Comments on: Trimming exempts’ salaries: The DOL rules http://www.hrrecruitingalert.com/trimming-exempts%e2%80%99-salaries-the-dol-rules/ Headlines and advice for the practicing recruiter Mon, 20 Jun 2011 04:03:43 +0000 hourly 1 http://wordpress.org/?v=abc By: Debbie http://www.hrrecruitingalert.com/trimming-exempts%e2%80%99-salaries-the-dol-rules/comment-page-1/#comment-15754 Debbie Fri, 25 Sep 2009 18:53:51 +0000 http://www.hrrecruitingalert.com/?p=2041#comment-15754 I would like to know the answer to Ray's question as well! :-) I would like to know the answer to Ray’s question as well! :-)

]]> By: Ray http://www.hrrecruitingalert.com/trimming-exempts%e2%80%99-salaries-the-dol-rules/comment-page-1/#comment-14401 Ray Fri, 28 Aug 2009 13:36:03 +0000 http://www.hrrecruitingalert.com/?p=2041#comment-14401 Can an employer only take 1 person from 35 exempt employes and reduce there salary only and keep the same job description for that person and change the title. Or does it have to be all inclusive? Can an employer only take 1 person from 35 exempt employes and reduce there salary only and keep the same job description for that person and change the title. Or does it have to be all inclusive?

]]> By: Nonprofit News and Resources | Not-For-Profit Accounting http://www.hrrecruitingalert.com/trimming-exempts%e2%80%99-salaries-the-dol-rules/comment-page-1/#comment-13965 Nonprofit News and Resources | Not-For-Profit Accounting Thu, 20 Aug 2009 19:02:45 +0000 http://www.hrrecruitingalert.com/?p=2041#comment-13965 [...] you can violate their exempt status and open your self up to a world of financial and legal hurt. This article and this article offer some guidance that may be of help. You should also make sure there are not [...] [...] you can violate their exempt status and open your self up to a world of financial and legal hurt. This article and this article offer some guidance that may be of help. You should also make sure there are not [...]

]]> By: Hollywood HR http://www.hrrecruitingalert.com/trimming-exempts%e2%80%99-salaries-the-dol-rules/comment-page-1/#comment-13794 Hollywood HR Mon, 17 Aug 2009 20:56:39 +0000 http://www.hrrecruitingalert.com/?p=2041#comment-13794 More and more states are recognizing vacation pay as part of the "compensation" and not as a benefit - I know for sure that CA falls into this category. If your state is not a use-it-or-lose-it state, I would pay it out at the rate it was earned (were I in your shoes). Receiving the amount an employee feels to be entitled goes a long way in morale and may also discourage a claim with the state's DOL. More and more states are recognizing vacation pay as part of the “compensation” and not as a benefit – I know for sure that CA falls into this category. If your state is not a use-it-or-lose-it state, I would pay it out at the rate it was earned (were I in your shoes). Receiving the amount an employee feels to be entitled goes a long way in morale and may also discourage a claim with the state’s DOL.

]]> By: KanieS http://www.hrrecruitingalert.com/trimming-exempts%e2%80%99-salaries-the-dol-rules/comment-page-1/#comment-13791 KanieS Mon, 17 Aug 2009 19:57:19 +0000 http://www.hrrecruitingalert.com/?p=2041#comment-13791 Paying for vacation, as a benefit and not pay, is typically at the discretion of the employer. Although I've always seen payment at the current rate of pay. Paying for vacation, as a benefit and not pay, is typically at the discretion of the employer. Although I’ve always seen payment at the current rate of pay.

]]> By: Staci Foss http://www.hrrecruitingalert.com/trimming-exempts%e2%80%99-salaries-the-dol-rules/comment-page-1/#comment-13789 Staci Foss Mon, 17 Aug 2009 19:26:03 +0000 http://www.hrrecruitingalert.com/?p=2041#comment-13789 Jean M.: My experience has been that vacation should be paid out at the rate it was EARNED, but you may want to seek clarification from legal counsel or the DOL. Jean M.: My experience has been that vacation should be paid out at the rate it was EARNED, but you may want to seek clarification from legal counsel or the DOL.

]]> By: Dallas http://www.hrrecruitingalert.com/trimming-exempts%e2%80%99-salaries-the-dol-rules/comment-page-1/#comment-13787 Dallas Mon, 17 Aug 2009 19:01:17 +0000 http://www.hrrecruitingalert.com/?p=2041#comment-13787 Thanks for your replies KR, Myrna and Staci. The pay cut was arbitrary and efective immediatly without warning. Hopefully we get it back soon as that cut also went for others in the organization. Staci I know how bad 10% is and I am sorry to here that you have even a bigger cut. Thanks Thanks for your replies KR, Myrna and Staci. The pay cut was arbitrary and efective immediatly without warning. Hopefully we get it back soon as that cut also went for others in the organization. Staci I know how bad 10% is and I am sorry to here that you have even a bigger cut.

