Accounting, Payroll & Pension Issues/salaried employee
Expert: Mike Wellman - 9/9/2007
QuestionQUESTION: I am supposed to be a salaried employee for a major pharmaceutical retail chain. As a pharmacist, my base hours are 80 hours per 2 week pay period. If I work less than 80 hours in 2 weeks, I am still paid for 80 hours. However, if I work over 80 hours, my pay is reduced as a "payback" or "owe to the company" for those hours that I was paid on the checks with less than 80 hours worked. Is this an allowable practice? If yes, why? If no, what can I do about it?
ANSWER: Yes it is allowable as long as you are not paid less than minimum wage for any pay period. This is sort of a reverse "comp time" in which, instead of paying you overtime, the time is banked and you are allowed to take those hours off with pay at a later time.
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QUESTION: I do not request the time off. I am sometimes just not scheduled for 80 hours per 2 weeks. I did not ask to be scheduled for less than 80 hours, so how can they be allowed to reduce my paycheck when I work over 80 hours per 2 weeks?
AnswerPlease do not shoot the messenger, but I have given you the answer. It does not violate the law. However, if you have a contract then, see if it violates the contract. If there is a company policy, ask to see the company policy. If it violates company policy, then you may have recourse, otherwise, your options are to find another job or negotiate a better deal for yourself.