Dept. of Labor Audit for Our Company
When I was first hired, I was hired as a "salaried" employee even though I had no actual management duties. This was common practice at the company. A complaint reached the Dept. of Labor and they came in and did an audit of all the workers at our company (about 150 at the time). As a result of the audit, many of us were reclassified as "Non-exempt." As a result, we now get paid for all hours we work. The key in determining the exempt vs. non-exempt status had to do with whether the employee had management or supervisory responsibilities over a group of individuals. If you didn't, then you were non-exempt. As for determining the pay rate, it was done like Toni suggested. They took our current annual salary, divided by 52 to determine the weekly equivalent, and then further divided that by 40 to determine the hourly equivalent. Needless to say, it helped my paycheck.
