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What pay-related rights do exempt employees have?

On Behalf of | Aug 7, 2023 | Employment Law

Exempt employees do not fall under the provisions of the federal laws governing minimum wages and overtime. As noted by TheStreet.com, however, individual state laws could determine the minimum salary for an exempt employee. Colorado, for example, has set the current minimum yearly salary amount for an exempt employee at $50,000.

Despite the lack of overtime pay for any extra hours worked, exempt employees typically appreciate the income predictability. Exempt employees’ paychecks generally remain the same every pay period even when they may have worked fewer hours than usual.

Could companies require exempt employees to work over 40 hours a week?

As described by Business News Daily, a company can expect their exempt employees to complete their assigned duties even if it requires more than a 40-hour week. It is not illegal for an employer to demand that exempt employees fulfill all of their responsibilities before they leave work.

Exempt employees typically have a much greater amount of responsibility than their non-exempt hourly-wage coworkers. With the extra responsibility and its associated yearly salary, an employer can reasonably expect exempt staff members to pitch in extra hours when business operations or deadlines require it.

When could a company dock an exempt employee’s pay?

An employer cannot dock an exempt employee’s pay for leaving work early or arriving hours late. If, however, an employee has run out of paid time off or sick days and then misses an entire workday, he or she could expect to see a full day’s pay docked from the next paycheck.

Remaining aware of the differences and applicable laws governing exempt and non-exempt employees could help avoid problems. Both employees and their employers may have much to gain from remaining mindful of the issues affecting responsibilities, wages and hours worked.