Extra compensation for exempt employees
MS HR
186 Posts
To all you HR gurus out there:
Is there a way I can reward my exempt employees once or twice a year for all the extra hours they put in? I'm thinking maybe a "bonus" or something?
I want to be sure not to risk my exemption status, though.
Any ideas would be most appreciated.
Is there a way I can reward my exempt employees once or twice a year for all the extra hours they put in? I'm thinking maybe a "bonus" or something?
I want to be sure not to risk my exemption status, though.
Any ideas would be most appreciated.
Comments
Just a thought. It worked for us!
It's something for us to consider.
My thinking, though, is that are expecting cash.
I'm looking at about $500 each twice a year, or thereabouts.
I appreciate the input.
The US Department of Labor has also taken the postion that you may pay overitme to exempt employees in any manner, including comp hourly or even "cash" per hour, as long as you don't inappropriately dock their salary.
The specific wording from 541.118(b) is:
"Minimum guarantee plus extras. It should be noted that the
salary may consist of a predetermined amount constituting all or part of
the employee's compensation. In other words, additional compensation
besides the salary is not inconsistent with the salary basis of payment.
The requirement will be met, for example, by a branch manager who
receives a salary of $155 or more a week and in addition, a commission
of 1 percent of the branch sales. The requirement will also be met by a
branch manager who receives a percentage of the sales or profits of the
branch, if the employment arrangement also includes a guarantee of at
least the minimum weekly salary (or the equivalent for a monthly or
other period) required by the regulations. Another type of situation in
which the requirement will be met is that of an employee paid on a daily
or shift basis, if the employment arrangement includes a provision that
the employee will receive not less than the amount specified in the
regulations in any week in which the employee performs any work. Such
arrangements are subject to the exceptions in paragraph (a) of this
section. The test of payment on a salary basis will not be met, however,
if the salary is divided into two parts for the purpose of circumventing
the requirement of payment "on a salary basis." For example, a salary
of $200 in each week in which any work is performed, and an additional
$50 which is made subject to deductions which, are not permitted under
paragraph (a) of this section."
Subsection (a) is the provision that identifies both permissible and impermissible docking reasons.
Thank you many times over.
I hope I can return the favor some time.