Is It Illegal to Pay a Salaried Employee Hourly?

Question from HIExempt, Is It Illegal to Pay a Salaried Employee Hourly?

Answer from AI:

When you’re hired as a salaried exempt employee but find yourself being paid on an hourly basis, it’s understandable to feel confused and concerned about your rights and entitlements. The distinction between salaried (exempt) and hourly (non-exempt) employees is significant in the United States, impacting not just how you’re paid but also your eligibility for overtime and other protections under the Fair Labor Standards Act (FLSA).

Understanding Exempt vs. Non-Exempt Status

First, it’s crucial to understand the difference between exempt and non-exempt employees:

• Exempt Employees: Typically salaried and not eligible for overtime pay. They are expected to complete their tasks regardless of the number of hours worked.
• Non-Exempt Employees: Usually paid hourly and are eligible for overtime pay at a rate of 1.5 times their regular hourly rate for hours worked over 40 in a workweek.

Is Your Situation Illegal?

If your employment contract states that you are a salaried exempt employee, but you’re being paid as an hourly non-exempt employee, this could potentially be a violation of the FLSA and your employment contract. The key issues here include:

• Contractual Agreement: If your employer agreed to pay you a salary, failing to do so as agreed might constitute a breach of contract.
• FLSA Violations: Misclassifying employees and failing to pay them according to their correct classification can lead to violations under the FLSA.

Does Your Employer Owe You for Previous Checks?

If it’s determined that you’ve been incorrectly paid as an hourly employee when you should have been receiving a salary, you may be entitled to back pay for the difference in what you were paid versus what you should have been paid under your contract. Calculating this amount can be complex and might require legal assistance.

Steps to Take

1. Review Your Employment Contract: Confirm the terms regarding your compensation and classification as an exempt or non-exempt employee.
2. Document Everything: Keep detailed records of your hours worked, communications with your employer about your classification and pay, and any discrepancies in your paychecks.
3. Speak with Your Employer: Sometimes, these issues can be the result of a misunderstanding or error that your employer is willing to correct once it’s brought to their attention.
4. Consult with a Legal Professional: If you’re unable to resolve the issue with your employer, or if you believe your rights under the FLSA or your contract have been violated, it’s advisable to consult with an attorney who specializes in employment law.

Legal Resources and Assistance

For more information on exempt vs. non-exempt employee classifications and your rights under the FLSA, you can visit the U.S. Department of Labor’s Fair Labor Standards Act webpage. Additionally, many states have their own labor laws that may offer greater protections than the FLSA, so it’s also a good idea to check the laws in your state.

Remember: This information is intended to provide a general overview and should not be construed as legal advice. Employment law can be complex, and your situation’s specifics may require professional legal guidance to ensure your rights are protected.

If you believe your employer has misclassified you or breached your employment contract, consulting with a legal professional can help you understand your options and the best course of action.