questionQ: Can I pay exempt employees extra without jeopardizing their exempt status?

A: An exempt employee may be provided extra pay for extra work without violating the requirements of the salary basis regulation. According to the Department of Labor, it is acceptable to track the time of exempt employees for the purposes of attendance, discipline and other matters such as billing. However, the more an employer tracks an exempt employee’s hours, the greater the risk of scrutiny regarding exempt status. For that reason, employers that want to reward the extra efforts of their exempt employees often allow special considerations such as a monetary bonus.

Contact your HR Consultant for more information regarding FSLA status and requirements, or if you want to discuss implementing monetary bonuses or alternative options, to recognize and reward employees’ efforts.