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"Hourly Exempt" Employees

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  • "Hourly Exempt" Employees

    If a company has employees that meet the FLSA qualifications for exemption can they be paid on an hourly basis, for the purpose of paying straight time for hours worked over 40 in a week? Obviously they don't have to compensate an Exempt employee for hours worked over 40, but what happens in this scenario if a person doesn't work 40 hours that week? Can the company have a policy that the employee must use accrued leave to get to 40? And if that is permissible, but the employee doesn't have leave to use in that scenario, what would be owed to the employee?

  • #2
    While there are some specific jobs (lawyers, teachers, doctors) that can be paid as hourly exempt, for the most part if an employee qualifies to be exempt, and is paid on an hourly basis, that employee will be considered by the DOL to be non-exempt and overtime will be due.

    However, that is completely irrelevant to the fact that ANY employee, regardless of their exempt status, can be required to use paid leave (with or without the employee's permission or even knowledge) if they do not work a full week as the employer defines it. A very, very few exceptions exist so we would need more detail to see if they apply, including your state.
    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.

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