Employers covered by the Fair Labor Standards Act (FLSA) seeking to address the circumstances under which employees classified by the employer as nonexempt will receive overtime pay should consider including this model policy statement in their handbook.
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.
This guide helps multistate employers understand their compliance obligations under state laws covering hiring, termination, handbooks, discrimination, wages and hours, employee privacy, health and safety, leaves of absence, health care benefits and more.
HR guidance on complying with federal and state employee overtime laws. Support on following rules and regulations regarding this employment law topic.