Can salaried employees furlough?
The FLSA permits exempt employees to take voluntary time off without pay. While employee furloughs are in many ways more beneficial to employers and employees, employers must be very careful to structure the furlough of exempt employees so that they do not endanger the exempt status of those employees.
When does an employer have to pay an exempt employee?
An employer must pay an exempt employee the full predetermined salary amount “free and clear” for any week in which the employee performs any work without regard to the number of days or hours worked. However, there is no requirement that the predetermined salary be paid if the employee performs no work for an entire workweek.
How many hours are non exempt employees entitled to?
Non-exempt employees are entitled to overtime under the Act. The FLSA mandates that employers pay at least the minimum wage (the higher wage between the state and the federal minimum) for up to 40 hours per week.
What makes an exempt employee of the Department of Labor?
A highly compensated employee (HCE) is considered exempt by the Department of Labor if: “the employee has a total annual compensation of $107,432, including at least $684 a week (effective January 1, 2020), paid on a salary or fee basis; The employee’s primary duty includes performing office or non-manual work; and
How much does an exempt executive make per week?
FLSA section 13 (a) (1) requires payment of at least $684* per week on a “salary” basis for those employed as exempt executive, administrative, or professional employees. See Fact Sheet #17G.
An employer must pay an exempt employee the full predetermined salary amount “free and clear” for any week in which the employee performs any work without regard to the number of days or hours worked. However, there is no requirement that the predetermined salary be paid if the employee performs no work for an entire workweek.
What happens if you cut an exempt employee’s salary?
But employers can land themselves in legal trouble if they cut an exempt employee’s salary without adhering to federal and state wage and hour laws. “Given the current economic downturn, many employers are considering modifications to employee pay to help reduce costs,” said Andrew Murphy, an attorney with Faegre Drinker in Minneapolis.
When can you legally dock an exempt employee’s pay?
Because exempt employees are paid for the job and not by the hour, if your employee is still working a full 40 hours and you’re deducting a half day’s pay each week when they go to their medical appointment, you are legally right, but morally and ethically wrong.
A highly compensated employee (HCE) is considered exempt by the Department of Labor if: “the employee has a total annual compensation of $107,432, including at least $684 a week (effective January 1, 2020), paid on a salary or fee basis; The employee’s primary duty includes performing office or non-manual work; and