I live in California and have been with my company for 10 years. I am classified as a salary exempt exempt employee and last week was told that we no longer have designated sick and vacation hours but now all our hours are lumped together as PTO.

The new requirement is that I punch the time clock and any weeks I work less than 40 hours I will have my PTO hours deducted. Here is where I am confused... I asked our "HR" manager (aka the owner's wife) if I work more than 40 hours do I get paid overtime or do I bank those additional hours? - answer = "NO". So if they are only paying me for the hours I clock and I take calls outside those clocked hours then I am not getting paid for them. Is this correct?

Thank you :)

Being exempt means you do not get over time. However, we would need to know more about your duties and the company to say much more. Also, why you did not work a full 40 hours is an important test to see if you are treated fairly.

I don't see how you can be called exempt anymore. You sound hourly to me!

I would go into the office and as nicely as possible get this spelled out in writing. They may not be following the law. They can't (as far as I know) let you work <40 hours one week and 40> another week to make up 'regular' hours.

Come back and tell us exactly what you are told in writing. I for one am not going to refresh my knowledge of the law until you do.

Why anyone would agree to work OT for free is beyond me.