Q:

What are the rules for salaried employees?

A:

Quick Answer

Salaried employees and their employers must follow certain rules, which primarily concern unallowable salary deductions, absence of required workweek schedules and ineligibility for overtime pay, notes the U.S. Department of Labor. Under the federal Fair Labor Standards Act, certain salaried employees are exempt from minimum wage and overtime pay regulations.

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Full Answer

Salaried employees, who receive a regularly scheduled and set amount of pay instead of an amount based on the number of hours worked, can be classified as exempt employees, for whom the Fair Labor Standards Act's minimum federal wage and right to overtime pay requirements do not apply, explains Chron.

If the salaried employee is exempt, then in most circumstances she must receive her full salary without deductions regardless of the actual number of hours worked, according to the U.S. Department of Labor. Only in limited situations is an employer allowed to deduct a salaried employee's pay. In most cases, the salaried employee who works at least once in a workweek must receive her salary in full. The salary also cannot be reduced because of variations in the worker's productivity or quality.

Exempt salaried employees must be compensated a minimum of $455 a week, reports the U.S. Department of Labor.

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