Quick Quiz: FLSA "Salary Basis" of Pay


Robin is in charge of the 50-employee Shipping Department at Furniture World. She is treated as an exempt "executive" employee under the federal Fair Labor Standards Act, including that she is paid a salary of $950 per week. Furniture World adopts a policy that all supervisory employees:

• Are required to keep accurate records of their worktime,

• Must work at least 50 hours a week, and

• Must make the time up in a later week if they work less than 50 hours in a week.

The supervisors are subject to discipline or discharge if they fail to work at least 50 hours in a week and do not make up the time.

A month after the policy is implemented, Robin has a car problem one morning on the way in and ends up working only 46½ hours for the week. Angrily telling her boss that she has a right to a personal life, Robin refuses to work extra time in a later week to make up the 3½ hours.

Does Furniture World's policy destroy the FLSA "salary basis" of pay required as part of Robin's exempt status?

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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