When Is Docking an Exempt Employee's Salary Allowed?

Guide
Wage & Hour
Exempt Classification

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This resource summarizes requirements under federal law. Employers should check local and state regulations to ensure compliance. Special rules may also apply to public agency employees.

Under the Fair Labor Standards Act (FLSA), employers must pay covered employees minimum wage and overtime pay for hours worked over 40 in a workweek. Section 13(a)(1) of the FLSA provides an exemption from both minimum wage and overtime pay for employees employed as bona fide executive, administrative, professional, and outside sales employees. Section 13(a)(1) and Section 13(a)(17) also exempt certain computer employees. To qualify for exemption, employees generally must meet certain tests regarding their job duties and be paid on a “salary basis.”

FLSA Notebook