Minimum wage only the final week?

Jayhawk · June 2004

A few weeks ago I posted a message regarding an employee at our company who was on salary and gave her resignation with no notice on a Friday morning. I was informed by a few readers that, even though she was a salaried employee, according to the FLSA, we could pay her on an hourly basis for the proportionate amount of time that she worked that final week.

When I contacted the FLSA, they agreed and also said that we could pay her only minimum wage for those hours as well, instead of what her normal salary would be when broken down into hours. I have found the section that allows for the hourly pay (541.118)but not any language saying we can do it at minimum wage. Does anyone have this information for me? Thanks.

cthr · June 2004

I am not aware of any regulation that allows you to pay only minimum wage their last week. I would think that the person would have some type of claim if thier normal salary broken down came out to $30/hour and you only paid them the minimum wage.

Don D · June 2004

I tend to disagree with what she told you. If that's true I've never seen it in print or heard it in a seminar. What she should have said, in my opinion, is, "We don't care what you pay them for that week, and you may dock them for portions of the final week not worked, as long as you pay them at least minimum wage for any hours worked." That's not the same as telling you that it's OK to reduce them to minimum wage the final week.

Someone correct me if I'm wrong. x:-)

kjsnyder · June 2004

Since the employer can set the compensation, the employer can change the person's rate of pay. However, regulations address that you would have to inform the person prior to the work being performed that this was the case. So, if you had a policy that stated that any employee who did not give proper notice would only be paid at minimum wage, I think that this would work.

Minimum wage only the final week?

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