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Exempt to Non-Exempt Employee Pennsylvania

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  • Exempt to Non-Exempt Employee Pennsylvania

    Good Morning,

    Saw a similar thread in the HR Forum for Employers forum but didn't want to hijack the thread.

    I started a new job at the start of the year. I was an exempt employee, paid semi-monthly. My salary of $47,840 was being paid out evenly in increments of $1933.33.

    In March, I was informed I would be switched from exempt to non-exempt as I was eligible to work overtime. I was told to do this , I would have to miss a pay-period as a part of re-payment of being paid more each paycheck. 4 pay periods for the year would be for 3 weeks of work now that I'm hourly. The first was in March, which I missed because I was exempt. The 2nd, which is the check I missed, resulted in me receiving a check for 1 week instead of 3.

    Something seemed off. I understand that my check each week would now be for a smaller amount since it's for 80 hours a week, not 86.66 - that's not my beef. I used our company's non-exempt payroll calendar and created a quick excel spreadsheet. Using the actual gross pay I've received each check up through this point, and the expected amounts I would receive through the rest of 2013. Doing this - at the end of 2013, my gross take home would be $46,000 - 2 weeks short of the $47,840 salary.

    Am I right in thinking I'm being underpaid? Or since I am now hourly, does the 1st paycheck in January of 2014 count towards my 2013 salary since the weeks I would be paid for are worked in 2013? I've currently playing e-mail tag with our payroll dept and wanted to get an outsiders opinion.

    I've attached an image of the payroll schedule, with the previous exempt setup and how things are panning out in 2013 - figure that night help visualize things (green is the actual gross pay I've received, red is the last 2 checks of the year which I will receive extra money for).

    Thanks for your help!
    Attached Files

  • #2
    Honestly, I didn't work through all your numbers, but you need to check to see if the company has a "holdback" on nonexempt pay. another way to state it is they pay in arrears. That is if you left, would they still owe you those two weeks on the back end.

    It is VERY common in nonexempt payrolls and I suspect that is the reason you are off for the year. So check the actual paydates rather than the paycheck date. In your chart you are assuming that the pay period end is the same as or near the paycheck date....rarely is that the case in non-exempts because the employer wants the extra time to be able to calculate OT. And with direct deposits, they need 2-3 days advance notice.
    Last edited by hr for me; 06-19-2013, 07:46 AM.


    • #3
      The company may figure you will be receiving overtime which will bring you up to your promised amount.