Fee-Basis pay to maintain overtime exemption — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

Fee-Basis pay to maintain overtime exemption

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Q. Are there any alternatives to paying employees on a salary basis and having them remain exempt from the overtime provisions of the Fair Labor Standards Act?

Employees who are exempt under the professional, administrative or computer professional exemption may be paid on a fee basis and maintain their exemption.

A fee basis is pay of a set amount for a single task or job. However, to qualify for the exemption, you must pay the employee strictly on a fee basis. If the employee is paid hourly for some tasks and on a fee basis for others, the employee will not qualify for the exemption.

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