Our team of experts fields real-life, everyday questions from HR managers and gives practical answers that can be applied by any HR pro in the same situation. Today’s question: Under the FLSA, can we pay an employee a fixed salary of less than $455 a week?
Question: We know that anyone making less than $455 a week is considered nonexempt and eligible for overtime pay. But is it OK to pay someone a fixed salary of less than $455 a week? And if so, what happens when that person works more than 40 hours in a week?
Answer: First, you can pay someone a fixed salary of less than $455 a week, according to employment law attorney John Lowe. That person still is considered nonexempt.
Second, if that person works more than 40 hours in a week, you’re obligated to pay overtime. Because of the overtime factor, it’s wise to have the person record the hours worked each week. That’s something you wouldn’t have to do with an exempt, salaried employee who doesn’t get OT pay.
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