During these challenging economic times, some employers are opting to hire employees part-time, or reduce employees' hours. As a result, employers are wondering what their responsibilities are regarding reduced work schedules.

The federal Fair Labor Standards Act (FLSA) has no provisions regarding the scheduling of employees, with the exception of certain child labor provisions. Therefore, an employer may change an employee's work hours without giving prior notice or obtaining the employee's consent, unless otherwise subject to a prior agreement between the employer and employee, or collective bargaining agreement.

Exempt Employees Must Be Paid Full Salaries to Keep Their Status
According to the FLSA, exempt employees may not have their predetermined salary reduced for absences occasioned by the employer, or by the operating requirements of the business.  Reducing an exempt employee's predetermined salary may result in the loss of the employee's exempt status under the FLSA. For FAQs regarding furloughs and other reductions in pay and hours worked issues, please view this fact sheet from the U.S. DOL's Wage and Hour Division.

"Pay Issues Surrounding Reduced Work Schedules" October 2010 <HR and Benefits Essentials Newsletter> (October 2010)