In: Operations Management
Employees who are paid a salary:
are never paid an overtime pay rate because they are considered management.
are required to earn overtime if they work more than 50 hours in a week.
may be paid overtime based on the results of the “salary level test”.
must be paid every two weeks and earn extra paid time off related to the number of hours over 40 they work each week.
(c) Correct- May be paid overtime based on the results of " salary level test" - A salaried employee is not always eligible for an overtime pay. Salaried employees can be exempt and non exempt. Exempt employees are never eligible for overtime pay, which ,means that they get paid according to their predefined rate.The only salaried employees who are eligible for overtime pay are those who earn less than $455 a week ( SALARY LEVEL TEST). These employees are called non exempt employees.
However a salaried employee may get overtime based on salary level test.
(a) Incorrect- Only exempt employees are never paid an overtime pay rate.
(b) Incorrect- same as (a)
(d) Incorrect- Earning of extra time pay is based on the category of employee ( i.e. exepmt or non exempt)