If an exempt employee requests a move from full-time to part-time status, can the employer adjust the individual's salary down to compensate for the reduced hours?
Yes, the salary can be reduced if the position still meets all the conditions for the particular exemption, including being paid the minimum weekly salary, and the change is a one-time reduction in weekly salary that is made upon the conversion to part-time status. The part-time exempt employee must still receive their full weekly salary, which is not subject to reductions because of the quantity or quality of the work. In other words, the part-time exempt employee's pay may not fluctuate from week to week. The FLSA allows reductions in employees' salaries as long as the reductions are not designed to circumvent the salary basis requirement. When an employee is paid less than the minimum salary requirement, his or her position does not meet the FLSA white collar exemption requirements. In such a case, the employee would be paid as a non-exempt employee.
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