Consulting/contracting as an exempt

[offTopic]

Being relatively new to the consulting racket, I have a question WRT an overseas engagement that required a substantial amount of overtime.

Let's say you're an exempt employee for a consulting firm, and you are on an open-ended contract with a customer. They have an overseas facility, and you have to travel there to help with a software installation.

When it becomes apparent there will be a lot of work required, the project manager shows up at a status meeting and informs the contractors (multiple companies) to keep track of their hours as they've gotten overtime approval from each company. You end up putting in an additional 40 hours over the 2.5 weeks.

I didn't want to do a poll because I was interested in hearing different viewpoints, but after you get back, in terms of compensation, would you expect:

- Some flat bonus amount
- 40 hrs pay, hourly rate generated by your pro-rated salary
- Nothing, you're exempt
- other?

[By-Tor]

By straight definitions, this becomes a very grey area. You are an exempt employee of the consulting firm, but not with regards to your customer. To your customer, you are a contractor at hourly rates.

I have been in this type of position before and was always paid (and expected) time and a half.

If I need to do something for the consulting firm above and beyond, ie, go to the office to fill out forms or something, this is where I was on my own dime and did not expect pay.

In this situation, I expect 40 hours at time and a half.



edit: plus expenses.

[By-Tor]

Also, the term 'exempt' gets abused over and over in the computer industry. Here is how the Department of Labor has defined it:

----------------------

Computer Employee Exemption

To qualify for the computer employee exemption, the following tests must be met:

* The employee must be compensated either on a salary or fee basis (as defined in the regulations) at a rate not less than $455 per week or, if compensated on an hourly basis, at a rate not less than $27.63 an hour;
* The employee must be employed as a computer systems analyst, computer programmer, software engineer or other similarly skilled worker in the computer field performing the duties described below;
* The employee’s primary duty must consist of:

1) The application of systems analysis techniques and procedures, including consulting with users, to determine hardware, software or system functional specifications;

2) The design, development, documentation, analysis, creation, testing or modification of computer systems or programs, including prototypes, based on and related to user or system design specifications;

3) The design, documentation, testing, creation or modification of computer programs related to machine operating systems; or

4) A combination of the aforementioned duties, the performance of which requires the same level of skills.


----------------------


These are engineering type roles and very few support roles would ever fall into exempt status if it came to challenge.

[Patrick del Poker Grande]

Cliffs notes: Don't expect overtime pay and probably don't ask for it (unless that's the culture in your company).

This is my working arrangement - I work for a consulting company and am an exempt employee. Actually, my wife is, too (for another company). My situation is I don't get overtime. My wife gets straight time. I don't expect to get any sort of overtime pay for work over 40 hours, since that's my arrangement. However, when it's known ahead of time that there'll probably be a some overtime, we (my company) write it into the contract that significant or continuous overtime gets billed to the customer at time and a half. I don't get any of that, but I have been told "we'll see if we can get you some of that" by our contracts guy. I say "alright (whatever)" and I don't expect to get any of it and I don't ask for it, as my job's not really a "put in your 40 and go home" kind of job. In the end, it boils down to me not getting any of the extra cash directly, but it tends to make a good impression when it's time for reviews or a bonus.

Now traveling is different - not for overtime, but all expenses plus some sort of per diem. If you're a single guy renting a place, this could be a pretty sweet deal to go on-site somewhere for an extended period of time - free rent (usually somewhere pretty nice) and per diem on top of your salary makes it pretty nice.

My wife gets straight time for her overtime, but that's the arrangement she has with her company.

Of course, this is all engineering, so it's probably different for your field (assuming it's not engineering).

[El Diablo]

oT,

Generally a consulting firm will have some policy for salaried employees putting in >x hours at a customer site.

In a situation like you describe, I've seen the compensation range from a "great job!" to a pro-rated based on salary bonus for all extra hours worked.

Without any specific policy in place, I wouldn't expect much of anything here for working 40 extra hours over 2.5 weeks.

[By-Tor]

[ QUOTE ]
Without any specific policy in place, I wouldn't expect much of anything here for working 40 extra hours over 2.5 weeks.

[/ QUOTE ]

I'm very surprised to hear you say this. This has been a very hot topic in CA over the past 5-10 years with major corporations such as BofA, Pacbell, Starbucks and others all settling lawsuits for multi-millions.


OT, I suggest you run yourself through the Exempt/Non-Exempt wizard at HRCalifornia.


I really doubt this will end up being an issue and once your hours are reported, you are going to get a fat check cut and be happily surprised.

[offTopic]

All:

Thanks for the feedback. I have been an exempt employee for various companies for the entirety of my so-called "professional" career. Were I an employee of the customer, I would not have expected any additional compensation (and indeed, the regular employees who went on the trip did not receive any) so the PM telling us that they'd gotten approval from our respective companies for OT was an, "Oh. Cool." kind of thing.

PdPG:
[ QUOTE ]
Don't expect overtime pay and probably don't ask for it (unless that's the culture in your company).

[/ QUOTE ]

This was an extraordinary circumstance, so I don't know what culture exists. Also, I may be nitpicking, but I wouldn't have asked about it had I not been told about it in the first place.

ED:
[ QUOTE ]
Without any specific policy in place, I wouldn't expect much of anything here for working 40 extra hours over 2.5 weeks.


[/ QUOTE ]

In your experience, do the extra hours vs. total hours factor in here? For the sake of discussion, what if it was 30 extra hours over 1 week?

BT:
[ QUOTE ]
I really doubt this will end up being an issue and once your hours are reported, you are going to get a fat check cut and be happily surprised.

[/ QUOTE ]

I am 99% sure this will not be the case, as I'm still trying to get my expenses reimbursed.

[El Diablo]

oT,

"In your experience, do the extra hours vs. total hours factor in here? For the sake of discussion, what if it was 30 extra hours over 1 week?"

Yes, that matters. BTW, I'm assuming that your "extra" hours were based on a 40-hour normal week. So, putting in 50-55 hours in a week is not something I'd expect any extra for as a salaried employee. That just goes with the territory. Putting 70 hours in when a normal workweek is 40-50 hours is a different story and I'd expect some sort of bonus or time off or whatever.

[El Diablo]

BT,

"I'm very surprised to hear you say this."

Most professional salaried jobs involve working more than 40-hour weeks. That holds for whether they are office jobs with a company or service jobs (accountants, lawyers, consultants) where you are doing work that is billed out to clients. Working 50-60 hours is very standard at a lot of places.

[By-Tor]

The consulting company is certainly going to bill the customer for the additional hours.

How is this just a windfall for the consulting company?

This is why it is such a grey area.