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switched to salary with no contract and under paid Tennessee

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  • switched to salary with no contract and under paid Tennessee

    I recently started working for a company that has just opened in middle tennessee. they are a gym which i believe makes them a service company. My question lies in the way they have handled me and one other employees pay. until just this payperiod we were considered hourly employees but we worked 55 to 70 hours a week and were only paid for 40. after bringing up this issue and the fact that they only paid us bi monthly and factored in 14 workdays per pay period they decided to fix it by just telling us that we would now be salary employees and be paid $650 per pay period. altho we still recive commissions for sales these average out to about $400 a month. the problem is they are still assigning us to work 60 to 65 hours a week. is this legal or am i just out of luck and need to look for another job? thank you for any help you can offer

  • #2
    - What are your actual job duties?
    - For each workweek (not pay period, workweek) are you paid at least minimum wage in total compensation?

    FYI, "salary" is a pay method and means next to nothing legally by itself. The exempt status is the key concern and that is what the job duties question is related to. There is one set of rules for employees who are both Exempt and Salaried. There are a very different set of rules for employees who are both Non-Exempt and Salaried, which actually look very much like the rules for employees who are Non-Exempt and Hourly, or Non-Exempt and Commissioned, or Non-Exempt and Piece Rate. People sometimes confuse the Salary part of things, when it is really the Exempt status that is important. All Non-Exempt employees no matter what payment method is used tend to be subject to very similar rules.

    The payment frequency does not mean nothing, but it is legally unrelated to whether or not you being paid as much as federal law (FLSA) requires. Payment frequency is a state law issue, and does not by itself address minimum amounts that must be paid. Just when the payments must be paid.

    And it is likely that overtime is also an issue, but I would like to see the answers to my two questions first, since those answers could effect the issues regarding overtime.
    "Reality is that which, when you stop believing in it, doesn't go away".
    Philip K. **** (1928-1982)

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    • #3
      My job duties include sales of memberships watching the front desk when noone else is around and recently myself but not my college have been dealing with billing issues, deposits, and cancelations because they let the lady who was doing that job go to shrink payroll and noone else knew how to do it. but my job description is fitness consultant ( membership sales ). as far as the payweek it is hard to say we are scheduled and work around 60 to 65 hours a week our check periods are from the 1st to the 15th and from the 16th to the end of the month. on each check we are now salaried for 650 per paycheck. we get commission checks for our membership sales on the 22 of everymonth for the sales we did the month before as of right now my largest commession check has been $310 (not as much time to do sales as before as i have been givin the other responsibilities to take care of) while my coliges has been about $600 so i dont belive they can just tell us out of the blue that we are now exempt salary employees can they? expecially at the pay level they have givin us for the hours they are requiring. any more questions i will gladly answer and thank you again for your help

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      • #4
        Based on your job duties, you are non-exempt. This means that:
        - Your employer is legally required to track all of your hours worked. You should do so at home whether or not your employer does this.
        - You must be paid at least minimum wage for all hours worked in the workweek. A salaried payment method per se is not illegal as long as the MW rules are followed.
        - You must be paid a 50% overtime premium for all hours worked past 40 in the workweek. A salaried payment method per se is not illegal as long as the OT rules are also followed.

        Employees who are both Exempt and Salaried can have actual hours worked for purposes of MW and OT ignored. But your duties do not support an Exempt classification, so all three of the above rules apply to you. And the salaried payment method by itself is legally pretty much nothing.
        Last edited by DAW; 11-28-2009, 07:54 AM.
        "Reality is that which, when you stop believing in it, doesn't go away".
        Philip K. **** (1928-1982)

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        • #5
          ank you very much for your help

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