No Salary-Basis Side Effects for Rite Aid’s Time-Off Prescription

Last Friday, the Fourth Circuit issued an unpublished per curiam decision in Kulish v. Rite Aid Corporation and Eckerd Corporation [here], which affirmed a decision by the District of Maryland [here] that took a practical approach to the “salary basis” requirement for white-collar exempt employees.  The FLSA’s salary basis regulations require most exempt employees to receive the same guaranteed salary every week regardless of the number of hours they work.  The policy at issue in the Kulish case took advantage of an exception to that general rule, which allows employers to reduce their employees’ pay if they take a full-day absence for personal reasons.

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