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Dear David: Can we pay our nonexempt employees a salary?

Question: Can we pay our nonexempt employees a salary?

Yes. Nonexempt employees may be paid an hourly wage, salary, commission or fee as long as they are compensated for all hours worked at a rate not less than the state (or local) minimum wage and are compensated at one and one half times their regular rate of pay for all hours worked beyond 40 in the workweek (or eight hours in a day for some states).


David Katz

Vice President
VMA Insurance Services
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