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Michigan Exempt Employee salary adjusted

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  • Michigan Exempt Employee salary adjusted

    Hi,
    I am an Accounting Manager, hired at the end of 2005 as an exempt employee at $XXX.XX annually. My initial workweek was 40 hours, my hours were & still are 7:00am - 3:30pm with 1/2 hr lunch (which I normally work through). I am paid bi-weekly. Mid 2006 I asked for Mondays off and they agreed, but adjusted my salary to a 32 hour workweek, along with my decreasing my pto benefit accruals to 80%. I stay late often and have frequently brought work home. It is not uncommon for me to work 40+ hours, but now I just don't get paid for it! Is it legal for them to have adjusted my salary down seeing that I am an exempt employee - even though I do my job completely - whether it be in the office or at home. I thought being an exempt employee meant you weren't clocked in & out, you were paid to do a job whether it took 20 hours or 60 hours.
    Last edited by Michigander; 08-02-2007, 03:16 AM.

  • #2
    Your salary is not based on whether you do or do not work 40 hours, or any other number of hours. The number of hours you work is irrevelant as an exempt employee. There is no magic about 40 hours for an exempt employee.

    However, if you are only coming in 4 days a week, there is nothing illegal about adjusting your salary to reflect that.
    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.

    Comment


    • #3
      Thanks for your response.
      I guess I'm confused then... I thought exempt employees were paid a salary based on their job duties and completed work, not on the number of hours worked or their arrival and departure times. Yes, I have Mondays off, but because of that, it's not unusual for me to work 10-12 hour days the rest of the week, especially during busy periods. They're getting away with paying me for 32 hours, but I work 40+. It's a win-win for them! It appears they treat me like a non-exempt employee when it works in their favor.

      Another issue...they changed my status to part-time, so I only earn a percentage of benefits. Can an employee be both exempt and considered part-time as far as benefits go?

      Comment


      • #4
        Yes, it is possible to be exempt and part time, as long as you meet the salary floor of $455.

        So you think you should be able to come in four days a week and get the same salary as when you were coming in five?

        Look at it this way. Although you are correct that an exempt employee is paid based on the job and not on the hours, by that same measure, your salary was not based on 40 hours, but 5 days. You are no longer working 5 days, even though you may be working 40 hours.
        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.

        Comment


        • #5
          So you think you should be able to come in four days a week and get the same salary as when you were coming in five? ...I thought so because not only was I still performing the same job duties, I took on more responsibilities as well.

          Look at it this way. Although you are correct that an exempt employee is paid based on the job and not on the hours, by that same measure, your salary was not based on 40 hours, but 5 days. You are no longer working 5 days, even though you may be working 40 hours.[/QUOTE] Well, I guess when you put it that way, it makes a little more sense...

          It still doesn't seem fair though.
          Thanks.

          Comment


          • #6
            Originally posted by Michigander View Post
            So you think you should be able to come in four days a week and get the same salary as when you were coming in five? ...I thought so because not only was I still performing the same job duties, I took on more responsibilities as well.
            My eyes! My eyes!
            Senior Professional in Human Resources and Certified Staffing Professional with over 30 years experience. Any advice provided is based upon experience and education, but does not constitute legal advice.

            Comment


            • #7
              Originally posted by ScottB View Post
              My eyes! My eyes!
              It's just age, Scott, buddy o' mine.
              I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.

              Comment


              • #8
                I agree it's not fair. You didn't ask me if I thought it was fair, or if I agreed with what the employer was doing. I don't.

                But that doesn't make it illegal.
                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.

                Comment


                • #9
                  I guess that's the price I pay (literally!) for having that day off. I can't believe what they're doing is legal though. So the "exempt" status of my position seems like it really doesn't mean much then, eh?

                  CBG, thanks so much for your input. I really appreciate it.

                  Scott, I apologize for hurting your eyes!!

                  Comment


                  • #10
                    Sure it means something. It means that there are VERY limited circumstances under which your fixed weekly salary can be docked when you are absent. That's the offset.
                    I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.

                    Comment


                    • #11
                      Michigan Exempt Salary

                      Originally posted by cbg View Post
                      Yes, it is possible to be exempt and part time, as long as you meet the salary floor of $455.

                      So you think you should be able to come in four days a week and get the same salary as when you were coming in five?

                      Look at it this way. Although you are correct that an exempt employee is paid based on the job and not on the hours, by that same measure, your salary was not based on 40 hours, but 5 days. You are no longer working 5 days, even though you may be working 40 hours.
                      ok...that being said, I have one more question: My boss, noticing that I consistently work extra hours has mentioned, on more than one occasion, that I do have the option to work 4 10-hr days. This, of course would change my status back to full time and adjust my salary and benefits back to a formula based on 40 hours. Please correct me if I am wrong, but that doesn't sound "exempt" to me. It sounds like they're basing my salary on the number of hours I'm physically in my office.

                      Does that sound exempt or hourly to you?

                      Comment


                      • #12
                        It sounds full time versus part time to me.
                        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.

                        Comment


                        • #13
                          I agree with the other answers. At the end of the day, the "law" says whatever the law says, not what we want it to say.

                          Employers are allowed to make an employee Exempt if certain conditions are true. This is not a requirement. Employers never have to make an employee Exempt. However, if the employer chooses to make an employee Exempt, then the employee generally must be paid on a Salaried basis at least $455/week and there are certain rules that must be followed. The rules are what the rules are, not what we might want them to be. If an employee cannot find the rule they are looking for in the related regulation, then likely as not, the rule does not actually exist.

                          Almost any employee can be required to work almost any hours. Federal law (FLSA) mostly does not set limits on who can be required to work what hours, but rather how payment is handled after the time is worked. Properly classified Exempt Salaried employees never are legally due paid overtime (under law) and almost never have any say (legally) about their hours of employment. [Airline pilots for example are an exception].

                          Also, absent a contract or a collective bargining agreement, most conditions of employment including compensation can legally be changed on a go forward basis given proper notification. Me hiring "Bob" at $1,000/week is not normally a guarentee that at some future point Bob will not see his wages reduced (or eliminated altogether by showing Bob the door). The law says what the law says, nothing more, nothing less.

                          http://www.dol.gov/dol/allcfr/ESA/Ti...CFR541.602.htm
                          "Reality is that which, when you stop believing in it, doesn't go away".
                          Philip K. **** (1928-1982)

                          Comment

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