Don't use exempt positions as a reward
A salaried position is desirable for a variety of reasons, including the stability that an income freed from many employee time considerations provides. While some employers may have their hearts in the right place by rewarding employees with salaries, such an action can easily violate the Fair Labor Standards Act.
A recent article on DVM 360, a veterinary medicine website, helps employers in this field understand that shifting employees to salaries isn't simply a pay change; it involves having to meet classifications and exemptions under the FLSA, and such changes aren't legally applicable to all employees. Employers in all industry segments should know that a salary isn't a reward, it's a designation that carries legally actionable requirements.
The most common exemptions for salaried employees under the FLSA involve workers who perform administrative, executive, outside sales, computer repair and professional duties. Employees have to possess unique skills and in some cases perform or not perform specific duties to qualify. Additionally, all of these exemptions require a weekly salary of at least $455.
Many businesses have at least some employees that cannot qualify as exempt and therefore need to be paid hourly. Employee management software can help companies manage the wages and hours worked by their employees.
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