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Quick Quiz: FLSA "Salary Basis" of Pay

Robin is in charge of the 50-employee Shipping Department at Furniture World.  She is treated as an exempt "executive" employee under the federal Fair Labor Standards Act, including that she is paid a salary of $950 per week.  Furniture World adopts a policy that all supervisory employees:

♦   Are required to keep accurate records of their worktime,

♦   Must work at least 50 hours a week, and

♦   Must make the time up in a later week if they work less than 50 hours in a week.

The supervisors are subject to discipline or discharge if they fail to work at least 50 hours in a week and do not make up the time.

A month after the policy is implemented, Robin has a car problem one morning on the way in and ends up working only 46½ hours for the week.  Angrily telling her boss that she has a right to a personal life, Robin refuses to work extra time in a later week to make up the 3½ hours.

Does Furniture World's policy destroy the FLSA "salary basis" of pay required as part of Robin's exempt status?

[Editor's Note:  Click here for the answer.]

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