I work in an ambulatory clinic and have a LPN who just completed her courses and boards to be an RN. I am thinking on moving her from hourly to salary. What should I take into consideration?
First, make sure to look at your state overtime rules! In Alaska, even if someone is salary, they will have to be paid overtime if they work over 40 hours in a week. There are also specific rules regarding RNs working in a hospital setting (not applicable here). If you go for salary, you will still need to keep track of your employee’s hours for this reason.
Second, be aware of the Fair Labor Standards Act “exempt” vs “non exempt” definitions. Most jobs are regulated by the FLSA. Check out this website for FLSA specifics and definitions (attorney website, but explains it easily – feel free to check out the official DOL website as well for in depth details).
Lastly, you will need to make a decision about Paid Time Off (PTO) or vacation/sick time. Does your staff accrue this time off, or is it a set amount? You’ll need to figure out how this will affect your new salaried position (if that’s what you have decided). If accrued, you again will need to track time to determine how much time off to allocate to the employee.
In the end, I suggest the age old rule – KISS – Keep It Simple Sally 😉 Do what is best for you, the company, and the easiest to keep track of. Do not set a precedent that you can’t maintain in the future for other employees.