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re: Hourly vs. Salary - IT Developer
Posted on 9/2/22 at 12:21 pm to WhiskeyThrottle
Posted on 9/2/22 at 12:21 pm to WhiskeyThrottle
A lot of multi-state employers do hourly compensation to avoid class action lawsuits as they pertain to overtime.
I believe I am aware of such lawsuits in California and Texas.
Essentially, a salary employee is required to work 50-60 hours (quotas and deadlines) and doesn't feel the salary position compensates properly. So a large enough percentage of the workforce lawyer up and file suit.
I was with Lehman Brothers and they switched us from salary to hourly for that reason. I've seen several other fortune 100 employers do the same over the past 15 years. It mitigates risk.
I believe I am aware of such lawsuits in California and Texas.
Essentially, a salary employee is required to work 50-60 hours (quotas and deadlines) and doesn't feel the salary position compensates properly. So a large enough percentage of the workforce lawyer up and file suit.
I was with Lehman Brothers and they switched us from salary to hourly for that reason. I've seen several other fortune 100 employers do the same over the past 15 years. It mitigates risk.
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