Is it OK to pay extra amounts, in addition to the salary, to exempt employees?
A. Yes. Oregon regulations specify that extra amounts may be paid to exempt employees even if they are based on hourly rates. Federal regulations do not specify that extra compensation may be paid on an hourly basis, but state that bonuses, commissions, or shift amounts may be paid in addition to the guaranteed salary. Some court cases have questioned the practice of paying extra amounts on an hourly basis. Therefore, it is recommended that extra amounts be in the form of bonuses or other “lump” sums rather than “hour for hour.” Q. Is it permissible to reduce the exempt employee´s salary if the employer shuts down for part of a week due to slowdowns in orders, or for equipment failures, or for other operating requirements of the business? A. No, the general rule requires that exempt employees be paid for the full week if any part of the week has been worked.
Related Questions
- Why do Fellowhip Sponsors pay IISME in addition to paying teacher stipends? Why should I pay this extra amount instead of hiring a teacher directly?
- How are employees who earn a salary or wage and incentive pay paid for overtime?
- Is it OK to pay extra amounts, in addition to the salary, to exempt employees?
