Opinion ID: 773633
Heading Depth: 2
Heading Rank: 1

Heading: The Salary Basis Test

Text: 2 Under Wage and Hour Administration regulations, an employee is considered to be paid on a salary basis if his pay is not subject to reduction because of variations in the quality or quantity of the work performed. 24 C.F.R.§§ 541.118(a). The salaried status of an employee, however, is not affected by penalties imposed in good faith for infractions of safety rules of major significance. 29 C.F.R. §§ 541.118(a)(5). Nor does a suspension of a salaried employee for a full week change the salaried status, because the policy issubject to the general rule that an employee need not be paid for any workweek in which he performs no work. 29 C.F.R. §§ 541.118(a). Thus, a disciplinary suspension of less than a full workweek for reasons other than major safety violations can result in a failure to meet the salary basis test required for overtime exemption.