Table of Contents:
- New Jersey Labor Laws About Salaried Employees
- Kentucky Labor Laws for Salaried Employees
- Labor Laws for Salaried Emloyees in Arizona
- What Are the Labor Laws in Tennessee for Salaried Employees?
- Michigan Labor Laws for Salaried Employees
- The State Labor Laws in Massachusetts for Salaried Employees
- Virginia Salaried Labor Laws
- California Labor Laws for Salaried and Exempt Employees
- Pennsylvania Labor Laws for Salaried Employees
- Iowa Labor Laws for Salaried Employees
- Laws for Salaried Employees in South Dakota
- Ohio Wage & Labor Laws for Salaried Employees
When categorizing salaried employees as exempt or nonexempt, employers in New Jersey adhere to federal law. State regulations apply to salary situations involving certain overtime practices and time off from work.
Salaried executive, administrative and professional employees, as defined by the Fair Labor Standards Act, are exempt from overtime in New Jersey and must receive no less than weekly salary of $455 as of this publication in 2015.
Salaried employees who are not excluded from overtime are nonexempt and must receive no less than the state minimum wage of $8.38 per hour as of this publication.
Salaried employees in executive or supervisory roles must be paid at least once per month. Salary for other employees are typically due at least semimonthly.
Under New Jersey law, salaried nonexempt employees must receive overtime at 1 1/2 times their regular pay rate for more than 40 work hours in a week. With the exception of certain restrictions for health care employers, employers in New Jersey can make overtime mandatory provided they pay for all hours worked.
The fluctuating method of calculating overtime is sometimes used when a salaried nonexempt employee's hours change from week to week. The employee and employer agree the employee will receive a fixed salary each week to cover all hours worked, plus overtime at 1/2 times the regular rate. This practice is acceptable under the FLSA, provided certain conditions are met. New Jersey employers are allowed to use the fluctuating workweek method.
Salary During Emergency Closings
Salaried exempt employees are not paid according to hours worked. They must get a full day's pay for partial days taken, and full salary for weeks in which they perform any work. For example, if the employer closes the business because of inclement weather for less than a week, salaried exempt employees must receive a full week's salary if they performed any work at all during the week.
Nonexempt salaried employees are paid based on hours worked and do not have to be paid for days in which they do no work. The employer can instead have them take a vacation day if the business closes due to inclement weather.
Employers in New Jersey cannot offer compensatory time, or paid time off, for overtime hours worked, even during emergency closings. In general, overtime wages must be paid if the employee works more than 40 hours per week.
New Jersey law does not require that employers provide fringe benefits, such as vacation, sick or personal time off or severance and holiday pay. Employers that choose to provide these benefits must adhere to the terms of the agreement or policy. New Jersey has a Family and Medical Leave Act that allows qualified employees to take up to 12 weeks of job-protected leave if they have a qualifying condition, such as to care for their newborn.
According to the website of Dash Farrow, a law firm in New Jersey, wrongful termination laws in New Jersey cover discrimination, workers' compensation, whistleblower and family leave. An employee who believes she was unfairly dismissed because she complained about her salary or wages may file a complaint with the New Jersey Department of Labor and Workforce Development, Wage and Hour Compliance. If the issue is related to discrimination, the employee may contact the New Jersey Division on Civil Rights, which also handles complaints pertaining to family leave.
An employee may file a private lawsuit against her employer for wrongful termination, provided she hasn't already filed a claim with the state department. She might be entitled to back pay, punitive damages and attorney fees.
Both Kentucky Revised Statutes and Kentucky Administrative Regulations contain rules about workers' rights. The statutes are officially abbreviated as KRS if from the revised statutes and KAR if from the administrative regulations. Although Kentucky labor laws make few distinctions between the rights of salaried employees and those of hourly workers, the state does have regulations on the books concerning overtime pay, work schedules of salaried employees and on-call time, among other aspects of work life.
Kentucky Overtime Regulations
Typically, salaried employees are not eligible for overtime pay. Employees are considered "on salary" if they are paid a minimum amount each pay period regardless of the number of hours worked. If you are switched from an hourly position to a salaried one, this does not always mean you do not qualify for overtime pay; as the Kentucky Labor Cabinet notes, some salaried employees are eligible for overtime pay if the base salary does not equal minimum wages considering the hours worked.
