DOL: How to pay exempt workers a variable salary.

• Position: In The News...

A new Department of Labor opinion letter clarifies the tricky matter of paying exempt employees a salary that may fluctuate. The problem: Does the Fair Labor Standards Act allow employees to be considered exempt if they are paid a salary that is computed on an hourly, daily or per-shift basis? That isn't a problem if two conditions apply:

1. The employee is guaranteed a minimum weekly salary regardless of the number of hours, days or shifts worked.

2. There is a reasonable relationship between the guaranteed amount and the amount actually earned.

The question answered by the new opinion letter: What is the definition of a "reasonable" relationship? The...