Paying an exempt employee a bonus doesn't threaten his exemption

Q         If an exempt employee is asked to help on a proposal (not part of his normal job duties) and he expected to be compensated but wasn't, is that an issue? Someone also asked him to track his time. Can we pay him a bonus instead?

A   Employees who are exempt from the overtime requirements of the Fair Labor Standards Act (FLSA) must be paid a predetermined salary, which doesn't fluctuate based on the quantity of work they perform. The fact your exempt employee was assigned to help on a proposal outside of his normal job duties shouldn't threaten his status as an exempt employee, provided his primary duty remains work meeting the requirements of the exemption. The request for him to track his time on the proposal doesn't threaten the exemption, either, provided his salary doesn't vary depending on the number of hours worked. Also, you can give him a bonus for the extra work on the proposal. As long as he always receives at least his predetermined salary per workweek, paying him extra doesn't undercut the exemption.

Brad Cave is an attorney with Holland & Hart LLC in Cheyenne, Wyoming. You can reach him at bcave@hollandhart.com.