What counts as salary? 04-02-03
I am a computer professional but not highly compensated, so I'm not sure if I meet the "salary basis" test for whether I am exempt or non-exempt. What counts as salary? Do I need to include an annual bonus that's not always paid, and taxable benefits my employer lists on my check stub and withholds tax for? My employer says they're not obligated to pay for voluntary additional time. However, schedule pressure is constant, and several guys who didn't put in extra time were laid off.
Rita Risser replies:
"Salary" is what you get every paycheck, $X per month. One of the definitions of salary is that it is the same amount week in, week out. Withholdings are included in salary. If you are non-exempt, there is no such thing as "voluntary additional time." Even if you wanted to volunteer your time, if the company "suffers or permits" you to work, they have to pay you for it. If you are non-exempt, it is a very wrongful termination if you are fired for refusing to work unpaid overtime.
On the other hand, if you are exempt, the employer can require you to work overtime, unpaid, and lay you off if you refuse. It's not fair, but that's the law.
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