-1982)

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    • #3
      First of all, please note that salaried and hourly are merely pay methods and mean nothing in and of themselves. What matters is exempt and non-exempt. Although there is a tendency to try to make the terms synonymous, they are not. Not all exempt employees are paid on salary; not all non-exempt employees are paid on an hourly basis.

      Second, just to be clear, any employee, regardless of status, can be required to work as many hours as the employer wants them to, unless a legally binding contract or CBA expressly says otherwise. (Limited exceptions apply in California and Maine.) The only question is whether or not the employee must be paid overtime. If the employee is exempt, no overtime is required; if the employee is non-exempt, overtime is required when working over 40 hours in a workweek. (Again, some state specific exceptions apply for states that require OT to be calculated daily.)

      That being said, I'm not inclined to say that a manager "should" be either one or the other, not if you're looking for an across the board declaration. There are some circumstances where I could make a case for either. And "should" by whose perspective? The very employee whose employer wants to be paid on salary because of the hours requirement for the position might be the very employee who thinks s/he is entitled to additional compensation for a long work week.
      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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