Overtime with $25/hr max. limit

[jtech_48103]

Currently employed for a Defense Contractor and is considered Salary. We are paid overtime at a rate equaled to straight time with a maximum not to exceed $25/hr., which means a lot of people work overtime for less than straight time. Overtime is calculated based on any hours over 40hrs a week. Our employer dictates how much personal time and sick time is available, with repercussions if you exceed the amounts. We must charge hours for every available work hour. It seems like we are being treated like hourly works, even though they say we are hourly.

Question: In this case is it legal to not pay 1 ½ for overtime premium and have the $25/hr maximum limit for overtime?

[Sue]

Originally Posted by jtech_48103

Currently employed for a Defense Contractor and is considered Salary. We are paid overtime at a rate equaled to straight time with a maximum not to exceed $25/hr., which means a lot of people work overtime for less than straight time. Overtime is calculated based on any hours over 40hrs a week. Our employer dictates how much personal time and sick time is available, with repercussions if you exceed the amounts. We must charge hours for every available work hour. It seems like we are being treated like hourly works, even though they say we are hourly.

Question: In this case is it legal to not pay 1 ½ for overtime premium and have the $25/hr maximum limit for overtime?

If you are salaried AND exempt, you are not entitled by law to the 1.5 rate of your base salary and really are not required to be paid any hours over 40 in a week. Your salary is your pay, whether it is weekly, monthly, or yearly.

Let me know if you have any further qeustions.

[jtech_48103]

Our company considers us Exempt, but do we fit into that catagory?

People in our department make 50-70k
Work mostly we a computer terminal planning engineering work
Limited amount of Sick & Personal Time.
Must report activities for all available hours to work
Can not make up hours for the previous week.
Sometime people are asked to make up time.

[Sue]

Originally Posted by jtech_48103

Our company considers us Exempt, but do we fit into that catagory?

People in our department make 50-70k
Work mostly we a computer terminal planning engineering work
Limited amount of Sick & Personal Time.
Must report activities for all available hours to work
Can not make up hours for the previous week.
Sometime people are asked to make up time.

New regulations went into effect today.
Visit http://www.ewin.com/articles/exneot.htm
to check for actual details.
Let me know if you have further questions.

[jtech_48103]

What is the definition of an Exempt Employee

[LConnell]

An exempt employee is a person who is exempt from the overtime requirements set by the Fair Labor Standards Act and related such laws at the state level. The process to determine exemption can be quite complicated and easily confused. Though the Department of Labor tried to simplify and update the factors determining exemption earlier this year, the determination can still be quite difficult. You can learn more about exemption factors at: www.usdol.gov.

Let me know if you have any other questions.

[Sue]

Originally Posted by LConnell

An exempt employee is a person who is exempt from the overtime requirements set by the Fair Labor Standards Act and related such laws at the state level. The process to determine exemption can be quite complicated and easily confused. Though the Department of Labor tried to simplify and update the factors determining exemption earlier this year, the determination can still be quite difficult. You can learn more about exemption factors at: www.usdol.gov.

Let me know if you have any other questions.

That link is not working for me, can you check it please?
thanks,
Sue

[LConnell]

This is the corrected link: http://www.dol.gov/

Thanks, Sue.