Are you sure you know whether your employees are considered exempt or nonexempt? It's important to classify workers correctly because their status determines their eligibility to receive overtime pay. Even if you think you know the difference between exempt and nonexempt status, there are some fine points of which you may be unaware.
In 2018, the DOL responded to a query regarding whether a "reasonable relationship" exists between a professional employee's guaranteed weekly salary amount and the amount actually earned. The Fair Labor Standards Act's "reasonable relationship" provision enables an employer to calculate "an exempt employee's earnings on an hourly, daily, or shift basis, without losing the exemption or violating the salary basis requirement."
Newsletter articles are posted every 2 weeks.
If you would like to have our e-newsletter delivered directly to your inbox, please sign up. Your information is confidential; you can unsubscribe at any time. Subscribe.