What is a Salary Test for Determining Exempt/Non-Exempt Status of Employees?

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"Salary basis" means a predetermined amount paid for each pay period on a weekly or less frequent basis, regardless of the number of days or hours worked, which amount is not subject to reduction because of variations in the quality or quantity of the work performed, and which amount has been the subject of an employer advisement as required by Section 31-71f of the Connecticut General Statutes.

 

The employee does not have to be paid for any workweek in which no work is performed. However, the employer may make deductions only in the following cases:

  1. An employer may pay during the beginning and ending weeks of employment a proportionate part of an employee’s salary for the time actually worked;
  2. An employer may make deductions for one or more full days if the employee is absent for personal reasons other than sickness or accident;
  3. An employer may make deductions for one or more full days of sickness or disability, only if the deduction is made in keeping with a bona fide plan, policy or practice of making deductions from an employee’s salary after sickness or disability leave has been exhausted, a fact which the employer has disclosed to the employee in accordance with Section 31-71f of the Connecticut General Statutes;
  4. An employer may make deductions for absences of less than one full day taken pursuant to the federal Family and Medical Leave Act, 29 USC 2601 et seq., or the Connecticut Family and Medical Leave Act, Section 31-51kk et seq., of the Connecticut General Statutes, as permitted by 29 CFR 825.206 or by Section 31-51qq-17 of the regulations of Connecticut state agencies; or
  5. An employer may make deductions for one or more full days if the employee is absent as a result of a disciplinary suspension for violating a safety rule of major significance. Safety rules of major significance include only those relating to the prevention of serious danger to the employer’s premises, or to other employees.

An employer may not make any deduction of any kind for any part of a workweek absence that is due to:

  1.  A lack of work due to the operating requirements of the employer;
  2. Jury duty, or attendance at a judicial proceeding in the capacity of a witness; or
  3. Temporary military leave.

An employer is permitted to offset payments an employee receives for any of the services described above against the regular salary the employee receives during the week of the absence.

 

An employer will not make any deduction for an absence of less than one full day from work unless:

  1. The absence is taken pursuant to the Federal Family and Medical Leave Act, 29 USC 2601 et seq., or the Connecticut Family and Medical Leave Act, Section 31-51kk et seq., of the Connecticut General Statutes, as permitted by 29 CFR 825.206 or by Section 31-51qq-17 of the regulations of Connecticut state agencies; or
  2. The absence is taken pursuant to a bona fide paid time off benefits plan that specifically authorizes the substitution or reduction from accrued benefits for the time that an employee is absent from work, provided the employee receives payment in an amount equal to his guaranteed salary.

An employer may not make a deduction of any kind for an absence of less than one week which is the result of a disciplinary suspension for violating ordinary rules of employee conduct.

A SPECIAL NOTE ON SALARY: 
Many employers are under the impression that placing any employee on salary makes them exempt. After placing an employee on salary, they fail to maintain time records on them and disregard the requirement to pay time and one-half for work over 40 hours in any workweek. In fact, salary is only one part of an exemption. If the "duties" portion of the test is not met, there can be no exemption.

 

Wage and workplace standards