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#1

Overtime eligibility: Part-time "exempt" employee  
Posted: 08/14/2008 04:40pm   185 Views
  

Are you required to pay overtime to a part-time employee, paid on an hourly basis, but working in a traditionally "exempt" role?  If full-time, they would qualify under the executive exemption.

Thanks

 


Private34235

   
Overtime eligibility: Part-time   
Posted: 08/14/2008 05:23pm  
  

Does this help?

Pro-Ration of Minimum Salary for Part-Time Exempt Employees Disallowed

The U.S. Department of Labor issued an opinion letter earlier this year, rejecting the concept of paying pro-rated salaries for part-time employees performing exempt work. The employer had asked whether it could pro-rate the minimum allowable salary of an exempt employee, paying just $15,000 per year, to reflect a 20 hour per week part-time status. The DOL said it could not. The minimum salary for a properly classified exempt employees is $23,660 annually, which works out to $455 per week, under federal law (California's minimum salaries are higher). Even a part-time "exempt" employee must be paid this amount. The employer's only alternatives are to pay the full $23,660 to the part-time employee, or to pay the employee on an hourly basis, with overtime as applicable.


#1

Overtime eligibility: Part-time   
Posted: 08/15/2008 05:56am  
  

Thank you, Frank.  That does help with part of my dilema, however if this same part-time employee works more than 40 hrs in a workweek would we be required to pay overtime?  Same circumstances whereby the employee is performing "exempt" level work.

 

Thanks again.


Private34235

   
Overtime eligibility: Part-time   
Posted: 08/15/2008 10:26am  
  

Sorry, not an expert on the subject. You might find an answer by doing what I did to get one part of your question answered. Use Google to find relevant material from a reputable source. Chances are that there are others out there with the same issue as you.

 


Private10790

   
Overtime eligibility: Part-time   
Posted: 08/15/2008 11:46am  
  

Why not ask Wage-Hour?  Their national call-in number is 866 487 9243.  It's their rules will apply, unless you will employ the part-timer in a State with regulations that supercede the Feds'.

E. James (Jim)


Private34235

   
Overtime eligibility: Part-time   
Posted: 08/17/2008 05:49am  
  

Let this be your guide:

To qualify for exemption, employees generally must meet certain tests regarding their job duties and be paid on a salary basis at not less than $455 per week.

http://www.dol.gov/esa/whd/regs/compliance/fairpay/fs17g_salary.pdf

 


Private10790

   
Overtime eligibility: Part-time   
Posted: 08/17/2008 04:17pm  
  

To belabor the obvious (my particular specialty), no State may institute rules less favorable to assuring that employees earn overtime than the Federal FLSA provides.  But they can demand a higher minimum wage be paid and/or impose tougher exemption requirements.  Check your governing State law, unless the job fails the federal FLSA standard, in which case you have no chance of exemption at the State level.

E. James (Jim)


Private34235

   
Overtime eligibility: Part-time   
Posted: 08/18/2008 04:17am  
  

This point bears repeating:

The Fair Labor Standards Act (FLSA) does not address part-time employment. Whether an employee is considered full-time or part-time does not change the application of the FLSA.

http://www.dol.gov/dol/topic/workhours/parttimeemployment.htm


Private10558

   
Overtime eligibility: Part-time   
Posted: 11/12/2008 02:28pm  
  
I think the part that stands out is that the employee in question is paid on an hourly basis. Regardless of what type of work they're doing, one of the first provisions of exemption is that they are paid on a salary basis -- regardless of the number of hours worked.

Private11409

   
Overtime eligibility: Part-time   
Posted: 11/18/2008 09:16am  
  

If the employee is non-exempt, he/she must be paid overtime at 1.5X hourly rate for all hours over 40 / week.

Isn't that the purpose of the FLSA -- to ensure employees are appropriately compensated for their time?

If this occurs over an extended period of time (working over 40 hours/week), suggest the manager/HR review job expectations to determine if it is truly a part-time position.

 

 


 
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