Company pays engineers straight time for overtime - is that illegal? 06-15-2005

The company I represent provides primarily engineers to an aerospace manufacturer on a contract basis. Our contract engineers are paid hourly and straight pay for overtime. Isn't there a problem with paying the 'exempt' contract engineers hourly but not paying time/half for overtime?

Rita Risser replies:

It is not a problem if they truly are exempt. Exempt employees are not required to be paid by salary, and hourly exempt workers are not entitled to premium pay.

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