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"Exempt" employee on salary with hourly wage


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Anyone ever heard of this?

Contracted for a certain number of hours a month, say 150.

You make a certain figure an hour but they consider is "salary" because you are guaranteed those hours. Even if you are only scheduled 130 or anything less, due to the company (not you taking any time off), they still have to pay you for 150.

However, anything over that 150 you still collect an hourly rate for. They just don't pay overtime because you're "salary."

 

That was my employers old set-up. Next month we are changing back to good old fashioned hourly wage with overtime. Which in theory should be great .... But I'm leery. The old set up was obviously to their benefit. Why the gift?

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Any recent changes to state law? Is there a union presence within the care system or practice group? Could it be market forces and better pay at a nearby competitor?

 

There are lots of possible reasons, and a few of my hypotheticals could involve smart employment lawyers who work for the care system or practice group reviewing the set-up and thinking, "ummm, this could get us busted someday."

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