Compression Issues for New Wage and Hour Regulations Goes Both Ways

I just finished a salary analysis for one of my clients.  They stated they wanted the changes to be cost neutral. Supervisory employees typically work about 50 hours per week.  So we converted their salary to an hourly rate with 10 hours pf overtime built in so the employee would not make less money.  The example I used in a previous posting was an exempt employee currently making $40,000 a year and working an average of 50 hours per week. By converting this employee to hourly at $14 per hour and $21/hr for 10 hours of overtime a week, the earnings are pretty close.

In the other posting, I was concerned about this employee's pay when he took a day off during any given week. So I spoke to their payroll company to see if we could add an overtime pay code that would count paid time off as hours worked so the affected individuals would not be hurt financially if they took a day off. We found this is doable.  Cool - this might work. 

This option will eliminate any potential for compression issues with their managers.  This looked good to me - well at least until another layer of the onion was peeled.

Now for the problem. Using the above example, the $14 an hour is less than the hourly rate of many of the people he supervises.  

The dilemma - how do we accomplish a cost neutral change to the compensation and have subordinates make more than the supervisor? 

Still working the spreadsheets.  Getting a bit bleary eyed and my brain hurts.