Generally, an employer may prospectively reduce the amount regularly paid to a salaried exempt employee like you for economic reasons related to COVID-19 or a related economic slowdown. However, any such reduction must be predetermined rather than an after-the-fact deduction from your salary based on your employer’s day-to-day or week-to-week needs. Moreover, any such salary change must also be bona fide, meaning the change is not an attempt to evade the salary basis requirements and is actually because of COVID-19 or an economic slowdown as opposed to the quantity or quality of work you performed.
If your employer properly reduces your salary under these conditions and requirements, you will not lose your exempt status, as long as you still receive on a salary basis at least $684 per week. Please see Fact Sheet #70: Frequently Asked Questions Regarding Furloughs and Other Reductions in Pay and Hours Worked Issues at https://www.dol.gov/agencies/whd/fact-sheets/70-flsa-furloughs for additional information.
2020
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