Question

Your team members are all classified as exempt in their job roles. Which of the following could result in the loss of the exemption status? Select all that apply.

1) Dock team members for taking partial days off
2) Ensure the team members do not work more than 40 hours per week
3) Offer 'comp' time for hours over 40

Answer 1

Docking pay for partial days off could result in the loss of exempt status for a team member, as it violates the salary basis requirement. Ensuring employees do not exceed 40 hours per week does not affect exemption, and offering 'comp' time for exempt employees could potentially violate FLSA rules.

Step-by-step explanation:

The exempt status of a team member can be lost if their employer does not adhere to certain regulations. Specifically, exempt employees typically cannot have their pay docked for taking partial days off, as this would violate the salary basis requirement for exemption. Therefore, option 1, docking team members for taking partial days off, could result in the loss of the exemption status.

Concerning option 2, ensuring team members do not work more than 40 hours per week, this would not affect the exemption status as exempt employees are paid a salary for any amount of hours worked, and the Fair Labor Standards Act (FLSA) does not limit the number of hours an employee may work in any workweek. As for option 3, offering 'comp' time for hours over 40 for exempt employees is not standard practice and could potentially violate the FLSA, as exempt employees are compensated with a salary regardless of the number of hours worked and are not typically eligible for overtime or 'comp' time.