Exempt vs. Non-Exempt

Extracted from a recent message by Dan Pyne, of Hopkins and Carly, a San Jose based law firm, “Beware of the Payroll Implications of Temporary Shutdowns During Holidays.” In general, employers are obligated to pay exempt employees their full salary during any week in which the exempt employee performs any services. If an exempt employee does not work on a given day for personal reasons (such as vacation, for example), the employer is typically relieved of its obligation to pay the salary on that day. If an exempt employee does...

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