Friday, August 27, 2010

SR: 2 Pay Questions and an Unemployment Problem

I have a salaried employee that would like to take a month of unpaid leave to go visit his family in Poland. We get paid the last day of the month. His leave comes in the middle of two months. Can I just pay him an hourly rate for the days he did work in those months?

I would take the monthly pay and divide it by the number of working days in that month and then multiply that by the number of days he worked. So for instance, $5000 monthly salary/22 business days=$227.27 per day. He works 10 days this month, so paycheck is $2272.72

My husband works in a heavy truck dealers parts room in Massachusetts. When hired, he was quoted an annual salary figure - that would be made up of a weekly salary amount and a monthly bonus. The bonus is made up from departmental sales figures and is usual in this industry.

He and the other employees are scheduled to work 9.5 hours everyday - 1/2 hour of this is an unpaid lunch. They are required to work 1 Saturday per month -- which up until very recently was for no extra pay…for some reason (unknown to employees) the employer decided to let them have one day off in the week, when they work on Saturday. Also, once a year, they must work an extra two days to complete the departments inventory, they get no extra pay or time off for this.

The question he has is that his employer seems to believe that because he receives Salary & Bonus, he is an Exempt employee and not entitled to overtime - over 40hrs. The employer also deducts time if he leaves a little early in a given day…not usual for exempt employees correct?

I do not believe that his job classification falls into any exempt category that I can find listed. He stands at the counter and take phone and retail orders for truck parts. His major concern is that if the employees bring this up to the employer or make a legal complaint, they will just be put on the time clock and not receive bonuses…any idea if this is legal?


I won't make a judgment on someone's exempt/non-exempt status, but the boss can't have it both ways. He can't pay a salary and then deduct pay from it for time off. Non-exempt employees can receive bonuses, so that's not the issue. I'd make a call to the local Department of Labor and ask for advice.

Of course, there are risks (as you know) so if it's otherwise working out, you could also let it go.

I am in a bit of a pickle. I left my former employer about year ago after they were having some financial difficulties and were having trouble paying people. (I believe I quit with good cause.) I moved back home to live with my parents and save up some money. The company considered me to be an independent contractor, but after reading about the criteria of independent contractor vs. employee, I think I was an employee. (They determined my rate of pay, they told me when to come in, I did the work to their specifications, I had no written contract that had a start and end date.) After I left the company, I tried reaching out to them to find out when I would be receiving my checks. They never responded. Time passed and I was having difficulty finding a job, even in retail and I had bills coming in. I briefly filed for unemployment, until I could find work. Shortly thereafter, they tried to dispute my unemployment. I argued my case and the state sided with me.

Fast forward to nearly a year later, they have requested a hearing to stop my unemployment eligibility (mind you I have not filed in a year.) After reading the information that they provided to the state, I realized that they lied. What is my next step?

It is coming down to my word versus theirs. During the hearing, I could request by way of subpoena that they provide my time sheets and other documentation to prove that I was an employee and not an independent contractor, but I have a strong suspicion (after seeing what they have done in the past) that they will destroy those documents. What do I do next? Do I try to fight them? Do I pay back the funds? Do I just give up? What is my next step?


I hate to admit it,but I have no idea. You might want to contact a lawyer who specializes in this sort of thing, but make sure you ask about costs first.

Since the state sided with you in the first go-round you might be well situated to win the second go-round. I'm not sure. I've always worked for honest companies.

Sorry I'm not much help.

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