No holiday pay for exempt staff in first 90 days? — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

No holiday pay for exempt staff in first 90 days?

Get PDF file

by on
in Human Resources

Q. Our company has a 90-day probationary period that employees must complete before they’re eligible for holiday pay. We’ve always made salaried exempt employees meet this requirement, too. So if a holiday occurs during their first 90 days, we only pay them for the days worked that week. Is this legal? — V.T., Illinois

A. While your treatment of exempt employees might be legal, it will jeopardize their exempt status. Exempt employees must be paid a weekly salary. With limited exceptions, deductions from pay for anything less than a full week could cost you the exemption for that employee.

Your pay practice is not illegal. But if you face a legal claim, it will probably result in you having to treat the employees as nonexempt and pay overtime for all hours worked in excess of 40 in any given workweek.

Leave a Comment


Previous post:

Next post: