• LinkedIn
  • YouTube
  • Twitter
  • Facebook
  • Google+

Discovered mistaken deduction from exempt pay? Fix it fast, or face big liability risk

Get PDF file

by on
in Centerpiece,Employment Law,Human Resources

Deduction mistakesEmployees who are exempt under the Fair Labor Standards Act do not have to receive overtime pay when they work more than 40 hours in a workweek. Employers must follow specific rules in order to declare an employee exempt:

  • Second, exempt employees must be paid a set amount on a salary basis. That is, they receive the same salary regardless of the quantity or quality of the work performed in any given week (with some very limited exceptions).

That second point means it’s almost never appropriate to withhold any of an exempt employee’s pay.

But what happens if an employer makes a salary deduction either inadvertently or because it mistakenly believed it was allowed?

Unless the employer quickly reverses the deduction, it could jeopardize the exempt status of the employee in question—and every other employee with the same exempt status doing the same job.

And tha...(register to read more)

To read the rest of this article you must first register with your email address.

Email Address:

Leave a Comment