– Employers should properly distinguish between exempt and non-exempt roles when allocating salaries based on tasks and responsibilities.
– It is important for employers to comply with the Fair Labor Standards Act (FLSA) by ensuring minimum weekly payments and clear attendance policies for exempt roles.
– Salaried, non-exempt roles require careful handling to meet minimum wage requirements, track hours accurately, and understand overtime rules. – Salaried employees receive a fixed amount of money for a specific time period, which does not change based on the amount or quality of work performed.
– Exempt employees must receive their full salary for any week in which they perform any work, regardless of the number of days or hours worked.
– Employers may make deductions from exempt employee pay for partial-day absences, but must ensure that the employee still receives at least the minimum weekly salary required by Department of Labor regulations. 1. Employers can pay a salary to non-exempt employees under certain conditions.
2. Employers must be clear about the expected weekly hours and ensure the salary meets minimum wage requirements.
3. Non-exempt employees must keep accurate time records and be paid overtime for hours worked over 40 in a week.
4. If a salaried non-exempt employee’s salary covers all hours worked, the employer must communicate that clearly.
5. If a salaried non-exempt employee works overtime, they are only entitled to half-time pay for the overtime hours. – Non-exempt employees can have their days off flexed within the work week to avoid paying overtime after working 40 hours.
– Exempt employees are expected to continue working for the rest of the week after reaching 40 hours, without receiving overtime pay.
– In the private sector, there is no compensatory time, so non-exempt employees must be paid overtime as it’s earned.
– In the public sector, compensatory time is available, allowing employees to take time off instead of being paid overtime for hours worked over 40.
– Employers should fully understand the differences and requirements of paying a salary versus an hourly wage and keep accurate records to avoid legal issues.
https://www.rumberger.com/insights/a-salary-by-any-other-name-must-still-be-a-salary/
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