Salary Non-Exempt Status

Does anyone have any insight on the new FLSA laws as it relates to Salary Non-Exempt employees?  Does it really affect them at all?  

Also - any positions within an organization that should be straight Hourly Non-Exempt vs. Salary Non-Exempt?   I'm struggling with what our company is classifying certain administrative positions.  

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  • Hi Stephanie,

    At my previous employer, almost all of our non-exempt employees were salaried as many of them had previously been classified exempt until we looked at the exemptions closely and made changes (just like many employers will now have to do due to the new FLSA). It was an easier transition to make them salaried, non-exempt than to change them to hourly...but it was also a white collar environment and that made sense for us.

    We have some salaried non-exempt in my current employer's white collar environment, as well, but only for full-time positions. The only hourly, non-exempt positions we have are part-time. What is right for your organization will depend on to what extent you have people working overtime, as well as if you pay any bonuses (especially), among other things. We have very little overtime worked in my current employer so it is not onerous for us to have salaried, non-exempt.

    We went through a Wage & Hour audit at my previous employer, as well, so we looked at the exemptions very carefully especially during that process. I'd be happy to chat about it if you'd like. Feel free to reach out to jstephenson@exacthire.com or 317-506-4595.

    Thanks,

    Jessica Stephenson

    ExactHire

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  • I'm with Jessica.  Take a look at the exemptions test for any positions you may have a concern about.  Don't forget to consider the base salary for your salary exempt employees as well.  If their salary is below the new threshold, you'll need to take a hard look and decide what makes most sense for that person/position in your organization.  Best of luck!

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