[OldHand2018]

I don't disagree with you at all. If you regularly exceed 40 hours with exempt employees (especially developers) the compensation structure will have to reflect that or you will have retention problems.

That cost is far more transparent when dealing with hourly contractors, and maybe the employer prefers this! But, you know, theory of the firm etc tells us that in the long run you are usually better off with exempt employees even if they are frequently working less than the 40 hours you expect from them.