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Jan14

Overtime for Salaried Employee

We have a warehouse manager who gets paid a salary. He is now taking on more duties that are not under warehouse manager. He works Monday-Friday. If he worked Saturday and Sunday for a non-warehouse manager duty does he get paid under salary or overtime?

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 either non-exempt or exempt.

Non-exempt employees must be paid for all hours worked and are subject to overtime and minimum wage requirements prescribed by the FLSA. Conversely, exempt employees receive a fixed predetermined salary and are excluded from overtime pay provisions.

Salary and hourly paid are compensation terms. Though uncommon, a non-exempt employee can be paid a salary each workweek.

Let’s assume the warehouse manager is exempt.
An employee can only have one FLSA classification. The classification is based on the employee’s entire job. Meaning, all of his work duties must be considered in determining his classification, even his non-standard duties performed on the weekends.

If it’s determined that the employee does enough non-exempt duties to change the classification then the classification is changed for the employee’s job in its entirety. Thus, he would be entitled to overtime for any hours worked over 40 in a given workweek.

It’s more likely that the employee’s additional job duties on the weekend are only a small portion of his job and he still qualifies for exempt status. If he is still truly exempt, then there is no requirement to pay him overtime or even any additional wages. Of course, having an employee work seven days a week or take on supplementary work without additional compensation is not good business practice.

The salary basis requirement under the FLSA states that an employee must be paid a predetermined salary each workweek without regard to quantity or quality of work performed to qualify for exempt status. Thus, exempt employees by the nature of their work are not required to receive additional compensation for time worked beyond their regular schedule. However, additional compensation is permitted to reward an employee for additional work without jeopardizing the employee’s exempt status. The additional compensation may be paid on any basis i.e. flat sum, bonus payment, straight-time hourly amount, time and one-half or any other basis.

Though additional compensation can be paid at an hourly rate, it’s often advised not to do so in an effort to limit the risk of a FLSA violation, specifically the employee claiming misclassification. Thus, it’s more common to pay an exempt employee a flat sum or bonus payment for their additional work.

This entry was posted on Thursday, January 14th, 2016 at 2:14 pm and is filed under
Compensation, Labor Laws.
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