The US Department of Labor (DOL) provides employers the Model Salary Basis Policy for Exempt White-Collar Workers as an example of a salary basis policy that will meet the requirements of the "safe harbor" provision of the Fair Labor Standards Act (FLSA). Under the "safe harbor" provision, employers that inadvertently make improper deductions from the pay of exempt employees can shield themselves from overtime liability if they adopt a salary basis policy and take other steps.
Updated to reflect the overtime and recordkeeping exemption for employees of seasonal amusement and recreational establishments, effective January 1, 2018.
Use this flowchart to determine if an employee is exempt or nonexempt from the minimum wage or overtime requirements of the Fair Labor Standards Act (FLSA).
This Quick Reference chart addresses some of the most common scenarios for determining whether employees need to be paid under the Fair Labor Standards Act (FLSA) when employers close down their workplaces or when employees are unable or unwilling to work because of a snowstorm, hurricane or other natural disaster.