An employer is not obligated to pay an exempt worker’s full salary when the employee works only a partial workweek during their first or last workweek of employment.

Under the FLSA, workers must meet certain tests regarding their job duties and usually must be paid on a salary basis to be exempt from minimum wage and overtime requirements. The salary-basis test requires that the worker must receive a salary of no less than $455 per week.

However, the FLSA regulations state at 29 CFR 541.118(c) that “failure to pay the full salary in the initial or terminal week of employment is not considered inconsistent with the salary basis of payment.” During the first and last weeks of employment, an employer can pay an exempt worker an amount that is proportional to the amount of time actually worked. Payment on a daily or hourly basis that is proportionally equivalent to their salary is acceptable.

This exception to the salary basis test does not apply to a worker who is employed only for a few days. Casual or occasional employment is not consistent with employment on a salary basis. As a result, a worker who works only a few days would not be regarded as exempt and should be paid at least minimum wage and overtime.

Please Note: This material is provided as general information and is not a substitute for legal or other professional advice. Contact the Knowledge Center for more information.

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