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Holiday Pay Practices - TENNESSEE Tennessee

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  • Holiday Pay Practices - TENNESSEE Tennessee

    Hi I am a Exempt Salaried Supervisor for a Non Union Steel Manufacturing Company in Tennessee. I have a question concerning Holiday Pay Practices. I work 40 hours a week and get paid every two weeks – 80 hours, even though I usually work much more than that. Each Holiday I do get the day or days off and my paycheck looks something like this…

    Regular Pay – 64 hours
    Holiday Pay – 16 hours
    Total – 80 hours

    All of the regular “punch clock” employees also get the day or days off however they are paid Holiday Pay on their checks. Their checks look like this…

    Regular Pay – 80 hours
    Holiday Pay – 16 hours
    Total – 96 hours

    I’ve asked about it and they told me this is normal practice. It just doesn’t seem fair, it this legal?


  • #2
    You're exempt. You're not paid for how many hours you work. In most payroll systems, exempt employees are set up with standard hours of 80 for a biweekly pay frequency and all paid time off reduces the 80 hours. Very common.

    I'm not sure I understand the nonexempt coding, but what is occuring with your paycheck is perfectly fine, legal, and standard/best practice for payroll.
    Last edited by Pattymd; 11-16-2007, 06:50 AM.
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    • #3
      Since you're exempt, you get paid your regular weekly salary no matter how many hours you work. You work to get the job done. You don't get paid anything add'l. over your regular weekly salary if you work over 40 hrs. a week. (& you don't get any add'l. holiday pay)
      Last edited by Betty3; 11-15-2007, 05:34 PM.
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      • #4
        In our computerized payroll system once an employee is entered as exempt we can only input 80 hours for the payroll period. We can try to put in more, but the program reverts it back to 80. For hourly or non-exempt, it allows us to put in as many hours as we need to enter.

        It may simply be the way the computer program is written -- and as the others said above, it makes no difference since you are exempt.


        • #5
          Originally posted by jobamo View Post
          It just doesn’t seem fair, it this legal?
          Take out the holiday issue.

          You work 40 hours, make $455 a week (minimum for most salaried exempt employees). You work 80 hours in a week, you still make $455.

          The $10/hour production employee works 40 hours one week and makes $400. The following week, he works 80 hours and makes $1000. Not only is the pay for that production employee legal, it is legally required.

          There are other tradeoffs, though. You miss a few hours, you may have PTO charged, but, if you don't have PTO available, you get full salary. Not so for the non-exempt employee.
          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.


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