An employer may provide an exempt employee with additional compensation without violating the salary basis requirement if the employment arrangement also includes a guarantee of at least the minimum required salary of $455 per week. For example, an exempt employee may be paid the minimum required salary plus additional compensation for working beyond the normal workweek. Such additional compensation may be made in any of the following forms:
commission on sales
percentage of sales or profits
flat sum
bonus payment
paid time off
straight-time hourly pay
time and one-half pay
any other basis
To qualify for exemption, employees generally must meet certain tests regarding their job duties and meet certain compensation requirements. Job titles do not determine exempt status.
Questions? Contact an overtime lawyer at Werman Law Office, P.C.
|