Question: Can An Exempt Employee Be Paid A Daily Rate?

Can you pay an employee two different hourly rates?

Employers may pay employees more than one rate of pay.

As long as the alternative rate provides at least minimum wage for all hours worked, employers may establish different rates of pay.

Of course, if an employee works more than 40 hours in a workweek, the employer must provide overtime pay..

The federal Fair Labor Standards Act does permit employers to pay non-exempt workers on a day-rate basis. … Under this approach, employees receive a fixed amount of daily pay for each workday on which they perform any work, regardless of the number of hours worked in the workday.

Do exempt employees have to work 8 hours a day?

Most employers expect their exempt employees to work the number of hours necessary to get their jobs done. It doesn’t matter if that takes more or fewer than 40 hours per week. Even if your exempt employee works 70 hours in a week, you are still only required to pay them their standard base salary.

What qualifies as an exempt employee 2020?

An exempt employee is not paid overtime wages for hours worked over 40 in a workweek. To be considered exempt from FLSA, an employee must be paid on a salary basis, and must have exempt job duties. … As of January 1, 2020, the FLSA salary threshold is $36,568 per year (or $684 per week).

Is flat rate pay better than hourly?

The difference between a flat rate pay and an hourly rate pay is how you bill the client. For flat rate pay, you’re paid a set price for the job done. In contrast, hourly rate pay is based on the amount of time you work which means you’re paid a set amount for each hour of work.

How many hours can an exempt employee work?

40 hours1. Employees who are exempt can work over 40 hours without additional compensation. Here’s why: the FLSA and state fair labor standards legislation requires employees who work more than 40 hours in any work week to be paid time-and-a-half for those hours.

Do exempt employees have to be paid minimum wage?

For the professional exemption, employees must satisfy certain duties tests, but there is no minimum salary requirement under state law. Federal law establishes a minimum salary of $684 per week for the professional exemption.

Does an exempt employees have to use PTO for partial day absences?

Exempt employees are required to use their PTO hours when they are absent from work for partial or full days. … Further, even if absent for a full or partial day during a particular week, an employee is not required to use PTO for an absence in any week in which the employee works a total of more than 40 hours.

Can exempt employees leave early?

As a general rule exempt employees are paid a salary and don’t have to be paid overtime no matter how many hours they work. … Exempt employees who are late or who need to leave work early – for doctor’s appointment, child care, whatever – cannot have their pay docked for missing a couple of hours of work.

Can salaried employees get furloughed?

When a furlough is for one or more full workweeks, federal law does not require payment of the predetermined weekly salary. When a furlough is for less than one full workweek and a salaried, exempt worker performs any work during that week, the employer must pay the exempt employee’s full weekly salary.

Can a salaried employee be furloughed?

Hourly or non-exempt salaried employees need not be paid, under the FLSA or Fair Labor Standards Act. This means that an employer cannot furlough an exempt employee for one or two days. … But, if the company continues to operate as usual, the unpaid furlough would be legal.

What is the new exempt salary threshold?

The final rule takes effect on January 1, 2020 and raises the current minimum salary level for exempt employees from $455 per week or $23,660 annually, to $684 per week or $35,568 annually.

Can exempt employees be paid hourly?

An employee must be paid an annual salary, i.e., exempt employees cannot be paid an hourly wage. The employee’s weekly income can be no less than $455 per week. Keep in mind though, just because an employee is paid an annual salary that doesn’t automatically make him or her exempt.

Can an exempt employee take a day off without pay?

Full Weeks of Unpaid Time Off According to the U.S. Department of Labor, an employer is not required to pay an exempt employee during a workweek in which no work was performed. This means that an employer can require an exempt employee to take off a full week and not lose the employee’s exempt status.

Do exempt employees have to make up time?

If you are truly and properly an exempt employee, then your employer cannot dock you for time missed. That is what is done with non-exempt employees.

How many hours is a day rate?

A day rate is usually based on an eight-hour workday. A worker who is paid a day rate is entitled by law to time-and-a-half for work beyond a 40-hour week. In the U.S., a company paying a day rate is required to pay overtime if the individual works more than 40 hours a week.

Can exempt employees take half days off?

Under this definition, exempt employees generally must receive their full salary for any week in which they perform work, without regard to the number of days or hours worked. Generally if the exempt employee has paid time off available you can require them to use vacation time for partial day absences.

What is the salary level for exempt employees?

The minimum salary requirement for exempt employees according to the Fair Labor Standards Act (FLSA) is $23,600 per year or $455 per week.