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-1- What Can An Employer Do? Reduce Payroll by Reducing Working Hours and/or Pay Rates The flexibility to reduce an employee s work schedule and thereby reduce payroll varies between exempt and non-exempt employees. 2 Employees are presumed to be non-exempt, and therefore subject to minimum wage, overtime and meal and rest break laws. The employer bears the burden of overcoming this presumption. Non-exempt employees are paid based on the number of hours worked. In contrast, exempt employee.

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