Is there a law that states if you supervise 25 or more employees you should be paid salary instead of hourly?
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Is there a law that states if you supervise 25 or more employees you should be paid salary instead of hourly?
Asked on October 10, 2011 under Employment Labor Law, Pennsylvania
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
Yes and no.
No, in the sense that there is no law requiring this: an employer is free to still pay you hourly if it wanted to. As a general matter, employers have considerable discretion to decide whether to pay hourly, salaried, commission-basis, piecework, project basis, etc.
Yes, in two senses. First, the employer can choose, as indicated above, to pay you by salary, not hourly. Second, in the sense that if you a supervisor or manager with at least 25 employees, not only can you be paid on a salaried basis, but you are almost certainly exempt from overtime, so you can be made to work more than 40 hours in a week without additional pay. (Go the Dept. of Labor website to see the tests for when someone is exempt; look under the test for exempt executive employees.)
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