Thursday, November 1st, 2018

Are You Breaking This Employment Law?

“Win or lose, do it fairly.” – Knute Rockne

The whole topic of exempt vs. non-exempt has been a challenging conversation inside CPA firms ever since I can remember.

Many CPA firm leaders think the simple answer to paying people is to “put them on salary.” This might not be a wise choice.

I have heard so many questions over the years about docking a salaried person’s pay if they are continually tardy, leave early, etc.

Please take time to read this informative article via Inc. by Suzanne Lucas @RealEvilHRLady. It is titled, “The Employment Law You Are Probably Breaking.”

Here’s an excerpt:

You can discipline, fire, demote, yell at, or dock vacation time. But, you may not dock pay. And if you do dock pay? You’ve just made that person non-exempt. Which means you not only owe overtime going forward, you owe it going backward. So your attempt to save $50 by docking two hours pay could mean you’ll be out thousands in back overtime pay.

  • "The Way You See People Is The Way You Treat Them, And The Way You Treat Them Is What They Become"
  • Goethe

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