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I make under $48,000. I was told by my boss I might be going hourly (this was before the law passed). I barely work any over time (35-37.5 hrs/week) and have 20 days PTO and sick time. If I were to be hourly it would go down to 10 days PTO. She said I would be grandfathered in to keep my benefits.
So why would I become hourly? I work at a university and we many staff that are three quarter time (salaried and working 10 months but paid cover 12) and they would become hourly apparently too.
Is my boss confused or something??
You kind of answered this in your second sentence. At salary, you had 20 days PTO. As hourly, it goes down to 10. I think your company is doing this to cut down on benefits for newly hired people. Be glad you got grandfathered in.
Also, if your new hourly wage is not higher than the amount of your salary, you will see a pay cut due to working 35-37.5 hours a week. You will now be paid just for the hours you work. Not "X" amount of Salary divided by the months).
That's what I'm thinking could happen in a lot of situations, too.
I've seen postings from exempt salaried people who say they regularly work 60-70 hours per week, and are excited that they now will be eligible for overtime pay. But think about something: 60-70 hours a week could easily be an extra $30-40K per year, or even more, in some cases, if the employee gets re-classified as non-exempt hourly, and keeps the same base salary. What if the employer just raised their salary above the new threshold, and keeps them exempt? Sure, the employee gets a raise, but maybe only $3-4K, instead of $30-40K?
Generally they'd end up hiring more workers than paying this much in overtime.
Generally they'd end up hiring more workers than paying this much in overtime.
Which is good for people looking for jobs. One of the reasons unemployment was so bad during and after the recession was that companies were able to make one worker do the job of two.
I think the law itself makes your position change to hourly, not a decision made my your employer.
It isn't a "law" but a rule change. Departments of the US government cannot make laws, only Congress has that power.
The rule is based upon however laws regarding who receives overtime and under what circumstances. Thus it is not totally impossible for Congress to change things if it wished (and could get a POTUS to sign).
It's not specifically because of her being grandfathered in with the benefits. In a general sense though, this change would really only help you if you are currently working a lot of OT. Which, as a salaried employee, you aren't getting paid for. However, in the OP's case, not only will she NOT get any additional money since her salary is simply converted into hourly (no OT), she would actually lose out on benefits had her company not decided to grandfather her in. This was a big issue that many were talking about. A lot of places have different tiers of benefits for salaried and hourly. You get re-classified to non-exempt, you can lose out on benefits.
Quote:
Originally Posted by DorianRo
Salaried exempt is almost not even worth it unless you're close or at 6 digits a year. IS it even worth taking unless you're at 90-100K a year?
It really depends on the type of company you work at. As I mentioned above, some benefits may be exclusive to salaried employees. In addition, not every company (or manager) watches the clock. In many roles, salary means you are no longer "on a clock". You have a role or certain deliverables that are expected of you. As long as you maintain your productivity, they don't care if you work 90 or 20 hours a week.
You kind of answered this in your second sentence. At salary, you had 20 days PTO. As hourly, it goes down to 10. I think your company is doing this to cut down on benefits for newly hired people. Be glad you got grandfathered in.
Also, if your new hourly wage is not higher than the amount of your salary, you will see a pay cut due to working 35-37.5 hours a week. You will now be paid just for the hours you work. Not "X" amount of Salary divided by the months).
Luckiky I still get to keep the 20 days PTO. I will be paid the same amount. So I'll get like20-21/hr. There would be an uproar if everyone's wages decreased lol. This is especially tricky with higher education because we have a lot of three quarter time people.
I see what you mean that makes sense.
Part of the issue is salaried and exempt employees should communicate with their managers and directors about their hours being excessive. I think too many employees are scared to let their bosses know how they feel. So they rely on government to come to the rescue.
And yeah as others have posted I think there are pros and cons to this new law. Overall, I think it is mainly beneficial in terms of getting extra income for those salaried people at $47,500 and less.
I make under $48,000. I was told by my boss I might be going hourly (this was before the law passed). I barely work any over time (35-37.5 hrs/week) and have 20 days PTO and sick time. If I were to be hourly it would go down to 10 days PTO. She said I would be grandfathered in to keep my benefits.
So why would I become hourly? I work at a university and we many staff that are three quarter time (salaried and working 10 months but paid cover 12) and they would become hourly apparently too.
Is my boss confused or something??
I would suggest you talk to your boss.
This is not a new law. It is updating an existing law to cover more workers, and it doesn't mandate changing anyone from hourly to salary.
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