Affordable – Approachable – Accessible
Ask the Lawyer: February 2011
Can a medical or dental office give paid time off instead of extra pay when a salaried employee works more than 40 hours in a week? And what if the employee is an hourly employee instead?
This question is perhaps more clearly addressed by “exempt versus non-exempt” instead of “hourly versus salaried” since both exempt and non-exempt employees can be considered “salaried”. Under the Fair Labor Standards Act, an employer is not required to pay overtime but is allowed to offer PTO to a “salaried exempt” employee when the employee works in excess of 40 hours in a work week. An employer cannot provide PTO in lieu of overtime to a non-exempt employee who works more than 40 hours in a workweek regardless of whether that employee is considered hourly or salaried.
The employer should always seek advice from an attorney for additional clarification in individual situations.
This article is for informational purposes only and not for the purpose of providing legal advice. You should contact your attorney to obtain advice with respect to any particular issue or problem. The information contained in this article does not create an attorney-client relationship between Karen McKeithen Schaede Attorney at Law, PLLC and the reader.