Salary Basis Requirements

Salary Basis Requirements refer to rules that define how employees are compensated if they are classified as exempt from overtime pay under labor laws. Essentially, these employees must regularly receive a fixed salary that is not subject to deduction based on the quality or quantity of work performed, ensuring consistent pay regardless of hours worked. This standard helps distinguish exempt employees from non-exempt employees, who are paid hourly and eligible for overtime. Meeting the salary basis requirement is crucial for maintaining proper employment classification and compliance with wage and hour laws.