Sample Safe Harbor Policy for FLSA Compliance

The U.S. Department of Labor's rules on the "white collar" exemptions from federal overtime and minimum wage requirements under the Fair Labor Standards Act provide a "safe harbor" that may preserve an employee's exempt status in the event impermissible deductions are made. The rules state that the salary basis component of the exemption test is not lost if the employer:

has a "clearly communicated" policy prohibiting improper deductions, including a complaint mechanism;
reimburses employees for any improper deductions; and
makes a good faith commitment to comply in the future.

This safe harbor is not available, however, if the employer willfully violates the policy by continuing to make improper deductions after receiving employee complaints.

Jackson Lewis is pleased to provide the two sample policies below (one of which is for employees with fluctuating workweeks).

Please note the sample policies are not intended to be legal advice. Any use other than for educational purposes is the sole responsibility of the user. Users should consult legal counsel about the policy language that is appropriate for their individual workplaces.

Related Links
Sample Safe Harbor Policy Sample Safe Harbor Policy for Fluctuating Workweeks

Disclaimer

This article is designed to give general and timely information on the subjects covered. It is not intended as advice or assistance with respect to individual problems. This article is provided with the understanding that the publisher, editor or authors are not engaged in rendering legal or other professional services. Members and others should consult competent counsel or other professional services of their own choosing as to how the matters discussed relate to their own affairs or to resolve specific problems or questions.