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Oct20

Compensation – Exempt Employee Pay

I have a two fold question. I have an employee who is being accommodated under ADA through the middle of 2015. With this accommodation, the employee will be working 20 hours one week and 32 hours the next week. Also, I am in the middle of reviewing classification statuses for the company. In my review, I have determined that the employee’s role is nonexempt versus exempt. Below are my questions: 1. Can I pay the exempt employee hourly during the accommodation? 2. Should I wait to reclassify the position until the accommodation is completed to avoid the appearance of the company being discriminatory? Any insight would be helpful.

It’s acceptable to change an employee’s classification during an accommodation period as long as the reclassification is not due to the employee’s accommodation which it doesn’t appear to be in this situation. Since the classification of every job in the company is being reviewed, it’s reasonable to review the classification of an employee with an accommodation or an employee on a leave of absence. Make sure the entire review process is clearly documented.

It’s in your best interest to reclassify the employee as non-exempt immediately. Under the Fair Labor Standards Act (FLSA), to qualify for exempt status, employees generally must be paid at least $455 per week on a salary basis. Thus, paying an exempt employee an hourly rate is not permissible. Also, keeping the employee as exempt when you know they should be non-exempt constitutes a willful violation of the FLSA. Keep in mind that wage and hour violations continue to be on the rise. Violators may be responsible for back pay and hefty vines.

This entry was posted on Monday, October 20th, 2014 at 1:36 pm and is filed under
Compensation.
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