In a key Opinion Letter, the U.S. Dept. of Labor responded to a company’s request to prorate the pay of an exempt employee working part time.

What happened: An employer asked if it’s acceptable practice to prorate the minimum allowable salary of an exempt employee to match his 20-hour-a-week part-time status. The company wanted to pay the employee an annual salary of $15,000 – less than the $23,660 minimum allowed by the Fair Labor Standards Act.

DOL’s answer: No. In an Opinion Letter, the DOL refused to allow a prorated salary for an exempt employee whose workweek is less than 40 hours.

Reason: Employees classified as exempt under the FLSA are not entitled to overtime and are exempt from various other wage and hour rules. Someone you classify as exempt must be paid a minimum salary set by law, and also perform certain defined duties.

That minimum salary is $23,660 annually, or $455 per week – no exceptions. The amount must be paid even if the employee works part time. An employer wishing to pay an employee less than the minimum would have to reclassify the worker as a nonexempt employee and pay the employee on an hourly basis.

Note: DOL Opinion Letters don’t carry the weight of law, but they are considered guides for legally applying the law.

To see to the full DOL opinion letter, go to: www.dol.gov/esa/whd/opinion/FLSANA/2008/2008_02_14_01NA_FLSA.htm

Tags: department of labor, dol, fair labor standards act, FLSA, overtime