A new Department of Labor opinion letter clarifies the tricky matter of paying exempt employees a salary that may sometimes fluctuate. The problem: Does the Fair Labor Standards Act allow an employee to be considered exempt if they are paid a salary that is computed on an hourly, daily or per-shift basis? Under the FLSA, that is not a problem if two conditions apply:
The employee is guaranteed a minimum weekly salary regardless of the number of hours, days or shifts worked.
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"...