Certain exemptions under the Fair Labor Standards Act (FLSA) and Minnesota state law require that an employee must be paid on a “salary basis.”  An employee is considered to be paid on a “salary basis” when the employee “regularly receives each pay period on a weekly, or less frequent basis, a predetermined amount constituting all or part of the employee’s compensation, which amount is not subject to reduction because of variations in the quality or quantity of the work performed.”  See 29 C.F.R. § 541.602(a).
Minnesota law defines “salary” in a similar way.  Minnesota law specifies that “[a] salary is not an hourly rate,” and further provides that “[a]n employee is paid a salary if the employee, through agreement with an employer, is guaranteed a predetermined wage for each workweek.”  See Minn. R. § 5200.0211.