Many employers understand that only salaried employees are exempt from minimum wage and overtime requirements. There is, however, understandable confusion (not to mention operational difficulties) surrounding the permissible deductions from exempt employees’ pay. As one example among many, employers generally cannot deduct exempt employees’ pay for absences due to illness or disability, except where the deduction is taken under a bona fide benefits plan.
Improper deductions may result in costly losses of the “exempt” employee status. As one example, in 2019, an employer paid $16.5 million in back pay based on the loss of the exempt employee status. Watch the video and read more below…
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Hall Benefits Law, LLC
HBL offers employers comprehensive legal guidance on benefits in mergers and acquisitions, Employee Stock Ownership Plans (ESOPs), executive compensation, health and welfare benefits, healthcare reform, and retirement plans. We counsel a wide spectrum of clients including small, mid-sized, and large companies, 401(k) investment advisors, health insurance brokers, accountants, attorneys, and HR consultants, just to name a few. HBL is passionate about advising clients, and we are dedicated to our mission: to provide comprehensive, personalized, and practical ERISA and benefits legal solutions that exceed client expectations.
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The following two tabs change content below.
Hall Benefits Law, LLC
HBL offers employers comprehensive legal guidance on benefits in mergers and acquisitions, Employee Stock Ownership Plans (ESOPs), executive compensation, health and welfare benefits, healthcare reform, and retirement plans. We counsel a wide spectrum of clients including small, mid-sized, and large companies, 401(k) investment advisors, health insurance brokers, accountants, attorneys, and HR consultants, just to name a few. HBL is passionate about advising clients, and we are dedicated to our mission: to provide comprehensive, personalized, and practical ERISA and benefits legal solutions that exceed client expectations.
