Employees paid by the hour without a guarantee of a weekly minimum salary do not qualify for the salary test for white-collar workers.

Question

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According to the Fair Labor Standards Act, in order to qualify for the white-collar exemption, an employee must meet both the duties test and the salary test. The salary test requires that the employee be paid a predetermined weekly or biweekly salary that is not subject to reduction based on the quantity or quality of work performed. Employees paid by the hour without a guarantee of a minimum salary do not meet this requirement, and therefore do not qualify for the white-collar exemption.

Employees Paid by the Hour Without a Guarantee of a Weekly