Suspension

GLC

We are wanting to suspend an exempt employee for a week, without pay. It is my understanding anything other than a week could jeopardize the employee's exempt status. Is that right? What if the ee says a week without pay will create a financial hardship and they demand to use their PTO? Do we have to let them use the PTO to cover the time off for the suspension?

Rockie

I have had this issue with exempt individuals in a medical facility not getting their licensure in on time. They are not allowed to work without a license and are told they will be suspended a week without pay. We do not allow them to use PTO because many of them would see this as a vacation, thus eliminating "the penalty" for not doing what they are supposed to do.

Hatchetman

I agree with Rocky. If you suspend without pay, do it full work week increments so that there will be no problem with FLSA.

Also, all of our suspensions are without pay as well. Rockie is right that if you allow the emplyee to use PTO, he or she will not see it as a disciplinary action but a paid vacation. The purpose of a suspension is to make the point that next time, discharge is probable. So, the employee has to understand that, whatever the violation was. In fact, sometimes, suspension should be considered "this warrants discharge, but we are only suspending you without pay because of your..." length of service of your unblemished record, or whatever other mitigating factor maybe appropriate. In short, it's a final notice or last chance. That's why it has to be without pay.