Is it legal to pay an exempt salaried employee straight time over their salaried 40 hours? For example: We have an exempt employee salaried at 40 hours. He works 45 hours. Can we pay him for the extra 5 hours? If so, do we have to pay him the overtime rate? We are in Wisconsin.

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Is it legal to pay an exempt salaried employee straight time over their salaried 40 hours? For example: We have an exempt employee salaried at 40 hours. He works 45 hours. Can we pay him for the extra 5 hours? If so, do we have to pay him the overtime rate? We are in Wisconsin.

Yes. You may pay your exempt employees any extra money you wish at any rate you wish.

The main thing to remember is to be certain the position is truly overtime-exempt. If that is not an issue, then pay them anything you wish above the mandated rate of $455 weekly.

Also be certain to have a written policy regarding the circumstances under which an exempt employee will receive this pay and whether or not there are variables. The best practice is to offer this extra pay equally to all exempt workers when the conditions are met.

Here is a link to the DOL explaining this extra pay under 541.604 https://www.gpo.gov/fdsys/pkg/CFR-2010-title29-vol3/pdf/CFR-2010-title29-vol3-sec541-604.pdf

Please let me know if you need further guidance.