206 – FAIR LABOR STANDARDS ACT (FLSA) CLASSIFICATION

There are two different classifications of employee. This classification has important impacts on benefits and other working conditions and expectations. Each position is designated as either “non-exempt” or “exempt” from the “Fair Labor Standards Act” (FLSA) which governs federal and state wage and hour laws. Employees in non-exempt positions are entitled to overtime pay under the specific provisions of federal and state laws.

 Exempt employees are excluded from specific provisions of federal and state wage and hour laws and are not entitled to overtime pay. Exempt employees are paid on a salary basis, which is intended to provide compensation for all hours worked for the Company. This salary will be established at the time of hire or when otherwise classified as an Exempt employee. While it may be subject to review and modification from time to time (such as during a salary review), the salary will be predetermined amount that will not be subject to deductions for variations in the quantity or quality of work performed. 

 However, under federal and state law, exempt salary may be subject to certain deductions. For example, salary can be reduced for the following reasons:

  • Full day absences for personal reasons

  • Full day absences for sickness or disability

  • Full day disciplinary leave for infractions of Company policies and procedures

  • Family and Medical Leave absences (either full or partial day absences) or

  • To offset amounts received as payment for jury and witness fees or military pay.

Wages and salaries may also be reduced for certain types of deductions such as benefits; state, federal or local taxes; and voluntary contributions to plans such as retirement. Exempt salaries will not be reduced for any of the following reasons:

  • Partial day absences for personal reasons, sickness or disability. 

  • Absence on a day the worksite is closed (such as due to inclement weather) on a scheduled workday.

  • Absences for jury duty, attendance as a witness, or military leave during any workweek in which work is performed.

  • Any other deductions not allowed by state and federal law.


 

@2021 The DPI Group. All Rights Reserved. Revision Dates: 02/10/2021 - The DPI policies do not form a contract, express or implied, nor do they guarantee employment for any specific length of time. Employment with The DPI Group or any subsidiary is at-will. This means that either the employee or employer can terminate the employment relationship at any time, for any reason. No statements made by any supervisor or manager can alter this at-will relationship. The at-will relationship can only be changed through a signed written agreement that specifically sets forth the terms between the employee and the President/Chief Executive Officer of the Company.