Can an employer dock an exempt employee pay?
Can an employer dock an exempt employee pay?
The short answer is “yes.” The rule of thumb under the Fair Labor Standards Act (“FLSA”) is that the regulations do not permit an employer to dock pay from a salaried, exempt employee. Doing so, can cause an entire class of employees to suddenly go from exempt to non-exempt and thus, entitled to overtime.
How are salaried exempt employees paid?
Additionally, all exempt employees are paid on a “salary basis,” meaning they receive a guaranteed minimum salary from their employer each week regardless of the number of hours they work, as long as they work some hours. This doesn’t mean that the employee’s entire salary must be guaranteed.
Can you deduct holiday pay from exempt employee?
The FLSA regulations do not specifically allow deductions for holidays. Therefore, the employer should not make deductions from an exempt employee’s pay for holidays, or it would risk losing the employee’s exempt status.
Can pay be deducted from salary?
When an employer reduces an employee’s pay, it is called pay docking. Docking the pay of exempt employees is only permissible in certain circumstances. Employees who are exempt from the law are not entitled to overtime or the federal minimum wage, but employers may not make improper pay deductions from their salary.
What does it mean to be a salaried exempt employee?
An exempt employee is an employee who does not receive overtime pay or qualify for minimum wage. Exempt employees are paid a salary rather than by the hour, and their work is executive or professional in nature.
What is an exempt status employee?
The term “exempt employee” refers to a category of employees set out in the Fair Labor Standards Act (FLSA). Exempt employees do not receive overtime pay, nor do they qualify for minimum wage. Exempt employees stand in contrast to nonexempt employees.
What is the minimum salary for exempt?
The minimum salary requirement for exempt employees according to the Fair Labor Standards Act ( FLSA) is $23,600 per year or $455 per week. However, the exempt salary minimum alone does not classify an employee as exempt. Salary level is one of three tests used to determine employee exempt status.
What is the minimum hours for an exempt employee?
Most employers do establish an expectation of a minimum number of hours that an exempt employee must work. It may be 35 hours, it may be 45 hours per week, or it may be more. Many employers also establish minimum expectations about the times the exempt employee will work.
What are exempt employees?
An exempt employee is an individual who is exempt from any overtime pay or minimum wage requirements.
What is exempt employment?
WHAT IS AN ‘Exempt Employee’. Exempt employee is a term that refers to a category of employees set out in the Fair Labor Standards Act. They do not receive overtime pay, nor do they qualify for the minimum wage.
