Company changed us from Non Exempt to Exempt

[vaeevictiss]

What is the name of your state (only U.S. law)? Virginia

we are on a contract with a government agency, and a few months back all of us (in this building at least, about 30 people) got the following memo saying we were changing from non-exempt to exempt:


To: XXXXXXXXXXXXX
Cc: Human Resources
From: XXXXXXXXXXXX
Date: April 28, 2015
Subject: Change of Status

Following a review of all positions within the department, which included a comprehensive review of job descriptions we have found that your position, Network Support Specialist and associated duties meets the criteria of an exempt (salaried) employee. Positions are classified as exempt if they involve the exercise of a substantial degree of discretion and independent judgment, either in the performance of administrative non-manual work directly related to management policies, general business operations or the utilization of professional skills which require a high degree of training and education, or are supervisory in nature.

Effective May 2, 2015 your position will be reclassified as exempt. As an exempt salaried employee you are by definition not entitled to any payment for overtime for hours worked over 40 in a workweek. However, as a matter of policy your current assignment will pay additional time for any hours worked over 40 at your straight time rate, subject to our usual procedures for approval of additional time hours.

This change will also impact how you complete your timecard. All exempt employees must be certain to have at least 40 hours on their timecard each week. In addition, when over 40 hours per week are worked, please enter “Addl Hours” instead of “Overtime” in the TYPE column on your timecard.

Any questions regarding this change can be directed to me or to our Human Resources Department.


Thank you.



I then replied to the project manager that sent the memo to explain the circumstances around it and all he replied with was "We have performed a comprehensive review of all job descriptions. Changes have been made where needed".

Now, long story short, there was a lot of animosity and underbidding for this contract so this particular company could get it. They ended up not being able to afford the time and a half when we were non exempt. Now with the change, they are allowing us to take OT, but only at straight time. Can they just change that that quickly without letting us know ahead of time? I would imagine its probably how the contract is written.

 

[cbg]

Let's put it this way.

In VA, and under Federal law, there is no law that says they can't change it that quickly with no notice.

 

[eerelations]

Network Support Specialist is a legally exempt position. As such, your employer is not legally required to pay you any more than your salary - even if your employer bills for more hours than 40. The fact that your employer is willing to pay you straight time for any hours worked above 40 in any week is a benefit that the vast majority of exempt positions do not get.

 

[vaeevictiss]

well i suppose i should be happy about that. I dont even know where that title came from. We were something else previously.

 

[Zigner]

well i suppose i should be happy about that. I dont even know where that title came from. We were something else previously.

The title is rather unimportant. The duties are what matter. They could call you Banana Peelers and, if your duties were as defined above, you'd still be properly classified as exempt.

 

[eerelations]

well i suppose i should be happy about that. I dont even know where that title came from. We were something else previously.

Generally, professional-level IT jobs are exempt. This is pretty much most IT jobs except for lower-level routine IT work like Help Desk. "Network Support Specialist" is a standard job title for a professional-level IT job. I know this from having spent many years providing senior-level HR and legal support to IT departments/professional services companies.

And yes, you should consider yourself lucky that you're getting paid for every hour you work as this doesn't happen at most IT professional services companies. The IT professionals will work 45, 50, 60 hours per week and the company bills for that - but only pays the IT professionals for 40 hours. And that's legal.

 

[LeeHarveyBlotto]

The title is rather unimportant. The duties are what matter. They could call you Banana Peelers and, if your duties were as defined above, you'd still be properly classified as exempt.

This. Alternatively, I've seen people with such lofty titles as the OP stated with the functional job of "help desk jockey". Not remotely an exempt position.

 

[eerelations]

This. Alternatively, I've seen people with such lofty titles as the OP stated with the functional job of "help desk jockey". Not remotely an exempt position.

Well until the OP tells us different, he's not a help desk jockey, he is a professional-level network support specialist.

 

[LeeHarveyBlotto]

Well until the OP tells us different, he's not a help desk jockey, he is a professional-level network support specialist.

There's been no evidence presented to accept one over the other. Titles are meaningless.

 

[Zigner]

There's been no evidence presented to accept one over the other. Titles are meaningless.

The OP doesn't mention having an issue with the employer's assertion that his duties are as defined in the memo.

 

[LeeHarveyBlotto]

The OP doesn't mention having an issue with the employer's assertion that his duties are as defined in the memo.

Hence the phrase "no evidence".

 

[Zigner]

Hence the phrase "no evidence".

Actually, that is evidence that the description of his duties is correct.

 

[LdiJ]

Just food for thought...

Typically these types of contracts generally have a set hourly rate to be paid to the agency providing the workers. There are a certain number of hours that need to be covered and they don't care if its 10 people working 80 hours a week, or 20 people working 40 hours a week or 40 people working 20 hours a week.

Therefore, the agency isn't getting time and a half if any of the workers work more than 40 hours per week, therefore they are not willing to pay time and a half. In fact, paying time and a half probably wipes out any profit the agency makes on those particular hours.