I'm wondering if anyone has insight into the following situation & what legal obligations I have as an employer...

Firstly, what is the difference between a "salaried" exempt employee and just a "regular" exempt employee? I've read the links DAW and others have posted (thanks!), but can't find the alternative to a "salaried" payment method.

*in this instance, i have employees (in television production) that are project based (less than a 6 month term), hired on a weekly exempt deal memo, as "at will" employees, that allows pro-rated pay as determined by employer based on the # of days worked).

*is there any reason we MUST pay for XMas Eve Day and New Years Eve Day? We've decided to pay for XMas Day & NY Day as just a nice thing to do, but not sure if there's any legal obligation to pay for the other 2 "pre" holiday days - during which the offices were closed.

thanks!
TVP

There are a fairly large number of possible Exempt classifications. Sheepherders. Fisherfolk. Move theater ushers. Outside Sales. Long haul truck drivers. Certain people worker for airlines. Many, many other types. I have a 1,500 page FLSA book that uses at least 400 pages on this subject.

Certain Exempt classifications have restrictions on exactly which payment method can or must be used. Many Exempt classifications are industry or task specific. General Motors cannot decide that the "Sheepherder" rules look interesting and start using them for factory workers.

The "big three" Exempt classifications are Administrative, Executive, and Professional and those classfications generally need to be paid on a Salaried basis. athough technically the Admistrative and Professional classification can be paid on a "fee" basis, and some Professional sub-classifications (Lawyers, doctors, teachers, certain highly paid IT workers) can be paid on an hourly basis.

Employers are never required to pay employees on an Exempt basis. Employers are required however that if they choose to treat an employee as Exempt to follow the rules associated with that exemption.

However, if the employer is paying an employee on an Exempt Salaried basis, then the FLSA regulation 29 CFR 541.602 is in affect, and that regulation has docking restrictions which affects the employer's ability to not pay holidays. If not paying holiday is important to employers, then the employer should not be using the Exempt classification.
http://www.dol.gov/dol/allcfr/ESA/Title_29/Part_541/29CFR541.602.htm

Would XMas Eve and NY Eve be classified as holidays?

If not, and we just decided to close the offices due to the proximity to a federal holiday (and we're following all rules of the particular exemption - will check, but i believe they fall under Administrative), then i assume it's OK to reduce pay for that week?

Just trying to determine that if the employer closes the office, and the employee is ready & willing to work, that it can still be considered an unpaid day.

Also - I assume the two methods of payment are either Salaried or Fee Based?
thanks again
TVP

then i assume it's OK to reduce pay for that week?


Actually I said just the opposite. May I suggest that you actually try reading the 541.602 regulation?

Lets say that Bob is an Exempt Salaried employee under the Administrative exception who normally makes $1,000/week. Because the employer choose to make Bob an Exempt Salaried employee, the employer is required to follow the FLSA 29 CFR 541.602 in their entirity. Lets say that last week Bob worked Mon-Thu but did not work Friday because the employer was closed for holiday, then per the FLSA regulation the employer is required to pay Bob the entire $1,000. The FLSA regulation is very clear that Exempt Salaried employees cannot have their salary docked for days involuntarily not worked (among other restrictions). A general rule of thumb is that docking for involuntary absences need have no work being done for the entire work week to be legal under 541.602.

You also mentioned Fee basis. That is FLSA regulation 29 CFR 541.605. If in that case the employer choose to make the employee Exempt under the Admistrative using the Fee basis payment method, then the employer would have also been required to consistently follow all rules associated with that method. Have you? Because in your original question the Exempt employee was being paid on a Salaried basis.
http://www.dol.gov/dol/allcfr/ESA/Title_29/Part_541/29CFR541.605.htm

thanks for your generous response
TVP