Are part-time white-collar workers exempt?
Issue: An administrative analyst performs the duties of an exempt employee but currently works part-time for 20 hours per week. The full-time salary for this position is $500 per week. Can you prorate the salary to $250 and still claim the administrative-employee exemption under the Fair Labor Standards Act (FLSA)? Answer: No. The FLSA’s salary standard for exemption as an executive, administrative or professional employee may not be prorated. The exemptions apply only when employees earn at least $455 weekly, regardless of the number of hours they work. Since the administrative analyst earns only $250 weekly, that person is not exempt. There is no problem with paying the employee on a salary basis. However, the regulations make no provision for reduced pay for reduced hours. Note, however, that there is no wage violation unless the employee works for an unusually long week and the hourly rate falls below the minimum wage. Also, overtime pay would be due if the employee worked more tha