Reopening Practice Tip Regarding Exempt Employees

Volume: 19 | Issue: 30
May 28, 2020

As employers reopen and return employees to work from furloughs, be mindful of potential Fair Labor Standards Act (FLSA) issues. A salaried employee who is classified as exempt from overtime under the FLSA is entitled to receive a predetermined amount of compensation each pay period. This amount cannot be reduced because of variations in the quality or quantity of work. As such, exempt employees generally must receive their full predetermined amount of compensation for any week in which they perform any work, regardless of the number of days or hours worked.

Thus, it is wise to consider returning furloughed exempt employees to work at the start of their workweek, instead of at the end of their workweek. Moreover, if you require COVID-19 testing of either exempt or non-exempt employees, the time they spend being tested likely constitutes compensable work time. For exempt employees, such testing most likely triggers the workweek payment requirement.

If you have questions about these issues or would like to discuss options available to employers to manage these requirements, please contact a KZA attorney.

KZA Employer Report articles are for general information only; they are not intended and should not be construed to be legal advice. Reading or replying to such articles does not establish an attorney-client relationship. In addition, because the subject matters and applicable laws discussed in Employer Report articles are often in a state of change and not always applicable to every type of business entity or organization, readers should consult with counsel before making decisions based on the same.