Urgent-pay practice for exempt employees?

[satyavati]

What is the name of your state? North Carolina

I am a registered nurse currently working as a coordinator (low level management) in a hospital. My position is listed as 'exempt'. We are not paid overtime for over 40 hours in a week-however, if we work greater than 40 hours in a week and the hours over 40 are worked as staff nurses (on the floor rather than in a coordinator position) we are given what is called "alternative pay" which is the base rate for a new graduate RN for each hour over 40 that we worked. If we do not work 40 hours in a given week, the difference between what we worked and 40 hours is taken out of our earned, accumulated PDO (vacation/sick) time. Is this legal? How can you be a "salaried" "exempt" employee and be docked out of your sick/vacation time when you don't work 40 hours in a week? My understanding of a salaried position is that you are paid for the job, not for the hours. Please, I need some information on this right away.

 

[Beth3]

Assuming your position is properly classified as exempt, you do not need to be paid OT at all, regardless of how many hours you work. If you are occasionally working as a staff nurse, your employer's decision to pay you for that work time is basically a "gift" and they need not pay you OT for those hours.

If you work less than 40 hours/week, yes your employer may dock any paid time off benefit they offer. The only illegality which might arise would be if they actually docked your pay, which can be done but only for very specific reasons outlined in the Fair Labor Standards Act.

 

[satyavati]

I thought that the definition of a salaried exempt employee was that you were paid for a job, not hours worked. What's the point of getting a salary if they take hours away from you if you don't hit 40 hours in a week? As far as I know, I should be paid for a flat 40 hours regardless of how many actual hours are worked. There should be no overtime, and my vacation/accrued time shouldn't be touched to make up hours less than 40, since I am not being paid per hour but by salary. Have I got this all wrong? I was trying to figure it out on the DOL website this morning. Thanks.

 

[cbg]

The DOL has established that an exempt employee CAN have their vacation/personal/sick time docked if they do not work the number of hours that their employer has established as a regular work week. That number might be 40, as in your case; it might be 35, it might be 37.5, it might be 45 or 50. While you are correct that an exempt employer is not paid on the basis of the number of hours they work, their salary is determined on the basis of a "standard" work week. I understand the point you are making, but the fact of the matter is that the DOL has declared this practice legal, regardless.

There are two states that have placed limits on how this can be done, but North Carolina is not one of them.