Pursuant to 803 KAR 1:060, employers can require salaried employees to work different schedules from week to week for a fixed salary as long as in the longest workweeks the hourly compensation works out to be minimum wage or greater. If a salaried employee works 30 hours one week and 70 hours the next, compensation for the 70-hour week must be $507.50 or more. This is because Kentucky's minimum wage is the same as the federal minimum, and 70 hours multiplied by $7.25 equals $507.50.
Under Kentucky law, employers compute overtime for salaried employees by dividing the number of hours normally worked into weekly salary to get the hourly rate. When overtime pay is due, this rate is then used to figure time and a half. Kentucky labor laws allow employers to exclude vacation, holiday and sick pay from total salary when figuring the hourly rate.
Comp Time in Lieu of Pay
Employers cannot force an employee who is eligible for overtime pay to take compensation time off work instead of overtime pay. However, according to KRS 337.285, county and municipal employees have the right to ask for compensating time instead of overtime pay by submitting the request in writing to employers.
Kentucky's seventh-day overtime law is distinct from the state's minimum wage statutes. This particular law requires the employer to pay time and a half for a seventh day of work in one workweek provided the employee has been allowed to work a 40-hour week. However, KRS 337.050 excludes employees whose primary job responsibility is in a supervisory role over other employees. Often supervisory jobs are held by salaried employees and thus are excluded from the seventh-day benefit.
Kentucky labor laws regarding on-call time follow federal regulations. According to 803 KAR 1:065, employees who must remain at the work location while on call are considered to be working and must be paid accordingly. An employee on call who must simply provide contact information about where she can be reached is not considered working. Federal guidelines state that if the employee is hampered from engaging in personal activities, such as through excess phone calls or interruptions, the employee is considered to be working.
In situations where Kentucky does not have laws on the books covering employee rights, federal law prevails. If both state and federal laws apply to a specific situation, the provision that best protects employee rights takes precedence.
In Arizona, all salaried employees must be paid a minimum wage of $7.25 per hour, the same as the federal minimum. Additionally, under Arizona law, minors and salaried employees undergoing training cannot be compensated at a lower wage, with one exception: an employer can give a $3.00 tip credit to employees working for tips, such as those in the waitstaff industry. However, employees working for tips must make at least $4.25 per hour. Additionally, employers are obligated to pay salaried employees for all hours worked, unless they qualify as exempt from overtime.
Under Arizona state law and federal law, all salaried employees are entitled to overtime, which is equal to one and a half times the employees' regular hourly rate, with some exceptions. Salaried employees who are not primarily employed in a manual labor capacity, such as managers, administrators, executives and other professionals, and who also earn at least $455 per week on salary may be exempt from state and federal overtime requirements.
Arizona law requires that all employers designate two recurring days each month that salaried employees will be paid. There can be no more than 16 days between paydays. Additionally, if a payday falls on a holiday, employers must pay on that day or beforehand. Employers are also required to pay all wages owed to employees for each pay period.
Nonexempt employees in Tennessee are entitled to overtime pay, rest breaks and compensation for most on-call time. However, certain salaried employees are exempt from rules regarding overtime and rest breaks. Although exempt employees aren't entitled to extra pay for additional hours, they are entitled to a regular salary.
Tenneesee's Department of Labor and Workforce Development explicitly notes that the state doesn't have any laws on the regulation of exempt salaried employees. Instead, employers must defer to the standards under the federal Fair Labor Standards Act. To be classified as exempt, an employee must meet these three requirements:
- The employee must be paid a regular salary of at least $455 per week.
- The employee's job must fall into one of the categories that's eligible for an exemption. Executives, administrators, professionals, sales workers and computer employees may be classified as exempt.
- The employee must meet any specific job duty criteria mandated by the Act. Exact requirements vary depending on job category. As a general rule, employees must have some degree of creativity, authority or independent judgement in their role.
Salaried Exempt Employees
Exempt employees in Tennessee aren't paid based on the number of hours they work. Rather, they are paid a consistent salary to get the job done. That means an exempt employee will be paid the same salary whether he works 30 hours a week or 70 hours in a week. If an employee is classified as exempt, he's not entitled to overtime rates of pay or additional compensation for on-call hours. On the other hand, employers can't dock an exempt employee's pay if he works a short day, a half day or less hours than usual during the week.
