Deductions from an Exempt Employee's Pay
Jan 4, 2022 | | 0 comments
Question: When can we deduct from an exempt employee's pay?
Answer: In general, if an exempt employee performs any work during the workweek, you must pay them their full salary amount. Deductions are allowed, however, for legally required withholding and benefit elections.
There are a handful of other situations in which a deduction from an exempt employee's salary would be permissible under federal law:
- For any workweek in which the employee performs absolutely no work
- In the initial or final week of employment based on the number of hours actually worked
- For absences of one or more full days for personal reasons other than sickness or disability
- For absences of one or more full days due to sickness or disability, if the deduction is made in accordance with a bona fide paid sick leave plan (the Department of Labor has previously found that a plan that offered at least 5 paid days off for sickness qualified as bona fide)
- To offset amounts the employee receives from jury or witness fees or for military pay
- For penalties imposed in good faith for infractions of safety rules of major significance, in accordance with a clearly established workplace policy
- For unpaid disciplinary suspensions of one or more full days imposed in good faith for workplace conduct rule infractions
- For leave taken under the Family and Medical Leave Act