Thanks

]]> By: Staci Foss http://www.hrrecruitingalert.com/trimming-exempts%e2%80%99-salaries-the-dol-rules/comment-page-1/#comment-13782 Staci Foss Mon, 17 Aug 2009 17:42:46 +0000 http://www.hrrecruitingalert.com/?p=2041#comment-13782 Dallas: Yes, I believe it is legal. Assume you were earning $60,000 per year, and you were offered a position with the same duties and responsibilities for $54,000 per year? Would you take it? Well, if you accepted the 10% pay reduction, that's exactly what you did. You probably did this to keep your job. Earning 90% of your previous salary is still better than unemployment. If the employer has simply closed, gone out of business, you might have been forced to take a lower-paid position on the open market. Now that things have picked up, you would like to see your salary restored. I don't blame you. But your employer may have suffered some financial losses it needs to recoup before it can commit to the additional cash flow required to pay employees at their previous salaries. Maybe they decided the current salaries are actually closer to market. You need to evaluate your position and its worth on the open market. If you know you can get an offer from someone else making more than you are making today, you need to weight that option against the long term potential of the prospective employer v. your current employer. If you cannot replace your current position due to lack of opportunities on the open market, you may have to accept the new salary until things really pick up all over. I know this is a very unpleasant reality (I am down nearly 25% myself). However, a steady job, steady paycheck and full benefits are nothing to scoff at right now. Dallas: Yes, I believe it is legal. Assume you were earning $60,000 per year, and you were offered a position with the same duties and responsibilities for $54,000 per year? Would you take it? Well, if you accepted the 10% pay reduction, that’s exactly what you did. You probably did this to keep your job. Earning 90% of your previous salary is still better than unemployment. If the employer has simply closed, gone out of business, you might have been forced to take a lower-paid position on the open market. Now that things have picked up, you would like to see your salary restored. I don’t blame you. But your employer may have suffered some financial losses it needs to recoup before it can commit to the additional cash flow required to pay employees at their previous salaries. Maybe they decided the current salaries are actually closer to market. You need to evaluate your position and its worth on the open market. If you know you can get an offer from someone else making more than you are making today, you need to weight that option against the long term potential of the prospective employer v. your current employer. If you cannot replace your current position due to lack of opportunities on the open market, you may have to accept the new salary until things really pick up all over. I know this is a very unpleasant reality (I am down nearly 25% myself). However, a steady job, steady paycheck and full benefits are nothing to scoff at right now.

]]> By: Myrna K SPHR http://www.hrrecruitingalert.com/trimming-exempts%e2%80%99-salaries-the-dol-rules/comment-page-1/#comment-13780 Myrna K SPHR Mon, 17 Aug 2009 16:37:27 +0000 http://www.hrrecruitingalert.com/?p=2041#comment-13780 The question is not whether it is legal, the company's position is legal as long as they did not arbitrarily cut salaries and as long as they gave reasonable notice that a cut was coming. The issue becomes one of the company keeping it's word, if you can verify that conditions have improved and therefore a return to previous salary levels is justified you should present this to management and request salaries be returned previous levels. The problems begin when you don't say anything, as long as you remain silent on the issue then it is assumed that you accept the conditions as they are. The question is not whether it is legal, the company’s position is legal as long as they did not arbitrarily cut salaries and as long as they gave reasonable notice that a cut was coming. The issue becomes one of the company keeping it’s word, if you can verify that conditions have improved and therefore a return to previous salary levels is justified you should present this to management and request salaries be returned previous levels. The problems begin when you don’t say anything, as long as you remain silent on the issue then it is assumed that you accept the conditions as they are.

]]> By: KR http://www.hrrecruitingalert.com/trimming-exempts%e2%80%99-salaries-the-dol-rules/comment-page-1/#comment-13769 KR Mon, 17 Aug 2009 13:42:14 +0000 http://www.hrrecruitingalert.com/?p=2041#comment-13769 Dallas - Yes it is legal and companies can do it as long as needed. FLSA says employers cannot make cuts on a short term basis to where it appears they are trying to get around the salary basis requirement. The fact that it has been 9 months would tell me your employees would have a hard time proving the company is violating FLSA. It's not going to be a good move for morale and recruiting could be difficult if word gets out that your company implemented a pay cut and never gave it back, BUT it is legal. I hope you get it back soon. Dallas – Yes it is legal and companies can do it as long as needed. FLSA says employers cannot make cuts on a short term basis to where it appears they are trying to get around the salary basis requirement. The fact that it has been 9 months would tell me your employees would have a hard time proving the company is violating FLSA. It’s not going to be a good move for morale and recruiting could be difficult if word gets out that your company implemented a pay cut and never gave it back, BUT it is legal.

I hope you get it back soon.

]]>