Human Resource Blog

Unpaid overtime and docking pay for salary employee

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If a salaried employee works M-F from 8-5 as well as on Sat. from 8-12, is he entitled to overtime pay? Also, is it legal for an employer to dock an employee’s salary due to tardiness or not meeting a quota for the company?

Some salaried employees are entitled to overtime when working more than 40 hours per week. It depends upon the employees primary duties. Here is a link to the federal guidelines on what makes an employee exempt from the federal overtime and minimum wage laws: http://www.dol.gov/elaws/overtime.htm

If this employee was an outside sales person, or a manager who independently hired and fired at least 3 employees, he or she would probably not be entitled to overtime in these circumstances.

Generally an employer cannot dock a salaried exempt employees pay when he or she works at least 1 hour during the day. Doing so suggests that the employee is not salaried exampt, and is entitled to overtime when he works more than 40 hours per week. The US Department of Labor Wage and Hour division would make the final determination in this case.

Docking the employees pay due to not meeting a quota is a different issue. This is a matter of state law in most cases. Some states (California) do not permit any such deductions from an employees salary. Others would permit it, but only if the employee had agreed in writing, in advance, to such a disciplinary procedure. For a more specific answer, please post a question mentioning your state.