Paying for holiday work can endanger exempt status — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

Paying for holiday work can endanger exempt status

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Q. Our company policy says employees who work on holidays are paid time-and-a-half. If an exempt employee works on a holiday, can I pay him time-and-a-half? R.E., Iowa

A.You may pay exempt employees additional compensation for hours worked beyond their standard workweek without affecting the employees' exempt status under the federal Fair Labor Standards Act. So, you can pay more for holiday work. The extra pay doesn't have to be time-and-a-half. It can be straight time, half time or a flat sum.

Keep in mind, however, that in borderline cases the U.S. Labor Department may view extra compensation as a factor in deciding whether a worker is truly exempt. Paying the worker exactly as you do a nonexempt employee, on an hour-for-hour basis, weighs against any exempt status.

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