So Ive been at my job now for about a year now with a salary plus commission pay classification. I dont receive any overtime compensation but am paid a flat salary rate each pay period. I just recently just realized I have not been paid the correct base salary basis for an exempt salary position this entire time. From my understanding this is against Fair job act and I should either be paid for all my o.t. or the difference between the salary amounts. How should I go about this issue?

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What do you mean you are not paid the correct base salary? Did they say they are going to pay you $X amount but your paychecks are not reflecting that? What is the “correct salary” supposed to be versus what they’re actually paying you? What was the amount on your initial offer?

As far as OT goes, no, you are not owed any OT. Salaried employees are not eligible for OT. That’s the one downside of being a salaried employee instead of an hourly one.

I'd start by confirming you are right and then discuss it with your immediate supervisor. This is exactly the sort of thing your supervisor should help you with. They should either take this to HR/Payroll for you or point you in the direction of the person you need to talk to. HR/Payroll should do an audit to confirm what you are saying and either fix it or inform you why you are incorrect.

If you don't get any satisfaction, then you will need to decide if it is worth it to sue or not.

1) Review your written offer from the company when you accepted the role to make sure you know the base they intended to pay you.

2) Are you sure you’re looking at gross pay and not net? Taxes, insurance, and other deductions will reduce your gross pay significantly.

3) Sounds silly… but… are you paid monthly, every other week, or twice per month? It’s not a trick question - most places pay every other week, with 26 pay periods during the year. If you’re paid twice per month (usually 1st and 15th), there will be 24 pay periods. Is it possible you are calculating this on the incorrect pay intervals?

4) If you’re confident that you are calculating this all accurately, then it’s an HR issue. You can address with your manager (give them a heads up that you’re going to contact HR as a courtesy since they’ll likely be brought into the convo anyway), but you should have the lead role in correcting salary errors. Attach your offer letter and most recent paystub (a year-end paystub will make it easier to see the issue) for their convenience to support your position.

Just remember: they’re going to apply taxes and whatever percentage based deductions you have from the pay they owe you.

Also, don’t get legal on them out of the gate or mention the fair job act. And don’t pretend to be an attorney. If they don’t correct this for you, and you have everything you need in writing (including correspondence about the issue and their refusal to give you back pay), contact an attorney and let them write a letter on your behalf. HR knows the rules/laws better than us most of the time, and being confrontational on your own will only hinder your cause. Just be patient and let it play out in a reasonable way.

Best of luck.

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