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Our tech team has launched updates to The Nest today. As a result of these updates, members of the Nest Community will need to change their password in order to continue participating in the community. In addition, The Nest community member's avatars will be replaced with generic default avatars. If you wish to revert to your original avatar, you will need to re-upload it via The Nest.
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Note: This only affects The Nest's community members and will not affect members on The Bump or The Knot.
Advice to go from hourly pay to salary, please
My co worker wants to go from hourly pay to salary and was told there's "a problem with that because you have to be in charge of others to get paid a salary"???(She's not "officially" in charge but has the title of shop manager on their web page).
I've never heard of such a thing and isn't he just making up an excuse to not have to pay her a salary?
Re: Advice to go from hourly pay to salary, please
The irony is that the laws that are behind their answer are actually PROTECTING your friend from the company taking advantage of her. The salary part would actually benefit them, but potentially really screw her.
Many people don't understand that, generally speaking, the question isn't "hourly vs. salaried" but rather "nonexempt vs. exempt". This is the condition and job review under which job responisibilities are reviewed and determined whether there are Exempt from overtime (usually referred to as salaried) or not exempt from overtime (usually referred to as hourly).
Since, for financial reasons, it is generally in the company's best interest to have people exempt, and avoid paying overtime, there are laws to protect employees who may be misclassified that way. There are tests that a job must pass, based on things such as independent judgment, supervision, other things wrapped up in various job types, in order for a company to comfortably classify a job as exempt.
Since you mention "shop manager", I'm imagining a retail setting. Very few jobs in a retail setting might be classified as exempt, and the concept of being responsible for management of others as the only job responsibility that would qualify sounds very reasonable for a setting like that.
No one can just decide to become salaried without their job responsibilities changing in a way that a company feels very comfortable supporting their position in a court of law that they've done the right thing and are not taking advantage of the employee by eliminating overtime, statutory breaks, etc.
I'm not sure the reasoning that was given but I can say there are reasons for both.
Hourly- The ability to make overtime.
My H's new job is hourly for the 1st 3 months and the amount he makes in overtime (time and a half) is insane. His weekly take home has been HUGE and if it continues this way, it would greatly increase his expected yearly salary.
Salary- Peace of mind....
If he takes a half day or a day off with hourly he doesn't get paid (ughhhh) and that's frustrating. He can take a vacation day but he's losing a lot of money.
Only salary positions get benefits. Right now he's on my insurance which is fine but the one his company offers is WAY better. So when he becomes salary we'll hopefully make the switch to his insurance.
His company is known for keeping people hourly for as long as possible so they don't have to pay benefits. Even though they are paying a boatload of overtime, that's out of the norm for most hourly positions. (he's in a managerial level position)
If you are a non-exempt employee it doesn't matter whether you are paid a salary or hourly, you are still entitled to OT under the Fair Labor Standars Act. You can figure out which you are here: http://www.dol.gov/dol/topic/wages/overtimepay.htm
The fact that you may get a salary has absolutely nothing to do with your entitlement to Overtime & many companies violate the law when they perpetuate the myth that if you get paid a salary you don't get OT.
Your friends' employer is complying with the law & should be commended for protecting her from herself.