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The exemption status of the employee's position thus changes when the docking occurs, making them non-exempt, and thereby eligible for overtime for all extra hours worked" (Dorf 1994). By docking the pay of salaried workers, the company was effectively treating them as salaried employees (hence the restitution of their pay).
The employees who did work the full forty hours, however, are claiming that in doing so the company revoked their exempt status as well and because they worked more than their colleagues, they effectively worked 'overtime.' However, there are significant differences between the case of the engineering firm and that of Martin vs. Malcolm Pirnie Inc. The engineering company did act fairly in retroactively restoring pay, in an effort to comply with the FLSA by treating the workers as salaried, rather than unsalaried employees. The status can be revoked when the company treats exempt employees like nonexempt employees, but in this case the employer's actions seem to reaffirm the employees' treatment as salaried workers.
CONCLUSION
The employees who worked forty hours per week are not entitled to overtime 'back' pay because they remain exempt employees, based on the treatment of the firm.
RECOMMENDATION
Given the actions of the company in regards to recompensing the...
However, there are understandably 'ruffled feathers' amongst the employees who obeyed the policy and were scrupulous in their efforts to work forty hours a week. The company should issue a memo thanking them for their service but still issue a statement which indicates that all workers are salaried and exempt from FLSA labor laws, and no minimum number of hours is required of any employees -- employees need to merely 'do their jobs.
References:
Wages and hours worked: Minimum wage and overtime pay. (2012, June 2). Retrieved from Department of Labor: http://www.dol.gov/compliance/guide/minwage.htm
Dorf, P.R. (1994, June 2). Classify jobs properly to avoid overtime trap. Retrieved from HR Magazine.: http://www.compensationresources.com/press-room/classify-jobs-properly-to-avoid-overtime-trap.php
Kandilov, I.T. (2009). Do exporters pay higher wages? plant-level evidence from an export refund policy in chile. The World Bank Economic Review, 23(7), 269-294.
Walsh, D.J. (2010). Employment law for human resource practice. Mason, OH.
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