Salaried Nonexempt Employees
It's worth noting that some employees may be paid on a salaried basis but don't qualify as exempt. These employees are entitled to overtime of time-and-a-half for hours worked in excess of 40 in a week. Nonexempt employees also may be entitled to payment for on-call hours. Whether or not a Tennessee employer has to pay for on-call time depends on whether or not the employee's freedom is constrained when he's on call. For example, if an employer requires the employee to stay within 50 miles of work on his day off in case he needs him to come in, his freedom is constrained and the time must be compensated at his normal rate of pay, or at time-and-a-half if he's already worked 40 hours during the week.
An executive employees’ main job duty must be to manage a specific department or division of a business. Executives have to direct at least two or more full-time workers and have the ability to hire and fire other workers. Executives must also have authority to promote or demote workers. If an employee owns at least 20 percent of the business they are working in, that person is considered an executive.
Administrative employees are those who engage in non-manual work in an office setting. Duties must relate directly to the general operation of the company or its customers. People in administrative positions must routinely make arbitrary decisions that are of great importance to the business. Administrative professionals in the area of education are classified as salaried employees if they oversee standards such as grading, creation of a curriculum, and supervise the operation of a school.
The law views a professional employee in two general categories: a learned professional or a creative professional. Learned professionals must perform work that is mostly intellectual and have excellent knowledge in the areas of science or learning gained through an extended course of higher education. In most cases, an employee with a degree is considered a learned professional.
A creative professional uses their imagination or talent to perform a job that is artistic or creative in nature. Work must be in a recognized field such as writing, acting, music or graphic arts. Occupations that do not require an employee to apply their own unique style to a piece of work, such as journalist who only gathers information that is already available to the public, are not considered a creative professional.
Employees, who take sales orders, or write contract agreements promising a product or service from a business, are viewed as outside sales people provided they normally do their work away from the company office or other facility. The minimum salary requirement does not apply to outside sales workers. Sales made over the Internet, phone or by mail are usually not considered outside sales unless the contact is made to set up a personal sales call. Workers acting as drivers to deliver goods are seen as outside sales people only if their main duty is making sales instead of simply delivering a product.
People working as computer systems analysts, programmers, software specialists or other commonly skilled computer fields may be paid the weekly FLSA minimum salary amount, or may be compensated no less than $27.63 per hour of work. Employees involved in manufacturing or repairing computers are not recognized as salaried workers under the law.
Most salaried employees must receive a standard hourly wage in Massachusetts. The minimum wage for these salaried employees in Massachusetts is $8 an hour, or $320 a week, as of April 2011. Certain salaried workers who are exempt from receiving overtime pay must receive at least $455 a week, according to Fair Labor Standards Act laws. Exempt salaried employees are paid a standard weekly, monthly or annual wage. They generally earn higher wages than other workers and are classified as executives and senior professionals at organizations.
After most employees work more than 40 hours during a week, the law requires that they must receive overtime pay. In Massachusetts, the overtime pay rate is equal to 1 1/2 times an employee's standard hourly wages. Therefore, an employee with an hourly wage of $50 must receive $75 an hour for all time they work above 40 hours in a week. Massachusetts does not require employers to pay employees overtime based on the number of hours they work in a day. To figure salaried employees' standard hourly wages, employers must divide employees' standard weekly gross wages by the number of hours employees are regularly scheduled to work. For example, employees with weekly gross wages of $1,400 who work 40 hours a week will have standard hourly wages equal to $35. These workers must receive $52.50 an hour for all overtime they work.
Executives, administrative professionals and outdoor salespersons who earn commissions are types of salaried employees who are exempt from receiving overtime pay in Massachusetts. These employees make independent decisions that impact an organization's finances, workforce, products or services. Examples of administrative professional jobs are chief administrative officers, human resource directors and chief operation officers.
After salaried employees resign or are laid off from their jobs, whether or not they are exempt, they must receive their final paycheck within six days of the pay period their final wages were earned in. If salaried employees work less than five days at an organization before they are laid off, they must receive all wages they are due within seven days of their last work day. Employers must pay salaried employees who resign and who only work five or less days at the organization on the next pay cycle.
Virginia Labor Laws
Virginia labor laws do not require employers to supply employees with paid vacation or sick leave. However, the state does require that employers pay overtime to nonexempt employees and offer periodic breaks to some minors. Virginia defers to the Fair Labor Standards Act requirements for overtime, which mandate that an employee be paid at time-and-a-half for any hours worked in excess of 40 a week. Additionally, Virginia requires that employees provide a 30 minute lunch break and a 15 minute rest break to employees younger than 16 years old who work a shift longer than 5 hours.
