Do salaried employees get paid extra on leap years?

[PenguinPower]

So would that mean it technically is not salaried? Or is my understanding of salary just screwed up? My understanding of salary was a set wage every pay period, regardless of hours worked. SNE just removed the upper limit, but not the lower limit. This was initially explained to us (my whole department was changed at the same time) in this way: We would be paid a new "hourly" rate, however it would only apply if we worked more than 40 hours. Anything less than 40 and we would be paid at a 40-hour level, anything more and we would get time and a half, just like regular OT. So we could get paid no less than 40 and as many hours as we worked. That ain't what we got, though.

I'm not really upset because there were some changes related to our vacation and other PTO that are great, plus I got a raise out of the deal. It wasn't too comforting to have HR shrug their shoulders at me, but it's all good.

Here's how OT works for SNE. Say you are paid a set salary of $1000 for a week of work.

For week #1, you work 40 hours. As you are non-exempt and salaried, you would be paid $1000.

For week #2, you work 50 hours. As the OT provisions of the FLSA apply, you would be paid your $1000 salary plus half of your regular rate (calculated by dividing your salary by hours work [1000/50 = $20/hr * 0.5 = $10/hr]) for 10 hours, or $100. Total pay would be $1100 for week #2.

For week #3, you work 60 hours. Again, as OT provisions apply, you would be paid your $1000 salary plus half your regular rate. However, this time your regular rate has changed to $16.67/hr (1000/60), so you would be paid a total of $1166.67 ($8.33/hr * 20hr + $1000).

 

[02ranger]

Here's how OT works for SNE. Say you are paid a set salary of $1000 for a week of work.

For week #1, you work 40 hours. As you are non-exempt and salaried, you would be paid $1000.

For week #2, you work 50 hours. As the OT provisions of the FLSA apply, you would be paid your $1000 salary plus half of your regular rate (calculated by dividing your salary by hours work [1000/50 = $20/hr * 0.5 = $10/hr]) for 10 hours, or $100. Total pay would be $1100 for week #2.

For week #3, you work 60 hours. Again, as OT provisions apply, you would be paid your $1000 salary plus half your regular rate. However, this time your regular rate has changed to $16.67/hr (1000/60), so you would be paid a total of $1166.67 ($8.33/hr * 20hr + $1000).

OK, I think I understand now. Kranky mentioned you can be paid at 1.5 OT as well on SNE. That same formula should work in that case too, just substituting 1.5 where you've got 0.5, right? I just checked my pay stub from last week and they're definitely paying time and a half on OT.

 

[PenguinPower]

OK, I think I understand now. Kranky mentioned you can be paid at 1.5 OT as well on SNE. That same formula should work in that case too, just substituting 1.5 where you've got 0.5, right? I just checked my pay stub from last week and they're definitely paying time and a half on OT.

If your company states that your salary is to compensate you for 40 hours specifically, then yes. The above example is for companies who choose to state that the salary is intended to compensate for whatever number of hours will be worked in a week as they will be variable.

 

[02ranger]

If your company states that your salary is to compensate you for 40 hours specifically, then yes. The above example is for companies who choose to state that the salary is intended to compensate for whatever number of hours will be worked in a week as they will be variable.

OK, here's where my confusion came from initially. They told us we would be compensated for 40, but I have worked less than 40 hours since becoming SNE and only been paid for those sub-40 hours, as if I were still hourly. Does that fit into Salaried Non-Exempt somehow? I can say for certain that we were told by my boss's boss we would be compensated for 40 hours.

 

[PenguinPower]

OK, here's where my confusion came from initially. They told us we would be compensated for 40, but I have worked less than 40 hours since becoming SNE and only been paid for those sub-40 hours, as if I were still hourly. Does that fit into Salaried Non-Exempt somehow? I can say for certain that we were told by my boss's boss we would be compensated for 40 hours.

Depends on the state, but usually it is ok for your to be paid less since you are working less than the agreed upon hours. The rate you are paid must be the regular rate based on your salary.

Ex| You are hired for 40 hours a week at $400/wk. You're regular rate of pay is $10.00/hr. You work 32 hours. You would be paid 32 hours * $10.00/hr = $320.

 

[02ranger]

Depends on the state, but usually it is ok for your to be paid less since you are working less than the agreed upon hours. The rate you are paid must be the regular rate based on your salary.

Ex| You are hired for 40 hours a week at $400/wk. You're regular rate of pay is $10.00/hr. You work 32 hours. You would be paid 32 hours * $10.00/hr = $320.

So, how is this different from hourly pay? I thought I was starting to understand, but I guess not. It seems like it's just hourly pay unless you're paid less than time and a half for OT.

I'm not trying to be intentionallly thick or difficult here, I'm honestly having a hard time seeing the difference..................

Edit: I think I'm seeing it after rereading your post with the formula. The main difference, at least in my situation, is my time and a half will actually be worth less the more hours above 40 I work, because the base pay will be spread over more hours. It doesn't appear to make a huge difference, but there is a difference.

 

[IndyColtsFan]

In Indiana, you can't legally be paid monthly barring some exemption I am unaware of in law. It has to be semi-monthly, unless requested biweekly. They don't have to offer biweekly, it has to be requested.

There were definitely people who chose to get paid monthly at the Indiana location. The way HR explained it to me at the time (this was 2001), Indiana law specified that you couldn't require employees to be paid monthly and had to give them the option of biweekly or semi-monthly. I am now trying to recall which option they gave you, as I may have been wrong in my initial post and haven't worked there since 2007. I thought we got paid biweekly but it might have been semi-monthly.

 

[PenguinPower]

So, how is this different from hourly pay? I thought I was starting to understand, but I guess not. It seems like it's just hourly pay unless you're paid less than time and a half for OT.

I'm not trying to be intentionallly thick or difficult here, I'm honestly having a hard time seeing the difference..................

Edit: I think I'm seeing it after rereading your post with the formula. The main difference, at least in my situation, is my time and a half will actually be worth less the more hours above 40 I work, because the base pay will be spread over more hours. It doesn't appear to make a huge difference, but there is a difference.

There is very little difference between SNE and hourly. The only major differences that come into play is when distinguishing between FLSA-nonexempt and FLSA-exempt positions. The method you pay EEs doesn't really make a difference as you've seen.

 

[PenguinPower]

There were definitely people who chose to get paid monthly at the Indiana location. The way HR explained it to me at the time (this was 2001), Indiana law specified that you couldn't require employees to be paid monthly and had to give them the option of biweekly or semi-monthly. I am now trying to recall which option they gave you, as I may have been wrong in my initial post and haven't worked there since 2007. I thought we got paid biweekly but it might have been semi-monthly.

Ah, not familiar with Indiana law prior to 2010. You could be right for back them, but currently what I said holds.

 

[02ranger]

There is very little difference between SNE and hourly. The only major differences that come into play is when distinguishing between FLSA-nonexempt and FLSA-exempt positions. The method you pay EEs doesn't really make a difference as you've seen.

Yeah, you're right. It seems like it's mostly a title thing. Thanks for your patient and clear answers, I've been trying to understand this for months now with no success. :thumbsup: