new exempt ee

lrobb · January 2007

new ee started 12/1 not eligible for holiday pay until after 90 days. We were closed both Christmas and New Years. does the ee get paid for 4 days those weeks or 5.

Peyton Irby MS · January 2007

The exempt employee would be entitled to the full week's salary. A holiday is not a circumstance that allows non-payment to exempt employees for a day's absence.

Peyton Irby
Editor, Mississippi Employment Law Letter
Watkins Ludlam Winter & Stennis, P.A.
(601) 949-4810
[email]pirby@watkinsludlam.com[/email]

Dutch2 · January 2007

Just curious... "What if" they had listed the first day of employment as 1-02 and not 1-01, New Years Day. I assume the new exempt ee would not be eligible for holiday pay if this had been the case and could then be paid for four days without any confusion.

Peyton Irby MS · January 2007

Dutch: Interesting point. My guess is it would be the same answer since the employee worked within the workweek, although I believe you would need a DOL opinion letter to be safe in not paying for that day.
Peyton Irby
Editor, Mississippi Employment Law Letter
Watkins Ludlam Winter & Stennis, P.A.
(601) 949-4810
[email]pirby@watkinsludlam.com[/email]

AnneHa · January 2007

My understanding is that exempt ees can be paid less than a full week's salary in the first and/or final weeks of employment. Dutch would be correct in paying four days during the week 1/01-1/05.

Anne in Ohio

lrobb · January 2007

Thank you all.

Dutch2 · January 2007

I sure hope he is, 'casue that is exactly what he has been doing...
Dutch2

Orlaw · January 2007

Anne has it exactly right under the FLSA. For reference, here's a link to DOL's blurb about initial and terminal week deductions not adversely affecting exempt status:
[url]www.dol.gov/esa/regs/compliance/whd/fairpay/fs17g_salary.htm[/url]

You might want to also review Miss. state law to ensure it doesn't vary from the federal law (I don't think it does, but it's always nice to have some certainty on these sorts of black and white matters).

System · January 2007

Except, if I read the initial post right, the employee started on DECEMBER 1, not January 1. So 1/1 - 1/5 is not an initial week of an employment, as the employee had been employed for a month by then.

AnneHa · January 2007

If the ee is exempt then s/he should be paid for a full week including the holidays. If non-exempt, then no holiday pay is necessary for the twp holidays.

Anne in Ohio

new exempt ee

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