Quick Answer: Can You Reduce An Exempt Employee’S Hours?

How many hours can an exempt employee be forced to work?

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..

Can your employer reduce your hourly rate?

Legally, an employer cannot impose a pay cut upon its employees if they have an employment contract that sets out details of their salary entitlement. This decision is therefore one the employees in questions will have to consent to.

Can I refuse a pay cut?

By law, employers cannot unilaterally cut an employee’s pay. … No one can force you to take a pay cut, so you could reject such an offer even if your fellow workers accept.

How much do you have to make to be an exempt employee?

The minimum salary requirement for exempt employees according to the Fair Labor Standards Act (FLSA) is $23,600 per year or $455 per week. However, the exempt salary minimum alone does not classify an employee as exempt. Salary level is one of three tests used to determine employee exempt status.

Can salaried employees be forced to work 7 days a week?

The federal law doesn’t restrict how many hours you can be required to work in a day, although some state laws do. Hourly employees and non-exempt salaried employees must be paid overtime if they work more than 40 hours in a week. A week is defined as a fixed time period of 168 hours, or seven consecutive 24-hour days.

When can you reduce exempt employee pay?

An employer can substitute or reduce an exempt employee’s accrued leave (or run a negative leave balance) for the time an employee is absent from work, even if it is less than a full day and even if the absence is directed by the employer because of lack of work, without affecting the salary basis payment, provided …

If an employer cuts an employee’s pay without telling him, it is considered a breach of contract. Pay cuts are legal as long as they are not done discriminatorily (i.e., based on the employee’s race, gender, religion, and/or age). To be legal, a person’s earnings after the pay cut must also be at least minimum wage.

Is it better to be an exempt or nonexempt employee?

There are pros and cons of being either an exempt or non exempt employee. While exempt employees tend to make more money per year, non exempt employees have the opportunity to out earn exempt employees per hour depending on overtime opportunities.

Can a salaried employee take an unpaid day off?

However, salaried employees are paid an annual wage regardless of the hours worked. … Regardless of the reason for the absence, you cannot reduce a salaried employee’s wage as the result of that employee taking a day off work. However, you can require non-exempt hourly employees to take unpaid time off.

Do exempt employees have to make up time?

If an exempt, salaried employee shows up for work, even if it’s just for 15 minutes, he or she must be paid for the entire day. That’s the rule. The employer can discipline, fire, or demote the employee. But it cannot dock the employee’s pay.

Do salaried employees have to work 8 hours a day?

The standard workweek assumes that full-time salaried and hourly employees work eight hours daily. The basis of this calculation is a five-day workweek at 40 hours per week. However, the FLSA does not dictate any specific number of daily hours for salaried employees.

Can you reduce an exempt employee’s salary?

Is there any legal way to reduce an exempt employee’s salary? The answer is “yes.” Under certain circumstances, an exempt employee’s salary can be reduced, according to the U.S. Department of Labor. In order for the exempt employee’s salary reduction to be defensible, it should be: Permanent.

Can salaried employees pay be reduced?

Despite the strict rules for exempt classification, employers can still reduce employees’ salaries in some situations. … Employees must be paid at least $684 a week ($35,568 annualized) to remain exempt from overtime pay under the FLSA, but the minimum salary may be higher under state law.

Can my employer change my contract and reduce my pay?

LC: Your employer’s ability to make changes to your contractual terms, including reducing your salary, will depend upon the terms of your contract and usual employment law considerations. Normally, any variations to the contract (including any reduction in salary) must be agreed with you in advance.

When can you reduce an employees salary?

A salary reduction can’t occur unless you notify the employee of the pay cut first. Inform employees of any salary reductions before changing their pay rate. If an employer cuts pay without notifying an employee, it can be considered a breach of contract, depending on if there’s a contract involved.