The Fair Labor Standards Act
(FLSA) is a federal law which requires that most employees in the United States
be paid at least the federal minimum wage for all hours worked and overtime pay
at time and one-half the regular rate of pay for all hours worked over 40 hours
in a workweek.
However,
Section 13(a)(1) of the FLSA provides an exemption from both minimum wage and
overtime pay for employees employed as bona fide executive, administrative,
professional, and outside sales employees. Section 13(a)(1) and Section
13(a)(17) also exempt certain computer employees. To qualify for
exemption, employees generally must meet certain tests regarding their job
duties and be paid on a salary basis at not less than $455 per week. Job titles
do not determine exempt status. In order for an exemption to apply, an
employee’s specific job duties and salary must meet all the requirements of the
Department’s regulations.
To qualify for exemption,
employees generally must be paid at not less than $455 per week on a salary
basis. These salary requirements do not apply to outside sales employees,
teachers, and employees practicing law or medicine. Exempt computer employees
may be paid at least $455 on a salary or on an hourly basis at a rate not less
than $27.63 an hour.
Being paid on a “salary basis” means an employee regularly receives a
predetermined amount of compensation each pay period on a weekly, or less
frequent, basis. The predetermined amount cannot be reduced because of variations
in the quality or quantity of the employee’s work. Subject to exceptions listed
below, 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. Exempt employees do not need to be paid for any workweek in which they
perform no work. If the employer makes deductions from an employee’s
predetermined salary, i.e., because of the operating requirements of the
business, that employee is not paid on a “salary basis.” If the employee is
ready, willing and able to work, deductions may not be made for time when work
is not available.
Deductions from pay are
permissible when an exempt employee: is absent from work for one or more full
days for personal reasons other than sickness or disability; for absences of
one or more full days due to sickness or disability if the deduction is made in
accordance with a bona fide plan, policy or practice of providing compensation
for salary lost due to illness; to offset amounts employees receive as jury or
witness fees, or for military pay; or for unpaid disciplinary suspensions of
one or more full days imposed in good faith for workplace conduct rule
infractions (see Company Policy on penalties for workplace conduct rule
infractions). Also, an employer is not required to pay the full salary in the
initial or terminal week of employment; for penalties imposed in good faith for
infractions of safety rules of major significance, or for weeks in which an
exempt employee takes unpaid leave under the Family and Medical Leave Act. In
these circumstances, either partial day or full day deductions may be made.
It is our policy to comply
with the salary basis requirements of the FLSA. Therefore, we prohibit all
company managers from making any improper deductions from the salaries of
exempt employees. We want employees to be aware of this policy and that the
company does not allow deductions that violate the FLSA.
If you believe that an improper
deduction has been made to your salary, you should immediately report this
information to your direct supervisor, or to
_______________________________________________.
Reports of improper deductions will
be promptly investigated. If it is determined that an improper deduction has
occurred, you will be promptly reimbursed for any improper deduction made.
|
U.S. Department of Labor, Frances Perkins Building,
200 Constitution Avenue, NW, Washington, DC 20210 http://www.dol.gov/esa/regs/compliance/whd/fairpay/fairpayprintpage2.asp?REF=modelPolicy_PF.htm |