Posted by Dwight Steward, Ph.D. | U.S. Economy

Ok, so you have a group of exempt employees that receive a set salary amount and additional compensation each week.  How do you analyze this type of OT exemption?

29 C.F.R §541.604 provides some guidance on the issues.  For instance, 29 C.F.R §541.604 provides a number of examples where employees receiving this type of salary compensation would still be correctly classified as exempt workers.  For instance in 29 C.F.R §541.604(a), an exempt employee guaranteed at least $455 each week would still be correctly classified if they received additional compensation of 1% sales commission or profits.  The employees, according to 29 C.F.R §541.604 the employees could also receive additional compensation  based on the hours worked above a normal week and remain correctly classified.

 

 

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