Must an employee earning below the minimum salary level for determining exempt status under the Fair Labor Standards Act be converted to hourly pay?
Author: Deborah J. Tibbetts, Esq.
No. There is no requirement that a nonexempt (i.e., overtime-eligible) employee be paid on an hourly basis. A nonexempt worker may be paid a set salary, but must be paid overtime for any hours worked over 40 in a workweek.