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Nov14

Salaried Non-exempt Employee

We are in Texas and had a non-exempt salaried employee who had VERY poor attendance (he came in 6 out of 21 business days and claimed to work from home 3 more). We dismissed him, but he is filing for 9 days of pay (1 full week + we dismissed him on 4th day of 2nd week). Is there any case or federal law I can cite that says that salaried non-exempt are not required to be paid full weeks at a time, that we can in fact dock pay in this case for missing work (he was out of PTO)? Thanks!

Cite the FLSA. The federal Fair Labor Standards Act (FLSA) establishes minimum wage, overtime pay, recordkeeping, and youth employment standards affecting employees in the private sector and in Federal, State, and local governments.

Under the FLSA, employees are non-exempt or exempt. Hourly and salaried paid are compensation terms.

Non-exempt employees must be paid for all hours worked and are subject to overtime and minimum wage requirements prescribed by the FLSA. Non-exempt employees need not be paid for time not actually worked.

Conversely, exempt employees receive a fixed predetermined salary and are excluded from overtime pay provisions.

Non-exempt employees paid on a salary basis are still non-exempt employees and must be treated as such under the FLSA.

In these situations, often times employees don’t understand that even though they receive a salary they’re still classified as non-exempt. It’s a common misunderstanding that employees who receive a salary are automatically exempt under the FLSA. Thus, he’s probably thinking that he’s exempt and entitled to a full weeks salary. However, even an exempt employee is not entitled to his full salary during his terminal week of employment if the employee didn’t work the full week.

Try explaining to the employee that although he received a salary he’s classified as non-exempt and only entitled to compensation for time actually worked. Refer him to the FLSA if need be.

This entry was posted on Saturday, November 14th, 2015 at 7:38 pm and is filed under
Compensation, Labor Laws.
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