Why was I changed from exempt to non-exempt at my job?
December 14, 2005 8:42 PM Subscribe
Changed from an exempt to a non-exempt employee; what gives?
posted by anonymous to work & money (19 answers total) 1 user marked this as a favorite
First, background: I work in Chicago for the technology division of a large investment bank based in NY. I am within a couple days of receiving my year end bonus and raise numbers. Yesterday, my bosses' boss called me directly to inform me that I was being changed from an exempt to a non-exempt employee, effective in the new year. I was told not to expect a change in my job responsibilities or hours. With my new status, I will make my base salary based on 40 hours per week. In addition, my "overtime premium" will be one half (not time-and-a-half) of my hourly rate for all hours worked over 40 in a workweek. They claim this is not being done to reward or compensate me. Every person in my group and department is exempt AFAIK (though some may have just received the same news I have). I am being told so far that this status will not affect my eligibility for my yearly bonus and raise. I currently work on average 45-55 hours a week, make a base salary of $70,000 and a bonus of $30k-$40k.
Questions/concerns: why the hell would they do this? Knowing I already work over 40 hours a week as a rule, why would they change my status to non-exempt and be effectively paying me more money for the same work? As I said, this is not considered a comp reward. Could they be doing this in reaction to a lawsuit or settlement by a former employee who claimed a violation of the Fair Labor Standards Act? Could this sudden change to non-exempt at my salary level and amount of hours I work in any way forecast my being layed off? Finally, as I understand it, the FLSA defines overtime as being time-and-a-half; why are they defining my "overtime premium" as 50% of my normal hourly rate?