Business Lawyers in Columbus, Ohio
By Andrew D. Randol - September 20, 2019 - Employment & Labor
In Exempt Employees Part II, our Columbus employment lawyer explained three additional categories of employees who may be exempt: computer employees, outside sales employees, and commissioned employees. In this post, our employment attorney in Columbus discusses exactly what a “salary” is under the FLSA. Colloquially, salary simply means paying an employee a pre-determined amount of money for their position, rather than requiring the employee to clock in for a set number of hours. However, the FLSA strictly defines what a salary is. It is important that employers do not inadvertently stray from the FLSA’s definition of salary basis or they could risk having their employees be reclassified as non-exempt.
Under the FLSA, “an employee will be considered to be paid on a ‘salary basis’ within the meaning of these regulations if the employee regularly receives each pay period on a weekly, or less frequent basis, a predetermined amount constituting all or part of the employee’s compensation, which amount is not subject to reduction because of variations in the quality or quantity of the work performed.”
Thus, although many employers like to measure salary on an annual basis, in reality, most employers are paying an employee a weekly salary. The most important rule for employers is that the employee must be paid this weekly salary for “any week in which the employee performs any work without regard to the number of days or hours worked.” Further, unlike hourly positions, employers cannot send an exempt employee home early in order to cur labor costs.
The minimum salary an exempt employee must be paid is currently in limbo. As of the date of this article, the minimum salary is $455 per week ($23,660 annually). A new rule was supposed to go into effect in December 2016 that would raise the minimum salary to $913 per week ($47,476 annually). However, the implementation of this rule was delayed due to an injunction granted in a lawsuit challenging the new regulation. Currently, a new rule has been proposed which would increase the minimum salary to $679 per week ($35,308 annually). However, as of the date of this post, the new rule has not yet gone into effect. Our Columbus employment attorney will monitor the situation and provide updates in future latest thinking posts. However, all employers currently paying employees a salary should monitor the situation closely and plan for an increase in the minimum salary.
Our Columbus employment lawyer can assist your business to determine if employees are appropriately classified as exempt or non-exempt and assist employers in drafting employee handbooks and other policies that can be vital to ensuring federal and state employment laws are being complied with.
 29 CFR § 541.602
 29 CFR § 541.602
 29 CFR § 541.602(b)(2)
 29 CFR § 541.600