Paying employees via salary, rather than an hourly wage, can be an enticing option for some farm business owners. It’s a way to avoid costs and simplify payroll. But this approach requires legal consideration. In this episode, we explain how paying employees via salary can be a strategic option for farmers and ranchers who are required to pay overtime. Under federal law, agricultural laborers are exempt from receiving overtime pay for hours worked over 40 in a week. However, as a farmer you might find yourself in a situation where you lose that exemption and do, in fact, owe overtime pay to employees. In that case, salary may be a strategic way to fairly compensate employees while keeping costs low.
Do you owe your employees overtime pay? Can salarying your employees help your business? Listen to this episode to find out!