As a U-Haul field manager, William Whitesides spent a lot of time on the road visiting dealerships. But soon after he had an accident, Whitesides was reassigned to office work, where he had a set schedule and had to work under a supervisor.
When he arrived 15 minutes late on the first day, he was suspended without pay for three days. A few months later, he was fired for.
Whitesides sued for overtime, claiming he was improperly classified as an exempt administrative employee. A lower court rejected his claim, but the state Supreme Court sided with him.
To qualify as an exempt administrative employee under state law, the court said, a worker must be paid on a salary basis and work under only general supervision. U-Haul failed on both counts.
U-Haul had tried to make a partial fix. Two years after the firing, the company did admit that it made a mistake in withholding pay for the three-day sus-pension. It sent him a check, in-cluding interest. But that fix came too late to take advantage of the "window of correction" for paying an employee who was supposed to be on salary. (Whitesides v. U-Haul Co. of Alaska, No. S-9204, Alaska S. Ct., 2001)
Advice: Be careful not to ease employees who are nonexempt into salaried positions by simply giving them a fixed income.
Also, don't treatlike hourly employees by taking small deductions and penalties from their paychecks. That's one of the most common ways to lose the exemption.
Note: Get advice on the exemption rules and other Fair Labor Standards Act details at the Labor Department's Web site, www.elaws.dol.gov/.
Who is exempt?
Call us at (800) 543-2055 and we'll fax you our free, two-page checklist, Exempt vs. Nonexempt: Where to Draw the Line.
For more advice on the FLSA, order NIBM's newest book, You and the FLSA, by calling (800) 543-2055 or visiting www.nibm.net.
Like what you've read? ...Republish it and share great business tips!
Attention: Readers, Publishers, Editors, Bloggers, Media, Webmasters and more...
We believe great content should be read and passed around. After all, knowledge IS power. And good business can become great with the right information at their fingertips. If you'd like to share any of the insightful articles on BusinessManagementDaily.com, you may republish or syndicate it without charge.
The only thing we ask is that you keep the article exactly as it was written and formatted. You also need to include an attribution statement and link to the article.
" This information is proudly provided by Business Management Daily.com: http://www.businessmanagementdaily.com/955/changing-work-conditions-may-strip-workers-exemption "