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Exempt Salary

LakesHRLakesHR 2 Posts
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Please help! I have an Exempt employee (a Tennis Pro) who meets the job qualifications to be exempt; however, he is currently making less than $455/ monthly as his base salary. He does however, make monthly commissions which put him well over $455/ month. Is this okay? Or does his base salary need to be $455/ monthly? He is not guaranteed commissions, however, he has never missed one in the 2 years he's been here.
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  • 4 Comments sorted by Votes Date Added
  • HRQHRQ 2,849 Posts
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    My understanding is the BASE salary must exceed $455. Commissions/bonus/incentive whatever do not count toward base. I asked this specific question at a Wage & Hour seminar that focused on the changing regs.
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  • POPEYEPOPEYE 958 Posts
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    That is how it was explained at a seminar I attended as well.
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  • LakesHRLakesHR 2 Posts
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    Thank y'all so much for replying, you've been most helpful!
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  • pork1pork1 1,054 Posts
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    LAKESHR: The first criteria is $455.00 base, if the ee does not get that amount the written words used to identify what the individual would be doing in order to qualify for EXEMTP status would not apply; therefore, the individual must be classified as NON-EXEMPT and paid, accordingly with a hourly rate plus overtime and bonuses. If the bonus is perdictable, then it also must be counted as part of the base rate of pay before calculating the O/T rate for all hours worked over 40 hours per week.

    It would appear to me that your Tennis Pro should be salaried at a greater rate than $455.00 per hour, otherwise, his voluntary time spent having fun and teaching tennis to all members must also be counted as working time.

    Pork
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