Exempt Employee Contract Terms

Summary

In Pennsylvania, exempt employees must be paid on a salary basis and meet specific job duties criteria. Employers can require a minimum of 40 hours per week in the contract for full salary. Deductions for partial-day absences are not allowed, but full-day deductions for personal reasons are permissible. Hourly employees are generally not exempt from overtime, with some exceptions in specific industries. Employers can change employee status from hourly to salaried, but not frequently or based on performance. Commissions and bonuses can be withheld if performance criteria are not met, provided its stated in the contract. Employees must sign updated contracts for changes to take effect.

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Specific contractual terms. Also, this is in PA.
Thank you for clarifying. In Pennsylvania, for exempt employees under the Fair Labor Standards Act (FLSA):
- They must be paid on a salary basis.
- They must meet job duties criteria for exemptions (executive, administrative, professional).
- Employers can set a minimum number of hours in the employment contract.
Is there a specific term you need more details on?
Can that employer put in a contract, that the employees will sign, for the employees to work a minimum of * hours per week to receive full salaried amount for each pay period which is bi-weekly
Yes, an employer in Pennsylvania can include a contract term requiring exempt employees to work a minimum of * hours per week to receive their full salary. However, they must:
- Ensure the employee meets the FLSA exemption criteria.
- Pay on a salary basis regardless of hours worked in short workweeks.
Is there another specific aspect of the contract you need clarification on?
If an employee leaves work early to go camping, which would close the store early as they are the only ones who operate that location, can the employer deduct pay from salaried employees if they do not work the minimum hours for the week?
In Pennsylvania, for exempt employees under the FLSA:
- Employers generally cannot deduct pay for partial-day absences.
- Full-day deductions are allowed if the employee is absent for personal reasons.
- Ensure deductions comply with the FLSA criteria.
Would you like more details on permissible deductions?
How can the employer deduct pay for partial-day absences?
In Pennsylvania, for exempt employees under the FLSA:
- Employers generally cannot deduct pay for partial-day absences.
- Deductions for full-day absences are permissible if the absence is for personal reasons.
- Employers can require employees to use vacation or sick leave for partial-day absences.
Would you need more information on how to manage sick leave or vacation policies?
The employer does not give vacation/sick days. Would there be exceptions to deduct pay for partial-day absences? The absences are for personal reasons.
In Pennsylvania, for exempt employees under the FLSA:
- Employers generally cannot deduct pay for partial-day absences.
- Employers may require the use of vacation or sick leave for partial-day absences if provided.
- Without vacation/sick leave, pay deductions for partial-day absences are not allowed.
Would you like more information on managing leave policies?
can the employer deduct salaried wage if the minimum hours are not met for salaried employees?
In Pennsylvania, for exempt employees under the FLSA:
- Employers cannot deduct pay for partial-day absences.
- Full-day deductions are allowed if the employee is absent for personal reasons.
- Employers can require employees to use vacation or sick leave for partial-day absences if provided.
Would you need more information on managing leave policies?
If the employee comes into work for * hour, then leaves for personal reasons (like camping), what can the employer do?
In Pennsylvania, for exempt employees under the FLSA:
- Employers cannot deduct pay for partial-day absences.
- Full-day deductions are allowed if the absence is for personal reasons.
- Employers may require the use of vacation or sick leave for partial-day absences if provided.
Would you like more information on managing leave policies?
how many hours qualifies for partial-days?
In Pennsylvania, for exempt employees under the FLSA:
- There are no specific hour thresholds for partial-day absences.
- Any amount of time not worked during a workday constitutes a partial-day absence.
Would you need more information on managing such absences?
So if the employee works * mins every day for 5 days, would the empoloyer have to pay the full salaried amount when they are expected to work for * hours, but only work *.* hours for the week?
In Pennsylvania, for exempt employees under the FLSA:
- Employers cannot deduct pay for partial-day absences.
- Full salary must be paid for any workweek in which the employee performs any work, regardless of the number of hours worked.