Salaried, exempt employees in Virginia are not covered by regulations regarding overtime laws. Virginia again defers to the Fair Labor Standards Act, which offers exemptions for five types of employees: executives, administrators, professionals, outside salespersons, farmworkers and computer professional. Professionals include creative professionals like artists or musicians. The category also includes learned professionals like lawyers, accountants, scientists, architects and doctors. Teaching professionals, including K-12 teachers and professors, also may be exempt.
Requirements to be Exempt
Just because an employee's title falls into a certain category doesn't mean that he's automatically exempt. Exempt employees must be paid at least $455 per week. They also must be paid a salary rather than being compensated on an hourly basis. The salary must be predetermined, fixed and not subject to fluctuations based the amount of work performed. That means that an exempt, salaried professional must be paid the same weekly salary whether he works 20 hours or 60 hours in any given week.
Docking Salaried Employee Pay
As a general rule, an employer cannot dock a salaried employee's pay. As long as the employee does some work, even ten minutes worth, he must be paid for that day. However, there's a few scenarios in which the Fair Labor Standards Act allows a Virginia employer to reduce pay. If the employee doesn't perform any work for an entire week or is absent for an entire day for a reason other than sickness or an accident, his employer may dock his pay. An employer also may dock pay as a penalty for breaking important work rules or committing safety violations.
Minimum Wage and Overtime
Under California law, all employees must be paid a minimum rate of $8 per hour, which is higher than the federal $7.25 per hour standard. Additionally, California law requires employers to pay overtime, equivalent to one and a half times the employee's regular rate, for any hours worked beyond 40 hours in one week. Employees who work for more than eight hours in a single day are also entitled to overtime in California. Employees who work more than 12 hours in one day are entitled to double-time.
Highly remunerated employees in California who receive a salary may be exempt from the state-mandated overtime requirements. For example, individuals employed as executives or managers, that work in an administrative or professional capacity or are outside sales personnel, are exempt from overtime pay as long as their salary is $455 per week or greater. Additionally, employees in the computer software field that are paid hourly and make at least $455 per week are also exempt from overtime.
Employees who work in a family business, owned and operated by a parent, spouse or child, are also exempt from California's overtime requirements. Drivers may also be exempt from overtime depending on their position. For example, drivers governed by the U.S. Dept. of Transportation Code of Federal Regulation and Title 13 of the California Code of Regulations are exempt from California's overtime requirements.
All salaried employees in the state of Pennsylvania are entitled to wages equal to those of workers within the same field and company of employment performing the same function. The equal wage law exists to prohibit employer discrimination on the basis of race, ethnicity, gender, sex or orientation. If an employer is found to have violated this law, a state fine will be levied and all wages withheld from the employee or employees in question will be paid.
Prohibition of Excessive Overtime in Health Care Act
Pennsylvania’s Prohibition of Excessive Overtime in Health Care Act prevents health care facilities such as hospitals from requiring excessive overtime work from salaried and non-salaried employees who are in direct and frequent contact with patients. The law was enacted in order to insure optimal care for patients and to protect doctors and nurses from becoming overtired and making potentially dangerous mistakes. The law does not prohibit employees from working shifts over eight hours if the schedule is mutually agreed upon, and does not extend to on-call workers.
The state of Pennsylvania has a Worker’s Compensation Act that protects the rights of salaried, and non-salaried, employees. Provisions of this act require employers to maintain and healthy and safe work environment. Employers are required to pay for the medical costs and leave of employees who are unable to work due to a workplace injury resultant of negligence or poor, outdated facilities or safety standards. As stipulated by the Act, workers seeking compensation must file with the state to receive compensatory benefits.
A nonexempt employee is one that isn't exempt from overtime regulations. Iowa defers to the federal Fair Labor Standard Act's regulation on overtime, which mandates that employees receive time and a half for hours worked over 40 in one week. Nonexempt adult employees in Iowa aren't entitled to any rest or meal breaks, but they must be paid at least the state minimum wage; in Iowa, the minimum wage is $7.50 an hour at the time of publication, but an employer is allowed to pay $6.75 an hour during the first 90 days of employment.
Exempt Salaried Employees
Exempt salaried employees don't need to be paid an overtime rate. Iowa allows an overtime exemption for employees who can be classified as exempt from the Fair Labor Standards Act, or FLSA. To be exempt, an employee must be classified as an executive, administrator, professional, salesperson or computer employee. Exempt employees must exercise some independent judgment or decision making in their work and must be paid a minimum salary of $455 a week.
