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Your Employee Matters


By February 1, 2011No Comments

If you missed the webinar, “Are You Ready for a Wage & Hour Audit?,” a recording is available in the HR That Works Webinar area or Media Library. During and following the webinar, the presenters received numerous questions about wage and hour law issues — unfortunately many more than they could respond to during the program.

Here’s a response to two questions about deductions from the salary of exempt employees:

Q. When an exempt employee runs out of sick pay, can an employer deduct one day’s pay for the sick day?

A. Yes. Generally, you must pay exempt employees on a “salary basis,” meaning that they must receive a guaranteed salary for each workweek, without any reduction due to the number of hours worked or the quality or quantity of work performed. However, deductions are allowed in certain limited circumstances, such as the absence of an exempt employee for one or more full workdays due to personal reasons other than sickness or disability, or illness or an accident for an employee covered under a sick-pay policy. If an exempt employee uses up all of their sick days under the sick leave policy, you may still take deductions for any further full-day absences.

Q. Can we allow exempt employees to take sick or vacation time off by the hour or in half-day increments?

A. Yes. However, once an exempt employee exhausts available sick leave, you can only take deductions for any future absences if the employee is absent for a full day, unless the absence is for intermittent or reduced-schedule FMLA leave. Watch the FMLA Webinar for more practical insights on intermittent FMLA leave.