It can be unnerving when exempt employees, who are paid a set salary, are chronically late. An employee could be 15 minutes late each day for a week and receive the same paycheck as someone who works the whole day. Unless the employee is able to make up for the lost time at the end of the day by staying late, that’s just not fair.
Tag: exempt employees
Interpreting overtime exmptions can be tricky. While the April 2nd, 2018, Supreme Court ruling may only apply to a very small segment of workers and probably only affects a single wage and hour lawsuit currently, this departure from the longstanding approach at interpreting overtime exemption will likely have broader implications and affect more workers in the future.
With the exempt salary threshold saga finally behind us, the latest Bed Bath & Beyond wage and hour suit is a good reminder that following the FLSA’s exemption status requirements is just as important as ever.
Most of us think the words salaried and exempt are synonymous. They’re not quite, however. A non exempt employee can actually be salaried. So how does this work?
Well, first of all, salaried simply means paid a salary.
Non-exempt means that the employee qualifies for overtime wages.
So, technically, an employee could make a base salary with overtime wages added to it.
A common misconception regarding an employee’s exemption status, i.e. whether the employee is hourly or salaried, is that if they perform certain job duties, they must be considered exempt. This is not true. The FLSA states that in order to be considered exempt an employee has to meet all of the following tests:
Most companies offer sick leave to full-time employees since nearly 80% of full-timers get some sort of sick benefit. If your company doesn’t, there are a few reasons you might want to consider writing up a sick time policy for your salaried employees.
First, it makes it easier to deal with the legalities of exempt employee salary deductions. Second, the office is just healthier when sick people don’t come into the office and infect everybody else. It may seem counter intuitive, but paying an employee to stay home when they’re sick benefits your employees and your company a great deal.
Timesheets.com has a free tool for calculating time off accruals that you can use.
In general, employers cannot deduct pay from an exempt employee’s paycheck. The amount of money an exempt employee makes is not based on the number of hours she does or doesn’t work.
An exempt employee must receive the full salary for any workweek in which the employee performs any work, regardless of the number of days or hours worked. There are a few exceptions to this rule, however.
The Fair Labor Standards Act governs most types of jobs in the US. There are some types of jobs, however, in some industries that are not covered by the FLSA either because they are governed by some other labor law or for other reasons (these are the jobs listed in list 1). Additionally, there are some jobs that are covered but are exempt from overtime rules (these are the jobs in list 2).