I am paid salary monthly now, My employer is telling me she HAS TO PAY ME HOURLY. Is this true?

by Mary Knight
(Alma, Arkansas)

My employer is stating some labor law which says she has to pay me hourly. My job is with a for-profit organization. I travel to clients during the day, location to location, based on how the families can schedule.


Currently I am paid a salary monthly here in Arkansas. I was asking for a raise, due to gas prices and her answer was: Yes we can talk about the raise...but, you are about to have to go to an hourly amount with no salary, due to the Department of Labor laws.

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Hourly Pay is in Your Future.....
by: Best Business Payroll

Without knowing a bit more about your situation, we can only speculate about why you are being transitioned from a monthly salary to being paid hourly.

Your boss probably does not want to make this change; the Department of Labor is most likely forcing her to. In all likelihood, they did an audit of your company's payroll and sent a notice that your pay must be changed.

This is actually done as a protection to you, the worker, to ensure that you are not working for hours for which you are not being compensated. For example, in the past, managers of hotels worked as salaried employees, but often worked far more than 40 hours a week. As a salaried employee, overtime rules do not apply, and thus some of those hotel managers were working for below minimum wage. Switching to being paid hourly ensures that if you go over 40 hours a week, you will qualify for time and a half, and thus be compensated fairly for your work.

Switching from a monthly salary to being paid hourly will entail more record-keeping by both you and your employer. Now you will need to record the specific times you start and stop your job--in your case, you will need to work out with your boss what constitutes time "on" the job and time not working. Your boss probably does not want to increase her paperwork any more than you do, which leads us to believe she is being told to make this change.

As a side note, the IRS allows 55.5 cents per mile for business miles driven for 2012. If you are not compensated by your boss for mileage, you may claim it on your tax return. Perhaps as you negotiate that potential raise, you might find it to your benefit to see if having your mileage compensated instead might come out better in the long run.

Best of luck as you make this transition.

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