Exempt employees

sphere99

I need help with something. For exempt employees, can we deduct PTO time for sick days? The way I understand the law to be is, we can deduct up till the bank is depleted then just ignore it?

Hatchetman

[font size="1" color="#FF0000"]LAST EDITED ON 12-17-01 AT 06:03PM (CST)[/font][p]Under 29CFR541.118(a)(3), the employer may deduct from the exempt employee's salary, in increments of full days, absences for illness WITHOUT affecting salaried status. Absences due to illness or accident may be deducted only if the employer has a "bona fide" sick leave policy or plan that provides comepnsation for the absence (include accrued time). But the deduction can still be made if the employee has exhausted the available accrued time benefit.

There has been argument made that an employer may dock from an exempt employee's leave balances, partial days' absences since FLSA doesn't speak to accrued time but only to salary.