our company correctly classifies employees as “exempt” or “non exempt.” However, they have all employees use the punch clock ( I know this is wrong) and exempt employees who work over 40 hours are given regular rate of pay (not time and a half) as a “bonus”, not as salary. I am being promoted to HR director, is this OK to do? It doesn’t seem like it would be.
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2 comments to “bonus” Pay For Exempt Employees Over 40 Hours? |
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Salary employees do not get paid for overtime. It’s the whole reason why companies created salaries: to save money on paying extra. And you should actually be happy about the “bonus” pay, because after you’ve met your 40 hours, your company doesn’t have to pay anything after that. You are actually with a company who values it’s employees and their time, not devalues.
If they are exempt – you don’t HAVE to pay them extra for over 40hrs work – that’s just wasting the company’s money and get rid of the time clock for exempt – switch to timesheets that must be signed off by dept supervisor