Safe Harbor Policy for Exempt Employees

Summary

This template is a safe harbor policy that can protect an employer if it inadvertently deducts from an exempt employee's wages, and therefore violates the salary basis requirement for determining an employee's exempt status. This template includes practical guidance and drafting notes. This policy is essential for all employee handbooks covering exempt employees. For a full listing of key content covering employee handbook considerations, see Employee Handbook Resource Kit. For a wage and hour self-audits checklist, see Employment Law Deskbook § 7.09. For information on white-collar employee exemptions, see Wage and Hour Answer Book (CCH) Exemptions for White-Collar Employees. For information on exemptions under the Fair Labor Standards Act (FLSA), see Wages & Hours: Law and Practice § 3.01.