Back Pay Owed

Once upon a time at a workplace, Frank came to a meeting waving sheet of paper. Feeling super confident. He had been prepped. He also did additional research himself. Frank had proof!

At this meeting was CEO, HR, and Frank’s manager. Frank was owed a lot of back pay and wanted it immediately. Plus, the new HRIS system, which was still being built, reflected a salary amount over what he was getting paid. Finally, he was asking for the overtime owed to him as an exempt employee.

The meeting began with the subject of exempt versus non-exempt. There were multiple memos of this topic on Frank’s file. Frank’s mentor was an incompetent fraudster on an array of topics. Could not grasp the concept of a Google search, brings up accurate and inaccurate information that is out on the internet. The mentor’s cognitive abilities were interesting; he thought if he grabbed pieces of information that equated to knowledge on a subject matter. Details, regulations, and laws supporting the subject weren’t important.

So, Frank passed a screenshot of Google search ‘salary employees don’t have to work over 40 hours a week’ which brought up an overview of FLSA classifications and Reddit comment. HR reviewed that his role was classified under FLSA as exempt salaried. It stated clearly that federal law does not limit the number of hours an employer can require them to work. Salary is fixed. Another screenshot was provided that supported his belief that he is owed overtime for all hours worked over 40 in a week. It reflected non-exempt classification, and yes, those workers are paid overtime.

Frank passed around his hand calculated amount owed for overtime. HR asked him what part of the FLSA classification for his role he needed clarification on again. Including his mentor was not a good resource, the screenshots presented supported that this was no error. He was salary. He was exempt from overtime. He was required to work a minimum of 55 hours per week, which was in the handbook. Sometime over and sometimes under that amount. His pay remains the same. Frank responded that he was going to call the Department of Labor. HR support that idea.

Frank then passed around print out of a Total Compensation statement he found on the new HRIS system, it reflected a higher salary amount and additional benefits he preferred to cash out and take the money. HR explained that the company was not using that module. Those numbers weren’t real and the company didn’t offer those benefits. Frank argued that because he was able to see this information the company was in the wrong and he was owed this money.

HR who had conducted the training, asked Frank if it was covered during that session. Frank stated he didn’t recall, but that doesn’t mean the company should withhold his monies owed. HR explained that factious numbers in a module in software that the company was not using did not and would not result in Frank getting those funds.

Frank passed out another calculation document, sat back arrogantly crossing his arms and said, “you can’t deny those numbers.’ Frank’s manager didn’t bother even looking at it, he had heard Frank rehearsing for this meeting. The CEO stared at the sheet. HR stared at the paper, puzzled and caught Frank’s manager trying not to laugh.

The CEO asked Frank what these calculations were. Frank explained that his annual review was late and he was owed retro pay because of it. HR spoke after several minutes. Frank, are you referring to an annual review; a performance review that is completed on an annual basis with your manager? Yes, I’m owed big money as it has been late the last five years.

HR continued, explaining that ‘annual’, like ‘salary’ were generalized words, not literally. An annual review is a review done once per year. It’s not literal that every May 5^th, you have your review. Further, explaining that a review is not required by any regulation, it’s a company wanting to see your progress and here we also do the cost-of-living increase. A wage or salary increase is also not required by law.

Since the word salary was mentioned; that is a generalized word used to express an exempt salary on a year basis. Just like hourly wage is used for non-exempt workers. Non-exempt workers are paid by the hour and because they work overtime it makes sense to use that verbiage. Does all that make sense?

Frank argued that the company was stealing from him on his salary too. According to his math, he wasn’t paid the right amount. He stated that when he gets a raise, the company is required to retro pay the new salary to match its new ‘salary’ amount. HR explain the payroll math, which is heavily regulated for compliance on how the bi-weekly amount is calculated. Then, explain, going back to the generalized words. An exempt salary will still be stated as an annual amount. When an employee receives an increase, a new bi-weekly and annual amount is given on a required form. It’s why increases aren’t given until the next bi-weekly payroll. Payroll processes forward.

The meeting ended. Frank asked if HR was going to send him notes for today’s meeting and if they could investigate his concerns. The CEO and Frank’s manager expressed colorful words shaking their heads.

Sequel: Frank moved on to another company. Best of luck!