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Monthly Archives / August 2014

  • Aug 11 / 2014
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Suspending Exempt Employees without Pay

If an Employer suspends an exempt employee for less than a full workweek, the employee must be paid for that time, for purposes of maintaining the employee’s exempt status. Both the U.S. Department of Labor and the Labor Commissioner allow an exempt employee to be off a full workweek without pay.  Caution; even if the suspension is for a full workweek, the Labor Commissioner raises the caveat that if such a suspension, without pay, reduces the employee’s monthly salary to an amount less than the statutory minimum, the exemption could be lost. Employers also should be aware that if the exempt employee works part of the day, he or she must be paid for the whole day. Employers can fill in the missed part of the partial day, however, from available sick leave or vacation banks. Criteria for Exempt Employees; California Labor Code Section 515 provides that executive, administrative and professional employees are exempt from overtime if they meet the established duties tests, customarily and regularly exercise discretion and independent judgment in performing those duties and earn a monthly salary of no less than double the minimum wage for full-time work. —-HR Alert, Cal Chamber, June 20, 2014

 

 

 

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