Paying a fixed salary, regardless of hours worked, is generally limited to exempt employees. This webinar provides an understanding of the rules for such plans. The compliance requirements for such plans are strict. Understanding them is critical.
Paying a fixed salary, regardless of hours worked, is generally limited to exempt employees. The amount paid to a non-exempt employee, even if salaried, is usually subject to adjustment with variations in hours worked. Where the requirements are met, however, a non-exempt employee can be paid a fixed salary each workweek even though the hours vary from week to week.
Understanding the rules for such plans is critical. It is important for employers to be aware that such plans do not reduce the need to keep accurate records of hours worked. Such plans have strict requirements for compliance.
A fluctuation workweek plan allows for a set salary, regardless of the number of hours worked, for regular pay purposes, but requires overtime compensation for hours worked in excess of the statutory maximum. Under this plan, pay in addition to the regular salary is restricted and an employee’s hours must fluctuate from workweek to workweek. Employees may also be paid under other plans that smooth employee earnings such as day or job rates or for a “stint”. However, it is important for employers to be aware that such plans do not reduce the need to keep accurate records of hours worked.
In addition, the Department of Labor has identified a number of plans that employers have attempted to use that do not meet the statutory requirements of the FLSA. Such plans include such things as artificial wage rates, split day plans, pseudo bonuses or a low “regular” rate supplemented by employer provided “facilities”. Use of such plans can be costly to employers in terms of payment of back wages and penalties.
Why Should You Attend:
Changes to the white-collar exemptions from the minimum wage and overtime requirements of the Fair Labor Standards Act have many employers faced with reclassification of some currently exempt employees paid on a fixed salary basis to nonexempt status.Paying a fixed salary, regardless of hours worked, is generally limited to exempt employees. The amount paid to a non-exempt employee, even if salaried, is usually subject to adjustment with variations in hours worked. Where the requirements are met, however, a non-exempt employee can be paid a fixed salary each workweek even though the hours vary from week to week.
Understanding the rules for such plans is critical. It is important for employers to be aware that such plans do not reduce the need to keep accurate records of hours worked. Such plans have strict requirements for compliance.
A fluctuation workweek plan allows for a set salary, regardless of the number of hours worked, for regular pay purposes, but requires overtime compensation for hours worked in excess of the statutory maximum. Under this plan, pay in addition to the regular salary is restricted and an employee’s hours must fluctuate from workweek to workweek. Employees may also be paid under other plans that smooth employee earnings such as day or job rates or for a “stint”. However, it is important for employers to be aware that such plans do not reduce the need to keep accurate records of hours worked.
In addition, the Department of Labor has identified a number of plans that employers have attempted to use that do not meet the statutory requirements of the FLSA. Such plans include such things as artificial wage rates, split day plans, pseudo bonuses or a low “regular” rate supplemented by employer provided “facilities”. Use of such plans can be costly to employers in terms of payment of back wages and penalties.
Learning Objectives:
- Learn when a guaranteed pay plan makes sense for the employer
- Understand the recordkeeping requirements for fixed salary plans
- Discover how a fluctuating workweek plan could be beneficial
- Learn which deductions from salary are allowed, and which are prohibited
- Learn which plans fail to meet FLSA standards and why they fail
- Learn how to handle FMLA leave under guaranteed pay plans
- Investigate how paid time off is applied to the fixed salary
- Understand bonuses and fluctuating workweek plans
- Appreciate how the half time pay method works
- Learn the techniques used to control overtime costs
- Discover how to assure fixed salary employees are properly compensated for overtime
- Gain an appreciation for how Belo Plans differ from other guaranteed pay plans
- Know whether workweek hours must fluctuate on both sides of forty hours per workweek
Areas Covered in the Webinar:
- Detailed discussion of requirements for allowable methods
- Discussion of potential use of Fluctuating work week as a remedy in employee misclassification cases
- Examples of situations in which particular guaranteed pay plan might be beneficial
- Examples of plans including numerical tables that show the effects on employee compensation
- Examples of plans that do not meet the FLSA requirements
- The importance of a clear and mutual understanding between employer and employee of the pay plan
Who Will Benefit:
- Payroll Supervisors and Personnel
- Payroll Consultants
- Payroll Service Providers
- Public Accountants
- Internal Auditors
- Tax Compliance Officers
- Enrolled Agents
- Employee Benefits Administrators
- Officers and Managers with Payroll or Tax Compliance Oversight
- Company/Business Owners
- Managers/Supervisors
- Public Agency Managers
- Audit and Compliance Personnel/Risk Managers
Speaker
Patrick A HaggertyCourse Provider
Patrick A Haggerty,
