Exempt Employee

Feature of the Week

The recent bad weather can create problems for employers, particularly if the business had to shut down for a period of time due to flooding or electrical outage. One common issue involves payment of employees if businesses are forced to close. This week’s Feature is a white paper from HRN Performance Solutions on emergency closures and paying exempt and non-exempt employees.

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Cutting Exempt Pay to Recover Bonus Jeopardizes Status, Sixth Circuit Rules

A company plan to recover bonus “overpayments” from the salaries of exempt employees does not meet the salary basis test of the Fair Labor Standards Act, the Sixth Circuit rules, thus the employees were entitled to overtime payments.

The corporate plan in the case had specified that the company reserved the right to make deductions from exempt employee’s base salaries for bonus payments mad Read more

Purchasing Agents Qualify for Administrative Exemption Says DOL

Purchasing Agents who ensure that materials, equipment, and supplies are ordered and delivered and participate in the vendor selection process are performing duties that directly relate to the functional areas of purchasing and procurement, which fall under the exempt administrative employee criteria, according to an Read more

No Partial Day Deduction if State Leave Reason Different from FMLA

Exempt employees who are taking leave under a state’s Leave Act (such as the Hawaii Family Leave Law) for reasons not covered by the federal Family and Medical Leave Act must be paid for partial day absences caused by the leave, according to a recently released U.S. Wage and Hour Division opinion letter. Read more

Case Managers and Radiology Techs Are Not FLSA Exempt

Case managers employed by a service provider for individuals with disabilities do not qualify for the administrative exemption under the Fair Labor Standards Act, says the U.S. Wage and Hour Division. Read more

Bad Checks Deductible from Exempt Employee Bonuses Under FLSA

Deductions from bona fide bonus payments for bad checks or other cash shortages do not affect an employee’s exempt status, according to a recently released letter from the U.S. Dept. of Labor. Read more

Salary requirement for exempt employee met with combined U.S. and foreign currency, says federal Wage-Hour opinion letter.

The employees are foreign nationals temporarily working in the U.S. receiving compensation both in the currency from their home country and in dollars. The employees meet the other requirements for exempt executive, administrative, or professional employees, but the dollar amount of their pay falls below the minimum salary requirement of $455 per week. Read more

Account Manager for Software Company is Administrative Exempt Says Seventh Circuit

An account manager for a media software company who acted as a bridge between the software developers and the customers in helping to determine the customers’ needs, relaying those needs to the developers, assisting in the customization of the software, and finally helping the customers use the customized software met the definition of exempt administrative employee under the Fair Labor Standards Act, the Seventh Circuit rules, affirming the rejection of the account manager’s claim for unpaid overtime. Read more

Mortgage Loan Officers Non-Exempt Says First DOL “Interpretation” Letter

White Collar Worker Employees who perform the typical job duties of a mortgage loan officer do not qualify as bona fide exempt administrative employees under the Fair Labor Standards Act, the first U.S. Dept. of Labor Wage Hour Division “Interpretation” declares. Read more

Claims Adjusters Are OT Exempt, DC Circuit Rules

Auto damage adjusters for an insurance company meet the criteria of exempt administrative employees under the Fair Labor Standards Act and are thus exempt from overtime payments, rules the D.C. Circuit.
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