Employer's Guide to the Fair Labor Standards Act recently published "Salary Basis Basics: the Current Test" by Shlomo Katz, a member of the Brown Rudnick Litigation Department. The article discusses the "salary basis" test, which determines whether an employee is entitled to overtime pay, and President Obama's plans to change the test.
From the Article
"In addition to suspensions in full-day increments for violations of workplace conduct rules, employers may make disciplinary deductions from the pay of an exempt employee on any basis (for example, by the day or even part of a day) for violations of safety rules of major significance. And, an employer can make deductions for full-workweek suspensions, regardless of the reason. But these rules don't cover all situations in which an employer might wish to discipline an employee. What other actions, then, can an employer take without violating the salary test?"
Read the full article here.