Hello all,

Is there a way to conviently provide salaried employees overtime pay beyond 40 hours or PTO compensation time for those hours?

In the past when I worked for large corporations, we were “salary exempt” employees but still received either PTO hours to be used later, or our hourly rate as overtime pay. But not exactly sure how this was executed on the financial/business side.

I’ve heard of establishing a second company to pay those employees “hourly” whenever they go beyond the 40. But that doesn’t seem like it would be the easiest option.

We are a government contractor, so we do track hours against each project.

Thank you!

  • hobbes630@alien.topBEnglish
    1·
    10 months ago

    There are two classifications of salaried employees. Salaried exempt and Salaried eligible for overtime. There are massive lawsuits and proposed law changes going on right now because of misclassifying employees by companies. A lot of people are misclassifying salaried employees to try to skirt the federal overtime labor law by saying they are salaried exempt.

    Salaried exempt is generally for management positions like executives or “white collar” workers. If you clock in and out you probably are being misclassified.

    Salaried eligible for overtime is a regular employee who if they work more than 40 hrs in a week are to be paid 1.5 their rate for any hours over 40 in a given week. This is federal labor laws and has been for a very long time.

    https://www.dol.gov/agencies/whd/fact-sheets/17a-overtime

    To answer your question, contact your payroll provider and make sure they are classified as salaried eligible for overtime. You then have their base rate depending on their payment frequency, weekly, biweekly, monthly, etc and their overtime rate of 1.5. So the payroll processor will automatically compute the base rate, plus overtime rate and calculate taxes benefits etc.

    I use Gusto and it’s super easy, they enter their times on a time tracker and it does everything from there.