The Fair Labor Standards Act (FLSA) is a federal law which requires that most team members in the United States be paid at least the federal minimum wage for all hours worked and overtime pay at time and one-half the regular rate of pay for all hours worked over 40 hours in a work week.
The FLSA provides an exemption from both minimum wage and overtime pay for team members employed as bona fide Executive, Administrative, Professional, Outside Sales, and some Computer team members. To qualify for exemption, team members must meet certain tests regarding their job duties and be paid on a salary basis, according to Department of Labor (DOL) regulations. See Employment Categories for more information on exemptions.
For team members determined to be exempt, the predetermined amount of compensation cannot be reduced because of variations in the quality or quantity of the team member’s work. Subject to exceptions listed below, an exempt team member must receive the full salary for any workweek in which the team member performs any work, regardless of the number of days or hours worked. Exempt team members do not need to be paid for any workweek in which they perform no work.
Deductions from pay are permissible when an exempt team member: is absent from work for one or more full days due to sickness or disability if the deduction is made in accordance with a bona fide plan, policy, or practice of providing compensation for salary lost due to illness; to offset amounts team members receive as jury or witness fees, or for military pay; or for unpaid disciplinary suspensions of one or more full days imposed in good faith for workplace conduct rule infractions. Also, an employer is not required to pay the full salary in the initial or terminal week of employment, for penalties imposed in good faith for infractions of safety rules of major significance, or for weeks in which an exempt team member takes unpaid leave under the Family and Medical Leave Act. In these circumstances, either partial day or full day deductions may be made.
It is our policy to comply with the salary basis requirements of the FLSA. Therefore, we prohibit all company managers from making any improper deductions from the salaries of exempt team members. We want team members to be aware of this policy and that the company does not allow deductions that violate the FLSA.
If you believe that an improper deduction has been made to your salary, you should immediately report this information to your direct manager or the Talent & Culture department. Reports of improper deductions will be promptly investigated. If it is determined that an improper deduction has occurred, you will be promptly reimbursed for any improper deduction made.
Related Policy: Employment Categories
Also found in the Centerspace Team Member Handbook.