Re: Salaried Exempt Employees vs. Actual Hours
From: Steve House (sjhouse.remove.this_at_to.send.hotmail.com)
Date: 06/10/04
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Date: Thu, 10 Jun 2004 10:17:42 -0400
Just offering some ideas to ponder ...
IMO, you should consider the costs based on total hours rather than a
cut-off at 40 even for salaried exempt employees. Think about it a moment.
Joe might not get paid overtime or paid extra for hours in excess of 40, but
if he has to devote a Saturday to bring a task in on-time isn't he going to
eventually take some "comp" time or discretionary time off? People don't
work for free, even salaried exempt people. It may not show up in a cheque
but somehow, someway, he is going to be compensated for that time and that
cost is a very real, albeit often hidden, cost to the firm of completing the
project and IMO should be reflected in the budget. If your budget will
reflect he's getting paid for 8 hours when he leaves at noon on Friday, then
showing that task as costing more than it actually does compensates for the
tasks that show costing less than they actually do in the overall big
picture. The usual case, however, is that you'll see accurate budgeted
costs for tasks completed within the regular work week but inaccurate costs
for tasks performed with hours in excess of the regular work week.
Some suggest leaving the OT rate for salaried exempt at zero but I disagree
and think it should be set instead to equal the standard rate. Putting it
at zero means that if you scheduled all of the hours for a project being
done by exempt workers to be worked outside of normal working hours, you'd
get the project done for free, which is obviously ridiculous. Its real cost
is going to be the same regardless of whether it's worked on 8-5 or evening
and weekends.
-- Steve House [MVP] MS Project Trainer/Consultant Visit http://www.mvps.org/project/faqs.htm for the FAQs "James Ferrise" <anonymous@discussions.microsoft.com> wrote in message news:fa5b01c43e72$53718940$a601280a@phx.gbl... > We want to capture resources' Actual Hours on their > projects. However, in providing cost and budget > information, we want to limit the calculation of such to > be the resources' rate * a maximum of 40 hours per week. > This is because many of the resources are salaried exempt > employees. So, even though we want to capture the Actual > Hours they worked, we do not want to calculate the impact > to the total project cost beyond the limits of their > salary. What are our options in this situation?
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