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Ask the Expert: Bonus Pay for Exempt Employee Who Works on Holiday

Can you pay an exempt employee a bonus for working on a company paid holiday?

An employer may provide an Exempt Employee with additional compensation without losing the exempt status or violating the salary basis requirement if the employment arrangement also includes a guarantee of at least the minimum weekly required amount paid on a salary basis.

For example, the exemption is not lost if an exempt Employee who is guaranteed at least $455 each week paid on a salary basis also receives overtime compensation based on hours worked for work beyond the normal workweek. And an exempt employee guaranteed at least $455 each week paid on a salary basis may receive additional compensation of a 1 percent commission on sales.

An exempt employee may also receive a percentage of the sales or profits of the employer if the employment arrangement includes, as well, a guarantee of at least $455 each week paid on a salary basis.  (Note: This minimum salary threshold will increase to $913 once new overtime regulations take effect on December 1, 2016)

Such additional compensation may be paid on any basis (e.g., flat sum, bonus payment, straight-time hourly amount, time and a half, or any other basis) and may include paid time off.

The post Ask the Expert: Bonus Pay for Exempt Employee Who Works on Holiday appeared first on HR Daily Advisor.



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