#SalaryChange #ExemptEmployee #OvertimePay
Hey everyone, I recently received an email informing me that I am no longer exempt from overtime and will need to start clocking in on Monday. The catch? They’re only going to pay me half of my hourly rate for overtime hours. Can they really do that? 🤔
Here’s the breakdown of the new system they’re implementing:
– Basic salary: $36,279 per year
– Overtime paid on the fluctuating workweek method
– Average hourly rate for overtime calculated based on exact number of hours worked
Possible solutions that come to mind:
– Seek clarification from HR or a legal professional
– Discuss concerns with employer and negotiate for fair compensation
What do you all think about this situation? Any advice or insights to share? Let’s discuss and help each other out! 💬 #JobCompensation #WorkplaceRights
I also have to sign a document that I agree to these terms and I don’t know what to do.
~~I’d think “overtime premium” being 50% means you get the straight 100% pay for those hours plus a 50% premium.~~
~~I’m actually surprised they are paying you as salary non-exempt. It seems a convoluted way to go, when they could just make you hourly.~~
OP seems to be correct. This method of calculating hours for salary exempt workers only lets them earn the premium 50%, not the full 150%.
This change is due to the department of labor updates to the “minimum exempt salary” increasing substantially on July 1st and most organizations are moving folks to non-exempt to avoid the increase.
Kentucky had changed its overtime laws. It’s more complicated, for some reason. If you work 7 days in a row, you get time and a half for all hours worked on the 7th day. That’s the main big difference. You must still be paid time and a half for all overtime. You cannot be paid less than that per federal law.
I used to be non-exempt paid semi-monthly salary (twice a month). Our paychecks showed 86.66 hours x our coverted hourly rate, only when we clocked in more than 40 hours in 7 days did the overtime line kick in.
So they are treating you as salary non exempt. Perfectly legal. So your annual salary divided by 52 is a weekly salary of 697.77. Take that and you do the below example.
Youwork 44 hours. 17.44 per hour for 40 hours. The overtime is paid at one-half which is 8.72. 17.44×40=697.6 plus 8.72×4=34.88
Edited: (this is what I get for doing math at 6 am on a Saturday with no caffeine)
17.44 per hour for 40 hours. 697.60
17.44 per hour do 4 hours of overtime. 69.76
8.72 per hour for each one-half (payroll speak for the 1.5) 34.88
802.24
The overtime rate for the week is 34.88. Which may be different next week if the person works more or less hours because the ratio changes.
Thanks /BumCadillac
One half is a payroll speak point five portion of the 1.5 of overtime.
That makes sense. Good grief. Some of the most beautiful countryside and the most confusing legislation.
Quit. They obviously are not an employer you want to work for
OP I think this letter has a typo. It’s supposed to be 1.5x the normal hourly rate, not half. Hours over 40 will be time and a half.
So for example, a 45 hour week, you would have: $17.44×40 = $697 straight pay and 5 hours at $26.16 = $130 OT. Total of $827 (rounded, not using a calculator, but you get the idea)
Another way to do the math is $17.44×45 straight pay hours = $784.80 + the OT premium of 8.72 applied to 5 hours = $43.60 = roughly $827 (again, not exact because I didn’t use a calculator).