The practice of declaring an employee as 'exempt' for purposes of avoiding paying overtime is generally frowned on by the IRS as an attempt to get out from paying overtime pay and the taxes pertaining thereto. In more than one case they have looked at the situation and come down heavily on the employer. Relevant variables here (according to CPA types I talked to recently) are things like 1) where does your salary fall with respect to the organizational median? 2) how many people do you supervise? 3) what portion of your time is spent in supervisory and management activity vs. hands-on type labor? If you don't fall on the managerial/supervisory side of these questions, your employer is on thin ice.

> ---------- > From: BODKIN, JAY[SMTP:jay.bodkin@BELLSYGMA.COM] > Sent: Friday, June 12, 1998 10:43 AM > To: SAS-L@UGA.CC.UGA.EDU > Subject: Re: Why work overtime [Was Y2k thingy..] > > Good points, > > I thought that would stir a reaction, but I didn't want to get too > far off topic. Working overtime for free really depends on the > situation, and a few of hours here and there once a month is OK to > throw > in for good measure when the going gets tough, > > However, if people do a 5 or 6 hours a week free overtime by habit, or > if a project manager thinks he is entitled to it, I would say that is > BAD for our business. I hate it when a project has the time > underestimated by a wide margin, and then the project leader hopes > that > he can shovel the work onto a consultant and get the work done for > free > because that's supposed to be "good professional conduct". > > > Gary McQuown wrote: > > > > 1: It is good for our business, not just theirs. > > 2: "Normal practice" is what ever we agreed to. > > > > Workers are in the business of being compensated for their efforts, > just as > > companies are. Wages, OT and other forms of compensation should be > > negotiated prior to the time of hire and re negotiated over time as > > necessary. > > > > I have yet to meet a "normal person" or work at a "normal company" > under > > "normal conditions". > > > > Gary McQuown > > CDSI > > > >