Compensation Requirements

Extra Pay

An employer may provide an exempt employee with additional compensation without violating the salary basis requirement if the employment arrangement also includes a guarantee of at least the minimum required salary of $455 per week. For example, an exempt employee may be paid the minimum required salary plus additional compensation for working beyond the normal workweek. Such additional compensation may be made in any of the following forms:

• commission on sales
• percentage of sales or profits
• flat sum
• bonus payment
• paid time off
• straight-time hourly pay
• time and one-half pay
• any other basis

To qualify for exemption, employees generally must meet certain tests regarding their job duties and meet certain compensation requirements. Job titles do not determine exempt status. You should also review the other sections of this Advisor for help in determining whether the employee meets the duties tests for exemption.

Compensation Requirements

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