Exempt employees are not entitled to overtime

by on March 27, 2009 · 0 Comment POSTED IN: HR Info Center

Employers may dock pay of hourly workers but not salaried workers in FLSA regulations

Sometimes it’s hard to figure out how to classify an employee: exempt or non-exempt. After all, a fine line may separate an hourly administrator from a salaried manager. It’s not always a snap decision.

Here’s a case that illustrates how a judge made that difficult determination. And it may help you classify your employees so that your business is in compliance with FLSA regulations.

The case

Several high-ranking county employees sued for overtime pay claiming that the work they performed was mostly administrative and manual.

They didn’t make executive decisions, they said. And while they did supervise others at times, they weren’t primarily responsible for training and managing other employees. The employer claimed that they were salaried exempt employees who weren’t entitled to overtime.

The decision

In weighing the evidence, the court noted that since, under the employer’s policy, there were no infractions or conditions under which these exempt employees’ pay could be docked, they should be considered salaried exempt employees under FLSA regulations.

The court went on to say that to be compensated on a salary (as opposed to an hourly) basis, an exempt employee must be paid a predetermined amount that isn’t subject to reduction because of variations in the quality and quantity of the work performed.

Cite: Ahern v. County of Nassau.

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