Expert: Shirley McAllister, CPP, PHR - 6/4/2011

Question
We have a salaried employee (a manager) who would like to work on a part-time basis in another of our positions, but that position is hourly.  The salaried employee has asked if he can be paid his salary, plus an additional hourly rate for those hours that he would perform the hourly position.  I know that if we had two different EIN companies, we could have him work as an employee for each, but we only have one company and one EIN number.  I am concerned that he would become a non-exempt employee and jeopardize the exempt status of all management positions.  Your thoughts?

Answer
What he would do is become a non exempt employee and his position would be subject to overtime. He cannot be both exempt and non exempt. This would not jeopardize other managment positions.

He could become non exempt and you could pay him two different hourly wages one for his management duties and one for his other duties. This is permissible. The only downside is that if he works any overtime than it must be paid at the weighed average of the two pay rates. Everything over 40 hours in a week is going to be overtime.

Probably not the best idea for the company.


Shirley