For termination day, how much do we pay? — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

For termination day, how much do we pay?

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in Compensation and Benefits,Human Resources

Q. Our pay period is Sunday through Saturday. A salaried employee is being laid off on Monday. Should she be paid hourly for time worked during that final pay week?  Does that include the unauthorized time she informed her supervisor she worked on Sunday?

A. The FLSA says salaried, overtime-exempt employees must be paid no less than a full day for any day that they work in a week. If the employee comes in on Mon­­day, she must be paid for that full Monday—but only Mon­­day, not for the remainder of the week. If she does continue to work into that week, she should be paid for a full day for each day on which she performs some work.  

Your question about her working unauthorized time on Sunday suggests that she is paid a salary only on the expectation that she works no more than 40 hours a week and that she is not, in fact, an overtime-exempt worker. In that case, she has always been entitled to pay on an hourly basis. It is just that you guaranteed her a minimum salary for each week in which she worked your standard schedule (and hopefully she has been paid overtime for any hours worked in excess of 40). If this is the case, yes, you must pay her for all hours worked, including the un­­authorized Sunday work. However, since your workweek is Sunday through Saturday, you won’t owe her overtime wages unless she works more than 40 hours that week.

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