Question:
We have an exempt employee who is going to be working part-time hours indefinitely. Do we need to switch them to hourly nonexempt or can we simply reduce their salary while keeping them exempt?

Answer from Shawna, SHRM-CP:

You don’t necessarily need to change their classification, but the minimum salary for exempt employees—which will be determined by federal or state law—can’t be prorated based on the number of hours worked. This means you can only keep the employee as exempt if, after the salary reduction, they still make at least the applicable minimum salary. If their new pay is below the minimum for exemption, you’ll need to reclassify them as nonexempt and pay them based on the number of hours they work.

This Q&A does not constitute legal advice and does not address state or local law.

After working in the mental health field for nearly a decade, Shawna became an HR professional and obtained a masters in Industrial/Organizational Psychology with a Society of Human Resources Management certification. She also holds a Bachelor of Arts in Psychology and a Minor in Sociology. In her free time, Shawna enjoys hiking with her family, backpacking, running, and reading.

Question:
We are considering closing the office the day before an upcoming holiday, giving employees an . How would this work for our exempt employees?

Answer from Celine, SHRM-CP:

The Fair Labor Standards Act generally requires that exempt employees—employees who are exempt from the law’s overtime requirement—be paid their regular salary regardless of the number of hours they work in a workweek. If your exempt employees are otherwise working the week of the holiday, you can’t designate it as an unpaid day for them.
As with nonexempt employees, you can require exempt employees to use accrued vacation or paid time off (PTO) to cover the closure. However, exempt employees who don’t have accrued vacation or PTO available to cover the day off still need to be paid during the closure unless they didn’t perform any work during the workweek. If you intend to require the use of PTO or vacation to cover closures, you should explain that in your handbook or policies so employees know what to expect.
This Q&A does not constitute legal advice and does not address state or local law.

Celine has over a decade of customer service experience under her belt, including healthcare and food service expertise. She’s fluent in French and proficient in Spanish, making her nearly trilingual. Céline serves on the board of a non-profit that organizes a citywide music festival. She loves spending her time exploring the outdoors, playing with her nieces and nephews, and cooking.

Questions?
Vital Signs Insurance Services, Inc.
PO Box 6360
Folsom, CA 95630
Phone: (916) 496-8750
Email: [email protected]
Fax: (916) 496-8754