EXEMPT AND EXHAUSTED

Dear Everybody's Uncle,
 
Help!
 
Three weeks ago I started working as an accountant for one of the largest financial companies in the world. I am a widow in my fifties and have always worked as a non-exempt hourly employee in clerical positions. I was thrilled to be offered an exempt position as a staff accountant. My yearly salary is much more than at my previous job but it's about average for a junior accountant.  My problem is that my new boss expects me to work at least 50 hours a week! I've been working close to 12 hours a day without a lunch break.  I knew I would have to work longer hours occasionally but this is ridiculous!  Besides only making $12.00 an hour, I'm exhausted. The job I applied for was a non-exempt hourly clerical position but the company changed it to an exempt position when they offered it to me. I need to work but I don't know how long I can keep this up. I have no time for anything else.  After my husband died it took a long time to build a life for myself again and I don't want to give that up. How do you suggest I handle this situation?
 
I have another question. When I was unemployed (almost a year), I used my credit cards more than I should have.  I am uncomfortable with this debt.  What do you think about using some of my 401K or IRA to pay this off?  I know I will have to pay extra taxes and penalties but I'll sleep better.  What are your thoughts?
 
I will appreciate any advice you can give me.
 
Sincerely,
 
Mrs. M
 
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[Exempt positions do not get overtime pay. Non-exempt employees work "by the clock" and get over time pay]

Dear Mrs. M,

[Uncleism: Employers want the most work for the least pay. Employees want the most pay for the least work.]

When the company changed your job slot from Non-exempt to Exempt, you should have had the above Uncleism in mind. They did that for a reason, and now you know the reason.

You must make a decision. Do want the money and the long hours at least until you reach certain financial goals, or will job stress take too high a toll?

If the stress will have serious net impact, get out as soon as possible and let the financial chips fall where they may.

Otherwise, consider playing the game. You already have several weeks under your belt. Can you endure long enough to be eligible for unemployment? If so, after that period you will know, certainly, if the company "played" you.

[Uncleism: If you hit me, I get to hit you back.]

Until you become eligible for unemployment benefits, render service with a smile and a pleasant attitude toward all coworkers. Okay to occasionally mention your discontent, but constant whining will be counterproductive - keep a low profile.
When unemployment eligibility is certain, work 40 hours (and an occasional hour OT) and leave. This will put the company in a position where they will have to state an "expectation" of longer hours without a "contract" for longer hours. They may want to negotiate with you, in which case you will win something, or they may fire you "without cause" in which case you will be able to collect unemployment.  

They could fight you and debate "reasonable expectations," but if your actual hourly rate looks anemic, the word "reasonable" will be up for discussion. They might not want to define "reasonable" because all other Exempt Employees will be armed with a definition.

Health first, finances second - attorney guidance could open additional avenues.

Do not take premature IRA withdrawals and pay penalties unless absolutely necessary.

You mentioned a 401K. If such a plan has not been converted to an IRA, you may be able to borrow funds without a penalty. You will have to pay back the loan with interest, but you are paying interest to yourself - beats paying credit card companies.
I don't usually recommend using an equity line to cover credit card debt, but the mechanism can serve you well if you "burn" those credit cards.

If your credit is intact, take advantage of teaser rates that many companies offer. Call and request a lower interest rate. Move debt to the card with the lowest rate.

I sense that you are not desperate, just nervous. You are an accountant; use your skills; run the numbers. You can offset your nervousness with the psychological reward of playing the system and perhaps winning.

Attorney guidance is always recommended when "playing the game."

Fun to beat the system,
Everybody's Uncle