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Human Resources/non-exempt salaried employees


AJH wrote at 2007-07-06 17:00:28

Part 541 governs salary basis for exempt employees.  Salary basis for nonexempt employees is covered in Part 778; see 29 CFR 778.109 to 778.329.  The basis elements:

The nonexempt employee receives each week a fixed, predetermined salary as straight time compensation for a fixed number of hours in a fixed workweek or alternating workweek. Or it pays the fixed salary for a maximum number of hours in a variable workweek or a fluctuating workweek.

The fixed or maximum hours can be 40 hours, less than 40 hours, or more than 40 hours.

For example, if the salary covers 36 hours: the employee receives the fixed salary for the first 36 hours worked; plus the regular rate for time worked from 36-40 hours; plus 1.5 times the regular rate for time worked over 40 hours.

An example with the salary covering 44 hours: the employee receives the salary for 44 hours PLUS half time pay for time worked from 40-44 hours. Thus, the employee has been paid the statutory 1.5x the regular rate for hours 40-44.  The employee is also entitled to 1.5 times the regular rate for time worked over 44 hours.

If the employee is employed solely on a weekly salary basis, the regular hourly rate of pay, on which time and a half must be paid, is computed by dividing the salary by the number of hours which the salary is intended to compensate.

There are restrictions on deductions from the fixed salary.  The employees are still nonexempt, so FLSA recordkeeping requirements still apply.

Being salaried may appeal to employees because of the flexibility and perceived status that go with it.  It can be easier to administer and may save money for the employer through lower overtime rates.  

If you are considering converting nonexempt employees to salary basis, it's a good idea to get your legal office involved.


Erin wrote at 2012-03-26 18:38:44
I am salaried but non-exempt. Once I work 37.5 hours in a week, I will automatically get paid my 40 hours for that week. But I can still get overtime if I work more than 40 hours in a week. But if I work 39 hours, I'll still only be paid 40 hours. Whereas just a non-exempt employee would only get paid hours they work. So if they hit 37.5, that's what they'll get paid for, is 37.5. That is how my company runs. I hope that helps as well!

pfb wrote at 2014-05-16 00:19:15
Brian - you are wrong on this.  Salaried and exempt are not the same thing and you're making the same mistake many who don't understand this make.  

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brian warmuth


I can answer just about any Human Resources related question. From employee disciplinary matters to general administrative issues, to performance evaluation and review, to EEO/AA, team building, training and development, you name it.


Over 23 years in public and private sectors, in manufacturing and service industries, including banking, glass and steel manufacturing, to hospitals, to higher education. I've worked in unionized and non-union environments and negotiated union/management labor agreements.

MS Industrial and Labor Relations
BA Psychology

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