Message-ID: <3085022.1075863722809.JavaMail.evans@thyme> Date: Fri, 28 Apr 2000 03:51:00 -0700 (PDT) From: michelle.cash@enron.com To: felecia.acevedo@enron.com Subject: Re: Part-time exempt employees Cc: sharon.butcher@enron.com, brian.schaffer@enron.com Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit Bcc: sharon.butcher@enron.com, brian.schaffer@enron.com X-From: Michelle Cash X-To: Felecia Acevedo X-cc: Sharon Butcher, Brian Schaffer X-bcc: X-Folder: \Michelle_Cash_Dec2000\Notes Folders\Sent X-Origin: Cash-M X-FileName: mcash.nsf Felicia, In general, you are correct that the salary basis test must be met before someone can be classified as exempt. However, because there are certain exceptions to the salary basis test (for example, licensed attorneys do not have to meet that test), it depends on what the employees are doing as to whether this situation creates a problem under the FLSA. My recommendation would be to obtain information about the jobs performed by these 29 employees so that we can determine whether there is an issue. If they do not fit within one of the exceptions, we probably should have them affirmatively report time so that hours worked over 40 can be paid at the overtime rate. You would use the hourly rate they are paid to determine the overtime rate. If they are not working over 40 hours in a week, it will not be an issue. Let me know if you have questions. Michelle Felecia Acevedo@ENRON 04/27/2000 05:40 PM To: Michelle Cash/HOU/ECT@ECT, Sharon Butcher/Corp/Enron@ENRON cc: Brian Schaffer/Corp/Enron@ENRON Subject: Part-time exempt employees Sharon and Michelle, We have 29 employees in the payroll system that are part-time exempt employees and their pay is calculated on an hourly rate. Unless I understand the FLSA incorrectly we cannot in any way calculate salaries on exempt employees on an hourly basis. If they are reduced hours we would need to determine how we would value their job based on a salary basis otherwise we are treating them as hourly employees and not exempt employees. An exempt employee should only be tracking exception time (i.e. sick, vacation, etc -- any off duty time) but not work hours during the day. An exempt worker according the FLSA can only be paid on a fee basis or salary basis -- not on an hourly basis. If I am off base let me know, otherwise I would like your help with how we should approach getting this corrected and possibly having this covered in a policy on how to deal with employees performing exempt jobs that are working part-time or reduced schedules. Look forward to hearing back from you. Felecia