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Salaried Employee Rights & Comp Time

The factors that influence the rights of a salaried employee depend on whether she’s exempt or nonexempt. Though most salaried employees are exempt, a few are nonexempt. As a salaried exempt employee, your employer does not have to pay you overtime, but if you’re salaried nonexempt, you qualify for overtime. Depending on your situation, you may qualify for compensatory time.

  1. Comp Time Identification

    • The Fair Labor Standards Act is the federal law that sets the provisions for whether you’re exempt from overtime pay. Under the FLSA, public sector employers might provide compensatory time off as way of paying overtime. Comp time must be given at the same rate as overtime pay, which is 1 1/2 times the employee’s regular pay rate. Specifically, rather than paying cash, an employer might allow an employee to take comp time at no less than 1 1/2 hours for each overtime hour worked. As of the time of publication, firefighters, police officers, emergency response employees and seasonal employees may accumulate up to 480 hours of compensatory time. Other employees can accumulate up to 240 hours. Under the FLSA, only nonexempt public sector employees are eligible for comp time. Private sector employers cannot use comp time to substitute for overtime pay.

    Considerations

    • Private sector employers should check with their state labor department for compensatory time policies because state and local laws might provide nontraditional compensatory time to nonexempt employees under certain conditions. For example, state law might allow comp time if an employee’s work hours exceed 35 for the week. Because the FLSA requires overtime pay for work hours that exceed 40 for the week, state law would provide comp time for work hours between 35 and 40. Furthermore, if an employment contract exists that provides comp time for work hours that exceed eight in a day, provided the employee does not work more than 40 hours for the week, an employer may grant comp time for hours worked in excess of eight for the day.

    Exempt Rights

    • As a salaried-exempt employee, though you do not qualify for overtime or comp time, you have many rights under the FLSA. Exempt employees must usually receive a full day’s pay even when they take a partial day off, unless a permissible deduction applies. Furthermore, in most cases, your employer must pay you full salary each pay period, except for weeks in which you do no work. Your employer cannot reduce salary because of the quality or quantity of work performed, except in certain instances, such as if an economic decline causes a decline in business. Under the FLSA, an exempt-salaried employee must receive no less than $455 per week, as of the time of publication; state law might require a higher amount. Though your employer does not have to pay you overtime, if you work more than 40 hours for the week and if he wants to, he can give you additional compensation in form of a flat sum, bonus, or overtime or straight-time pay.

    Nonexempt Rights

    • If you’re nonexempt-salaried, your salary is likely based on you working a certain number of hours for the week. You qualify for overtime pay if you work more than 40 hours for the week, and must be paid no less than the federal or state minimum hourly wage, whichever is higher.

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