Accounting, Payroll & Pension Issues/salaried employee

Advertisement


Question
QUESTION: 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.

---------- FOLLOW-UP ----------

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?

Answer
Please 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.

Accounting, Payroll & Pension Issues

All Answers


Answers by Expert:


Ask Experts

Volunteer


Mike Wellman

Expertise

I can answer questions dealing with financial accounting, tax accounting, bookkeeping and payroll issues. NO PENSION questions.

Experience

Certified in 1980. Experience with Fortune 15 company in finacial accounting, manager at Price Waterhouse and then over 20 years with small business clients.

Education/Credentials
BBA - Baylor University.

©2012 About.com, a part of The New York Times Company. All rights reserved.