In Virginia, can we take an exempt salary employee and convert them to an hourly worker? Job duties would remain the same. Is there such a thing as an exempt hourly worker? If a workers job duties remain the same can you change their status year to year, (ie salary to hourly and back to salary?)
Thanks for posting a great question! There is no such thing as an exempt hourly employee. The first requirement of an exempt employee under the federal FLSA, or Fair Labor Standards Act, is that the employee must be paid a weekly salary, and that weekly salary must be at least $455. Hourly employees are always entitled to overtime when they work more than 40 hours per week.
In some cases an employer can take an exempt employee and permanently change their status to hourly employee. This can be done without changing the employees duties. However, if the employer switches the worker back and forth from hourly to salaried exempt, the state and federal enforcement agencies (including the U.S. Department of Labor) are likely to view this as an illegal attempt to avoid paying overtime.
Our suggestion: before you change this employee from exempt to hourly, check with the U.S. Department of Labor at www.dol.gov to make sure you are doing this in a legal manner.
This entry was posted
on Monday, January 12th, 2009 at 10:14 am and is filed under
Compensation, Human Resources Management.
You can follow any responses to this entry through the RSS 2.0 feed.
You can leave a response, or trackback from your own site.
4 Responses to “Converting salary employees to hourly employees”
Leave a Reply
- Attendance Management (1447)
- Benefits (2036)
- Compensation (2351)
- Employment Training (329)
- Hiring and Staffing (1019)
- Human Resources Management (4855)
- Labor Laws (1593)
- Management / Leadership Development (357)
- Performance Management (247)
- Structural Development (41)
- Termination (749)
- Workplace Health & Safety (348)
- Workplace Management (503)