If we terminate a salaried, exempt employee early in the week, do we have to pay them for the entire week?
No, you’re not required to pay this employee through the end of the week. The general requirement to pay a salaried, exempt employee for the full week doesn’t apply in the first or last week of employment if the employee didn’t work the full week. Instead, you may pay a proportionate part of their full salary based on the time they actually worked that week. This deduction is allowed under the Fair Labor Standards Act.
Learn more about what payroll errors to avoid here.
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