ย #FLSA #salaryexempt #hourlynonexempt #employeeadvice
Hey there! ๐ It sounds like you’re in a bit of a tricky situation with your employer mentioning a potential switch from salary exempt to hourly non-exempt. Don’t worry, you’re not alone in feeling anxious about this sudden change!
Here are a few things to consider and some advice that might help:
– Salary non-exempt is indeed a real classification, where you receive a salary but are also eligible for overtime pay. It might be worth exploring this option with your employer to see if it’s a viable solution for both parties.
– Since the new FLSA threshold changes aren’t happening until 2025, there is some time to discuss and negotiate with your employer about potential salary adjustments to meet the new requirements.
– It’s important to communicate openly with your employer about your preferences and concerns. Expressing your desire to stay on salary if possible is a good start, but also be open to exploring other options that could work for both you and your employer.
I hope this advice helps ease some of your anxiety! Remember, staying informed and actively participating in discussions with your employer can lead to a mutually beneficial solution. Hang in there! ๐
Not much I can contribute- many businesses are having to change employees to hourly as a result of the new rules coming up. Itโs an unfortunate situation for many employees who may end up making less and less consistent pay also. Some will benefit of course as well.
Salary is the way you get paid and the exempt status is whether or not you are entitled to OT. He can make you salary, non-exempt. What that means to you is that you will still get paid your salary, but you will have to track your hours and will be entitled to OT when you work over 40. Donโt take it personally or as a step back. Depending on the difference between your salary and the increased threshold, a small business may not be able to bring you to the level for exempt status. I can assure you that these conversations are being had everywhere, itโs not about you or your performance. Itโs also not really a bad thing, especially if you work more than 40 hours each week.
Not sure what else can be said. Itโs not your boss making this decision arbitrarily. Itโs them following FLSA guidelines.
A few things I share with people when they get reclassified:
While it may *feel* like a demotion, it isnโt. This is to ensure you are being paid overtime if you work more than 40 hours.
You absolutely should be paid for work you are doing while at work. And allow yourself to unplug and not work when you are away from your job. Non exempt employees clock in and out to make sure they are being paid properly.
The other thing I like to ask people sometimes is โwhy do you want to stay salary?โ The answer usually can help your leaders find a solution or workaround.
The minimum salary is increasing for salary exempt. Your employer either has to give you a raise to meet it, or change how you’re paid. It’s not really something you (or they) get a choice in.
Thereโs nothing you can do. You honestly probably should not have been exempt in the first place, but now the whole country is dealing with this change. At least until the courts inevitably put a stay on it then strike it down like they have before.
Between you and your boss though, they could have made this change any time. Once they research salary non-exempt, theyโre likely going to go with hourly non-exempt, because the prior is often abused. You would get all the benefit of salary, plus the benefit of OT. Straight hourly is fair to both sides.
Thereโs just a weird argument every time this happens, because employees take it as a personal diss or demotion to go to hourly. It has nothing to do with them personally. Itโs always been about the job duties and minimum salary rules.
> I told my employer that I would prefer to stay salary if possible
But why? This should benefit you. If you don’t think it willโwhy?
There were 10,000 people on the SHRM conference call today about this change. The 2025 pay rate threshold is so much higher than current coming on July 1st. Being hourly will still allow you to get overtime and actually have a life if you donโt want to work OT.
The benefits of non-exempt . You will be paid overtime after 40 hours. You can leave on time finally, enjoy that freed up time with your family or self-care.
I don’t have time to read all the comments, but it does have pros and cons. While being insured you that you get paid for hours that exceed 40; the salary non-exempt (which I worked for 5 yrs) meant I got salary benefits, but I was paid over 40 hrs. I got unlimited sick pay and flex time (when not abused, of course). This helped when surgeries occurred. If I was hourly then then surgeries would have been unpaid.
Essentially, we had a different handbook as a non-exempt salary employee. We were in the organization’s salary handbook, not hourly. We would not get points if 3 min late to work.
I would see what the benefits are for salary vs. hourly.
My biggest frustration was that I couldn’t finish some work when they didn’t allow OT. Yet I had to get it complete. Then it would look like I didn’t prioritize my workload.
Stupid question but wonโt not making them salary non-exempt meaning they have a salary but if they work more than 40 hours they are entitled to OT?