Would you like more information on managing exempt employee absences?
can hourly employees be exempt from overtime? Or only salaried?
In Pennsylvania, under the Fair Labor Standards Act (FLSA):
- Only salaried employees can qualify for overtime exemptions.
- Hourly employees are generally not exempt from overtime.
Is there another aspect of employment classification you'd like to know more about?
are here exections for being houlry and being exempt for overtime?
In Pennsylvania, under the Fair Labor Standards Act (FLSA):
- Hourly employees are generally not exempt from overtime.
- Exemptions typically apply to salaried employees meeting specific criteria (executive, administrative, professional roles).
Is there a specific exemption type or scenario you have questions about?
You said generally, are there ways for hourly to be exempt?
In Pennsylvania, under the Fair Labor Standards Act (FLSA):
- Hourly employees are generally not exempt from overtime.
- Certain exceptions may apply, such as specific industries or job roles (e.g., agriculture, certain IT professionals).
Is there a specific industry or job role you are inquiring about?
can the employer change the status for the employee from hourly to salried back to houlry based on performance during each pay period?
In Pennsylvania, under the Fair Labor Standards Act (FLSA):
- Employers can change an employee's status from hourly to salaried and vice versa.
- Such changes should not be frequent or based on performance during each pay period.
- It should comply with FLSA guidelines and maintain exempt/non-exempt criteria.
Would you need more information on managing employee classification changes?
can company disciplinary actions be deductions of pay for salaried employees
In Pennsylvania, for exempt employees under the Fair Labor Standards Act (FLSA):
- Employers generally cannot deduct pay for disciplinary actions.
- Full-day deductions are permissible if the employee is suspended for major safety violations.
- Ensure any deductions comply with FLSA criteria.
Would you need more details on acceptable disciplinary actions?
if the employee receives commissions every 6 months, and receives a bonus of "profit sharing", can the employer retract those benefits if the exempt salaried employee is no longer meeting expectations and no longer working the required amount of hours each week?
In Pennsylvania, for exempt employees under the FLSA:
- Employers can set performance-based criteria for commissions and bonuses.
- If the employment contract specifies, employers can retract commissions and profit-sharing bonuses if employees do not meet expectations or required hours.
Would you like more details on structuring performance-based incentives?
Yes. Can the employer not give out commissions or the bonus if the employees(exempt salried) do not meet the expectations?
In Pennsylvania, for exempt salaried employees under the FLSA:
- Employers can withhold commissions and bonuses if employees do not meet performance expectations.
- This must be explicitly stated in the employment contract.

Would you need more details on structuring such provisions in contracts?
Can this be added, written, and handed to the employee who will be going from hourly to salaried before the transation is finished?
Yes, an employer in Pennsylvania can draft a contract for an employee transitioning from hourly to salaried that includes performance criteria for commissions and bonuses. Ensure the contract states:
- The employee must meet specific expectations.
- Commissions and bonuses can be withheld if expectations are not met.
Would you like more details on drafting such a contract?
Can the employee put in this that "employees who are exempt salaried must work * hours a week and meet work criteria in order to receive commissions and bonus"
Yes, an employer in Pennsylvania can include a clause in the contract stating that "employees who are exempt salaried must work * hours a week and meet work criteria in order to receive commissions and bonus." This must be clearly outlined in the employment contract.
Would you need more details on drafting this clause?
If this is for employees who have been working for the company for *+ years, would this still be good?
Yes, the same principles can apply to employees who have been with the company for *+ years. Ensure that any changes to their employment terms, including performance criteria for commissions and bonuses, are clearly outlined in a new or updated contract. Would you like more information on implementing these changes for long-term employees?
Do these employees need to sign this contract or can it just go into effect?
In Pennsylvania, for changes in employment terms, including performance criteria for commissions and bonuses, employees must sign the updated contract to acknowledge and agree to the new terms. This ensures legal compliance and clarity for both parties.
Would you like more information on how to present this contract to your employees?