Termination and Layoff Notice
Employment in Iowa is "at will." That means that either the employee or the employer can terminate the employment at any time. The Iowa Workforce Development Department notes that employers are not required to give salaried or hourly employees notice before they terminate them. However, the federal Worker Adjustment and Retraining Act requires that employers in Iowa, as elsewhere in the United States, give at least 60 days' notice of mass layoffs.
Iowa law does stipulate that an employer can terminate a salaried employee for any reason. However, the employee may have recourse for wrongful termination. If an employee is terminated for discriminatory reasons -- for example, based on her age, religion, pregnancy or race, among other things -- she can bring legal action against an employer. She also has grounds for legal action if she's fired for whistleblowing or trying to comply with safety regulations or if she was guaranteed employment in a legal contract.
Minimum Wage and Salary
If a South Dakota employer chooses to pay an employee by the hour, the salary must be calculated according to the number of hours per week the employee typically works. A standard workweek consists of 40 hours per week, so an employer's salary must break down to at least $7.25 an hour for each hour worked if the salaried employee typically works 40 hours or less.
If a South Dakota employer regularly expects a salaried employee to work more than 40 hours a week, the salary must factor in overtime pay for hours worked in addition to 40 hours per week. Overtime is 1-1/2 times the employee's regular hourly rate. Under federal law, neither the employer nor the employee may waive overtime rates.
Overtime Exemptions Under the FLSA
Employers do not have to pay overtime to "white collar" employees who fall under certain categories and meet certain criteria. Those who work in executive, administrative, professional or outside sales positions or are certain types of computer experts may not qualify for overtime pay. In order to be exempt, an employee generally must make at least $455 a week on a salary basis. Highly compensated employees who earn a salary of $100,000 a year or more may also be exempt from overtime.
Most salaried employees are covered under South Dakota's unemployment insurance laws, meaning they may draw unemployment pay if they are laid off. Exceptions include work-study students, elected officials and those working for elections, employees of religious organizations and railroad employees. Small businesses, typically agricultural businesses that only employ a few workers on a seasonal basis, are normally exempt from unemployment insurance requirements.
The state of Ohio recognizes the same exemptions to overtime and minimum wage laws as the federal government. Under federal statutes, certain employees, such as managers, professionals and administrators, may be classified as exempt employees. These employees must receive a salary equivalent to $455 per week that does not fluctuate if the employee's output varies. Although the employee may receive additional compensation, such as commissions or bonuses, at least $455 must be in the form of a fixed salary. The employer may withhold the salary for any week during which an exempt employee does not work, but as a rule, if the employee works at any time during the week, he is entitled to his full salary. Federal laws allow few deductions from an exempt employee's salary, but the employer may adjust pay for personal absences of at least one full day. Absences of less than one full day should not be deducted.
A nonexempt employee is one who must receive overtime pay if he works more than 40 hours in one week. Neither Ohio nor federal law prohibits an employer from paying a nonexempt employee on a salary rather than hourly basis. However, federal laws require the employer to pay a salary that equates to at least the applicable minimum hourly rate. Furthermore, when computing the hourly rate to use for overtime pay, the hourly rate cannot be less than the minimum wage. Unlike hourly employees who have a fixed hourly rate, the hourly rate for a nonexempt employee is his salary divided by the number of hours worked during the week. For example, if an employee receives $300 weekly for 40 hours, his hourly rate is $7.50. This exceeds both the federal minimum wage--$7.25 as of 2011--and the Ohio minimum wage, which was $7.40 as of 2011. However, if he worked 50 hours, his hourly rate would be $6, which does not meet the requirements. Therefore, the employer would have to base his overtime for the week on a base of $7.40, yielding an overtime rate of $11.10.
Frequency of Pay
Ohio requires employers to issue paychecks at least twice per month, no later than the 15th and 30th of the month. Employers may pay more frequently if they so desire. This applies to both exempt and nonexempt employees, as well as hourly, commissioned and piecework employees. It does not matter whether the employee is full- or part-time.
Neither federal nor Ohio statutes require employers to offer coffee breaks, lunch breaks or other rest periods to employees over the age of 16. However, federal law requires employers to pay for breaks of less than 20 minutes, and if the employee is not relieved of all duties during his lunch break, employers must pay for that time as well.