Exempt Employee

This is an employee who is defined by the Federal Labor Standards Act (FLSA) as being exempt from this law’s minimum wage and overtime requirements. According to the Wage and Hours Division of the US Department of Labor, only “bona fide executive, administrative, professional and outside sales employees” who meet certain requirements are exempt from minimum wage and overtime laws. Download Your Free Report on FLSA
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Performance Management Survey Result—How Do You Measure Up?

"Results are in from the 2014 Performance Management Survey. How does what you do compare with what the 1,481 survey participants do? Highlights:
  • 91.9% of the organizations represented by our survey participants conduct performance appraisals.
  • 75.2% rate their organization as average or above regarding the way it conducts performance appraisals.
  • The worst error is that the rater does not follow up with the employee after the evaluation to check on progress.

How Well Do You Measure Performance?

Regarding the way their organization conducts performance appraisals, a hefty 75.2% rate their organization as average or above. Details:

7 Instances Where Exempt Employee Pay Can be Deducted for Absences

While the FLSA allows some very specific pay deductions for exempt employees, such as taxes and wage garnishments, it's typically quite strict about the fact that exempt employee pay shouldn't be reduced for exempt employee absences in most cases. It's important for employers to understand when certain payroll deductions may be perfectly legal, and when others may not be under federal law so they can keep their organization in compliance.

Let's take a look at some of the exceptions—some of the rare instances where exempt employee pay can be reduced for absences.

When Exempt Employee Has No PTO, Takes Time Off

"PTO banks are working well for many employers. They simplify time off requests, and they can also be a way to ensure that salaried employees do not take advantage of their salaried status by taking time off without boundaries. However, when poorly administered, PTO can cause employees to lose their exemptions."

PTO helps to bridge the gap between being required to pay salaried employees their full salary in a given workweek (even if they don’t work a full workweek), while also balancing how much time off can be taken without it becoming a problem.

Employers often find themselves in a conundrum, however, over how to handle miscellaneous time off that was never even requested as PTO. For example, what happens when the work hours are 8 a.m. to 5 p.m., but an employee has a personal appointment that requires him or her to arrive late? Usually this is not much of a question—that employee takes PTO for the time off and comes in as soon as possible and still receives a full salary for the week. But what if that employee doesn’t have any more PTO left to use? What if it’s not an appointment, it’s just a significantly late arrival time?

Employee Pay Deductions Q&A: Garnishments, Exempt Employees, and Loan Repayments

"Attorney Sharolyn Whiting-Ralston of McAfee & Taft answers your tricky pay deduction questions."

Can an exempt employee be given a loan that is repaid via payroll deduction, or does this violate the idea that exempt employee pay cannot be reduced? What is the maximum amount that can be deducted from an employee’s pay if they have multiple different garnishment orders? These thorny questions were addressed by Sharolyn Whiting-Ralston in a recent BLR webinar. Check out those questions and more here:

Performance Management Survey Results in; How Do You Compare?

"Most everyone does appraisals (94% of respondents) but not everyone thinks they are doing them well (4% say they do a “terrible” job and 32% say appraisals are “nearly impossible to implement”), according to our recent survey of performance management practices."

Some other highlights of the 2013 Performance Management Survey:

  • Employee self-evaluation is part of the process for 58% of respondents and peer evaluation is a best practice for 11%.
  • 22% believe that the employees in their organization are pleased with their individual pay-for-performance program.