#WorkPolicies #EmploymentChanges #SalaryVsHourly
Hey everyone! 🌟 So, my employer recently made this major shift where they switched all of us from salary to hourly. Can you believe it? I have so many questions swirling around in my head about this unexpected change.
Here’s the deal: we used to be salaried employees working a solid 40 hours a week. But now, they’ve calculated our salary into an hourly rate and are monitoring our hours like hawks. 🦅 We have to hit that 40-hour mark exactly each week, down to the minute. No early clock-ins or late clock-outs allowed, and unauthorized overtime is a big no-no.
So, my burning question is: why the switcheroo? 🤔 Could it be for tax reasons, insurance purposes, or something else entirely? I’m trying to wrap my head around the logic behind this move. I’m clearly missing something here!
Do any of you have insights or ideas as to why companies would make such a shift? 🤷♂️ I’d love to hear your thoughts on this and maybe even brainstorm some possible solutions. Let’s crack this mystery together! 🕵️♀️💡
Looking forward to your input! 🔍💬
He probably thinks salaried employees aren’t actually putting in the hours. It’s bordering on wage theft in my opinion.
Sounds good to me! Salary sucks! Put in your 40 and turn off your phone. You are no longer 24/7 owned by the company.
It has to do with the new minimum wage requirements that are coming in the new year. This is a way for your employer to not cut positions while not shouldering the additional 10k+ per employee.
The DOL expanded overtime pay for salaried workers making less than $43,888 a year just last week. And in January 1, it increases to $58,656. Since I make less than that, I suspect I will get switched from salaried to hourly. My company definitely won’t increase my pay to get above that cap.
Considering businesses are not some super conglomerate all ran by a single person or group, there aren’t any simple umbrella answers for this.
Just a quick assumption, whoever in charge may believe they were overpaying for labor. By moving to hourly, they can avoid people working less than 40 while getting paid for 40. That would make the strong adversity to overtime make sense as well. They seem to be attempting to cut labor costs, essentially, which is gonna open so many other complications.
Because….laws.
The minimum salary threshold went up July 1 to $43,888 from $35,568 per year. If their salary was less than the new minimum, they probably didn’t want to give anyone a raise.
So you all got new contracts? No?
To help us comment can you let us know what country you’re in?
Here is your answer right here:
[New Overtime Exemption Rule: Answers to Your FAQs (adpinfo.com)](https://sbshrs.adpinfo.com/blog/new-overtime-exemption-rule-answers-to-your-faqs#:~:text=To%20qualify%20for%20the%20exemptions%20from%20overtime%20for,provided%20in%20the%20DOL%27s%20regulations%20%28the%20%22duties%20test%22%29.)
TLDR: They don’t want to pay you overtime, and they don’t want to give you a raise.
Salary is only good if you are an executive in the company or routinely work less than 40 hours a week. But no company should be allowed to have policies in place that bans overtime for hourly employees. It is already hard enough to live now because of how much everything costs. So we should be entitled to overtime if we want and not get in trouble for it.
I smell malicious compliance coming.
Your company just failed an audit, where a bunch of the managers got caught forcing employees to work unpaid overtime by deliberately misclassifying them as exempt from overtime requirements.
The company is now trying to avoid a class action lawsuit that will force them to pay for backpay and waiting time penalties.
>What was their reasoning behind this? I know there has to be a tax or insurance reason, right?
There are thousands of tax codes around the world, so if you’re looking for a specific answer you should be more specific about where you work.
Saves them money somehow. That’s the only reason they do it. They certainly aren’t doing it for the employees’ benefit!
If I am understanding this correctly, be 💯 certain you never work 1 minute over your 40. Sounds like you are clocking actual hours, so when you are out, you’re out. If your manager calls you off hours, your response is “sorry, boss, hold on, I need to punch in. Whatever time this takes, I’ll be in that much later tomorrow PER YOUR NEW PAY RULES.” 😀
Biden and Harris pushed through a salary increase for all “Overtime exempt” employees. It will increase again on January 1… So a lot of companies are now quietly losing all that free over time they got from their salaried employees.
Possibily cut back on costs, but depends how salary works there.
Here salary means your hours are stable and you dont have to clock in and out and you can go to appointments during work hours and still get paid and if you work over your alloted 35 hours, you get overtime pay.
So here its definetley because theyre penny pinching. Other places where salary means something else, not sure, may mean something else.