Exemption Status after Reduction in Salary and Work Schedule

March 31, 2020

Courtesy of Atkinson, Andelson, Loya, Ruud, & Romo.

How can I legally cut overhead during the pandemic? Many California employers face tremendously difficult choices, including determining whether to reduce employee work schedules and/or pay or conducting temporary layoffs. For exempt employees, this raises unique questions. In particular, can an employer reduce exempt employees’ salaraies without jeopardizing their exempt status? For the full memo, please click HERE