Greetings! Many employers think that putting an employee on salary naturally removes the obligation of tracking hours. However, unless an employee is truly exempt from the Fair Labor Standards Act, an employer must still pay applicable overtime, ensure wages are at or above minimum wage and provide rest and meal breaks. What exempts an employee? An employee must be salaried at no less than $684/week and be a bona fide executive, administrative, professional or outside sales employee. Certain computer employees are also exempt. Remember, job titles alone do not determine an employee’s exempt status.
If you have questions about whether an employee is exempt, or how to properly salary non-exempt employees, please contact me. It is critical to ensure accurate classification to save costly penalties in the future.
Have a great weekend!