What is the difference between exempt and non exempt salaried employees? I think I'm getting screwed.?

Question

I work in a sales position for a company where I make a base pay per week for 40 hours. However, if we fall under 40 hours , we had to sign an agreement saying we'd be paid at 5.15 per hour, but if we go OVER 40 hours, we are paid a percentage of our sales volume. (This can be bad, there's been weeks where I didn't sell anything and made 4.00 an hour) I was just wondering if this is legal? I think I remember reading something that says there's a minimum salary per week that you have to be at or under to be exempt from being paid time and a half for overtime. I also don't get paid holiday pay. This week I had to work 4th of July AND a 12 hour shift today, which will put me at 45 hours for the week AND a holiday in there too, and I GUARANTEE I will not be paid time and a half OR holiday pay. Can I refuse to work "mandatory overtime" and not get fired if they refuse to pay me accordingly or is this company doing things legally?

Just to clarify when I said there's been weeks where I didn't sell anything and made only 4.00 an hour, that's 4.00 an hour in OVERTIME, not my base, which is STILL less than minimum wage.

in response to someone's answer..i DO not and WILL not EVER work "mediocre". I come to work everyday, I do my job to the best of my ability, and as a matter of fact, I contact ABOVE my quota of people I have to contact a day, while the people that are getting "rewarded" with the better contacts that generate more buisiness for the company (people that make around 100K a year) THESE leads are given to my coworkers who don't do jack s***t, yet, my boss gets onto the other co-workers like myself who are given leads of people who only make around 25K a year or under and expect us to work miracles like my coworkers who are catered to and given 100K leads.. Well ,I'm sure it WOULD be easier to generate buisiness when all you're given is people who make 100K a year, as compared to being given leads of people who only make 25K a year. Who do YOU think is going to bring in more buisiness? It's obvious favoritism..yet another reason I think my job is shady.

Answer 1

The difference is that exempt employees are not entitled to overtime. It is almost certain that you are non-exempt and are entitled to overtime. Even non-exempt employees are entitled to minimum wage. As far as holiday pay, this is not required by Federal law, but you should check the rules of your company. If you are entitled to the day off with pay and they ask you to work, I think you would have to get an extra day's pay or an alternate day off with pay. Most companies have a brochure detailing their policies, and you were probably given this when you started.

Also, the overtime rules are on a weekly basis, but I think that the minimum wage is calcualted daily. So if your pay varies from day to day, I think that you have to be paid the minimum wage on each day.

It seems to me like you are being cheated. I'm not 100% sure of the rules, but I think you need to keep written records of your hours worked and pay in as much detail as possible. Then contact the U.S. Department of Labor. They will know the rules a lot better than me and hopefully they will be able to help. Their website is www.dol.gov, or you can call them at 1-866-4USWAGE (1-866-487-9243), Mon.-Fri. 8AM-5PM. They seem to have a lot of information and you can contact them through their website. Hopefully they will help you collect back wages, and ideally, force your company to pay back wages to everyone else that they cheated.

As far as refusing to work overtime, I'm not sure of this, but I suspect it is possible they could fire you for this. I would pose all of your questions to the labor department. Even if they don't enforce certain rules, they can probably give you advice or at least refer you to someone else. And in the event that something you were cheated on isn't handled by a government agency, you can always sue in small claims court.

Answer 2

I would quit worrying about this stupid sh*t and make an effort to be so exceptional in your job that you don't have to depend on labor laws, or some nuance of exempt and non exempt salaries, etc. etc. etc.

Clint Eastwood once remarked that his father told him "work for free and make yourself invaluable."

The average employee is putting out such a minimum effort that employers don't look at them as particularly valuably employees, and that is why they don't feel any concern about screwing around with their workers and their wages.

Just to give you an example from my own experience, and not to be boastful, but I hold two jobs, and recently I decided that this was getting to be too much, so I put in my notice at one of the hotels where I work.

The man that owns that hotel doesn't like to pay his employees but so much. I, however, am always very proactive to help the guests with any concern, see to any maintenance issue myself, if the maintenance man is off duty, accomodate people with regards to their special requests, sell the rooms hard to make sure we make as much money as possible, etc. etc. etc. Anyway, when I put in my notice, the manager went to the owner and asked him if they could match my wage at my other job and increase my hours so that I would stay with them and drop the other job instead. That was a three dollar and hour pay raise, and I didn't have to do anything to get it but suggest that I might quit. I also can guarantee you that that is way more than that man has ever paid any other person at the same position.

I don't mean to say that I am something great or that I always do the best, but I can tell you this, your fate is in your own hand, and you need to quit worrying about how you are going to make other people do what you want, and start worrying about making other people want you.

Any employer in the world, with very few exceptions is more than happy to have a really responsible trustworthy employee on hand, and will pay what is necessary to keep that person if they actually improve their business and their profit margin.

Make yourself invaluable and then you won't need to depend on the government and its labor laws to fortify your position.

Do otherwise, and you will never rise above mediocrity.

Answer 3

You'll have to check the laws in your particular state. Your state should have a website where you can look for an answer or find a contact number.

Overtime only comes into play when you've PHYSICALLY worked more than 40 hours in a week. Vacation/holiday hours don't count towards the total.

Also, you may want to check with your HR specialist and have them explain how the hours work towards your pay, and how your position is classified.

Answer 4

I think by virtue of the fact that you are paid hourly is a good indication that you are not an exempt salaried employee. I would see a plaintiffs' lawyer that specializes in employment law, esp if this is a larger company. They may be able to take legal action on your behalf working for a contigency fee. They may be liable for punitative damages, so it may not just be your lost wages that can be recovered (look into it, I don't know the exact law for this).

However, FYI, if you are at will (which most people are), they can fire you for any reason. I would look for a new job ASAP, if you can.

Also - you may have seen this but it gives some info on your question:

http://www.dol.gov/esa/regs/compliance/whd/whdfs23.htm

Answer 5

An Exempt Salary person is one who is not subject to overtime compensation. A Non exempt salary person is one who does get compensated for working overtime. You can view the Fair Labor Standards Act on this. As far as your personal situation, you are better off discussing this with the Department of Labor. Be sure to read the FLSA. Also, the DOL will want a copy of your employee handbook.

Good luck.

Answer 6

Well, a lot of companies have a way of getting around those laws. If you refuse, they won't fire you because of that, they'll come up with a better excuse that won't get them in trouble. If I was you I'd get ahold of a lawyer in your state to find out. Good luck:)

Answer 7

i think you need to review your contract and possibly talk to a lawyer- something doesnt sound right.....

you know their are companys out their that pay pretty good- like big box retailers sometimes.