New FairPay Rules and Switch to Hourly Wage

[windsor20]

I am from Minnesota, and I am (was) a salaried manager of the housekeeping department at a hotel. My GM asked me a couple days ago, "Have you heard of the new labor law, it says that if you make less than $23,660/year you can no longer be salaried and have to be paid hourly." I acknowledge his statement is flawed, but the fact remains that I was moved from being salaried to being paid hourly. I am happy that the new regulations will allow me to be compensated for my overtime hours. However, I am dismayed that I have now lost my long term disability insurance, my paid holidays, and a couple less important benefits of being salaried at our company. I assume that since I was under no contract, this move was perfectly legal for them to do. Am I correct in this assumption?

[Sue]

Originally Posted by windsor20

I am from Minnesota, and I am (was) a salaried manager of the housekeeping department at a hotel. My GM asked me a couple days ago, "Have you heard of the new labor law, it says that if you make less than $23,660/year you can no longer be salaried and have to be paid hourly." I acknowledge his statement is flawed, but the fact remains that I was moved from being salaried to being paid hourly. I am happy that the new regulations will allow me to be compensated for my overtime hours. However, I am dismayed that I have now lost my long term disability insurance, my paid holidays, and a couple less important benefits of being salaried at our company. I assume that since I was under no contract, this move was perfectly legal for them to do. Am I correct in this assumption?

It's not that you cannot be salaried, it's that you are no longer "exempt" as outlined:

In a nutshell: As of Aug. 23, if you make less than $23,660 a year, you're nonexempt and eligible for overtime. If you make more than $100,000 a year, you are not eligible for overtime.

You can visit this site to tell if you qualify as an "exempt" employee:
http://www.ewin.com/articles/exneot.htm

[windsor20]

Originally Posted by Sue

It's not that you cannot be salaried, it's that you are no longer "exempt" as outlined:

In a nutshell: As of Aug. 23, if you make less than $23,660 a year, you're nonexempt and eligible for overtime. If you make more than $100,000 a year, you are not eligible for overtime.

You can visit this site to tell if you qualify as an "exempt" employee:
http://www.ewin.com/articles/exneot.htm

Thanks for your reply; however, I already realized that it is not that I cannot be salaried. That is why I said I know that there is a flaw in his statement.

My question was if I am right to assume that they can move me to hourly compensation, thusly removing the additional benefits recieved by salaried employees, with the explanation being the move is due to the new regulations. Again, I know that the new regualtions do not say that you have to be moved to hourly. I guess what I am saying is that it really upsets me that they are in effect taking benefits away from me and using the new regulations as an excuse for doing so. Especially when the new regulations do not even apply.

[Sue]

As long as it is not discriminatory in nature, such as race, religion, age, etc. then YES, an employer may change hours and/or salary at their discretion.