The “salary test” required for overtime exemptions provides that an employee must be paid a full weekly salary for any week in which any work is performed. However, there are certain limited deductions allowed. If an employee works any part of a day, they must also be paid in full; no salary deduction is allowed. However, deductions can be made from any vacation, PTO or sick leave balance for the hours not worked, as explained in the examples below.

  • ​​

    Preview​

    This premium content is for our members. For immediate access, join online or by phone at 800-331-8877. Or Start a Free Trial Now for 7 days.

    Already a Member? Sign In Below.

Sign In
Remember Email