5 Things Salaried Workers Need to Know About Labor Laws

Are you a salaried employee? While all employees have labor and wage protections, many people working for a set salary may not fully understand how those laws apply to them. To help you make sure you access your rights and understand your responsibilities, here are a few key things to know about labor laws and salary positions.

1. Salaried Employees Are Not Necessarily Exempt

Many people think of salaried employees and exempt employees as the same thing. However, while these two categories are linked, they are not identical. An exempt worker is one who is exempt from mandatory overtime wages once they work beyond the limits set by the federal government. Only salaried workers — not hourly workers (mostly) — can be exempt from overtime rules.

However, to be exempt, that salary position must also pass several other criteria. The position is usually administrative, executive, or professional. Each category is defined by the Fair Labor Standards Act. For instance, an executive salaried position must supervise at least two others to qualify as exempt. Therefore, some salaried workers must still be paid overtime. Each inquiry requires a fact intensive inquiry and analysis to determine if the law is violated.

2. Salaried Employees Have the Same Basic Rights

While you may be exempt from some wage protections like overtime, this doesn't mean you have to put up with everything your employer does. All employees have the right to the same basic work protections. You have the right to a safe workplace and one that is free from harassment or discrimination. And if you exercise any of these rights, your employer cannot target you in a retaliatory or harassing manner.

3. Salaried Employees At Small Businesses May Have Challenges

The Fair Labor Standards Act (FLSA) does have some exceptions for certain businesses — primarily small ones. Generally, FLSA does not apply to businesses that do business in only one state and whose goods and sales don't cross into other states. In addition, the business must have fewer than $500,000 in annual sales. However, small businesses that require employees to use the internet or telephones to interact with out of state customers or run credit card transactions may still be subject to the Fair Labor Standards Act.

If your employer falls into these categories, you should consult with an employment attorney to determine what protections you may still have under other laws (like the Americans with Disabilities Act). The number of employees matters for discrimination laws, but not for wage & hour laws.

4. Salaried Employees Only Have Certain Deductions

Salary-based employees generally may only have their pay deducted in certain circumstances. Their pay, for example, cannot be deducted based on quality or quantity of output. And if the employee is ready and willing to work but there is no work available, they must be paid their standard amount. This is in direct contrast to most hourly workers.

Like all employees, though, you can see deductions for unpaid absences like sick days, unpaid vacation, and personal days. The salaried worker may also see deductions for safety violations and disciplinary suspensions.

5. Salaried Employees Must Receive a Minimum Wage

Paying a worker a set wage no matter what hours they work can benefit employers, but it also must provide a minimum benefit to the employee. To be exempt from overtime, the employee must usually be paid at least $684 per week. This base is designed to account for the possibility of unpaid overtime work.

However, even if the position is not exempt from overtime, it must still result in the equivalent of minimum wage for the expected number of hours. So if the position is 20 hours per week, the salary rate per week must be equal to at least the minimum wage per hour.

Where You Can Learn More

Clearly, salaried workers can be affected by labor laws in many ways. Some employees may be able to seek the full payment of overtime while others cannot. But all employees have the right to protections no matter how they are paid. And all employees have the right to seek redress when their rights are violated.

Do you need help determining if your employer is violating your rights as a salaried employee? Or could you use assistance asserting your rights? Start by consulting with the employment law professionals at Allen D. Arnold Attorney at Law. We will work with you to find the best solution to all your labor law concerns.

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